SYNOPSIS

ON

REAL ESTATE INVESTMENTAT AT

A SYNOPSIS SUBMITTED TOWARDS THE FULFILLMENT OF THE

REQUIREMENT OF THE MBA-FINENCE

SUBMITTED TO BY: IMT GHAZIABAD

SUBMITTED VIVEK KUMAR SAXENA RO.NO. 51100450

UNDER GUIDENCE OF : AMIT VERMA MANAGER FINANCE DLF

INSTITUTE OF MANAGEMENT TECHNOLOGY, GHAZIABAD

Acknowledgement
I would like to express my heartfelt gratitude to my project guide Mr. Amit Verma, Manager Finance, DLF Gurgaon. Without whom the completion of this project would not have been possible. I also thank my friends who helped me a lot while doing the research work. Last but not the least, I would like to thank persons for putting in their time and effort in completion of project who helped me in various ways, directly or indirectly. At last I would like to grateful to my research project guide rs.Amit !erma " all my friends for their encouraging support.

#roject $uide % r. Amit !erma anager &inence 'L&, $urgaon !ivek kumar (axena )A* &inance +o. ,o. -..//0-/

TO WHOMSOEVE #O$#E $
1his is to certify that Institute of

!T MA"

r. !ivek (ingh, a student of EAL ESTATE

anagement 1echnology, $ha2iabad,

undertook a project on %ST&D" OF !$VESTMET$' at 'L& $urgaon.

Mr. Vivek Kumar Saxena has successfully completed the project under the guidance of Mr. Amit Verma , Manager Finance 'L&.. 3e is a sincere and hard*working student with pleasant manners. We wish all success in her future endeavors.

Mr. Amit Verma (Manager Finance)

DLF Gurgaon

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O$%E!TIVE OF ST&'()*
9bjectives of the study are as follows%

 +eview of real estate industry in India and its road ahead #ricing and appraisal of real estate Investment opportunities and risk profiling

ESEA #H METHODOLOG"
+5(5A+43 '5(I$, (electing the method to collect the data is one of the most critical decisions in research. I had chosen personal interviews as the method to gather information. All the research is done through face*to*face interaction. 1he information with regards to the trends in the real estate was collected by the means of personal interviews. ,umerous visits were made to the offices of these real estate developers and interviews were conducted with the variety of people ranging from the 5xecutive* arketing to the director of the company. In personal interviews, I had the opportunity to probe or ask follow*up Fuestions and interviews are generally easier for the respondent, especially when you are seeking impression. !arious brochures of their upcoming projects were collected from their respective offices.

#OM*A$" * OF!LE
DLF
3istory% 1he 'L& $roup was founded in .E0?. It developed some of the first residential colonies in 'elhi such as =rishna ,agar in 5ast 'elhi, which was completed in .E0E. (ince then it has developed many of 'elhiGs well known urban colonies, including (outh 5xtension, $reater =ailash, =ailash 4olony and 3au2 =has. &ollowing the passage of the 'elhi 'evelopment Act in .E-@, the state assumed control of real estate development activities in 'elhi, which resulted in restrictions on private real estate colony development. It commenced acFuiring land at relatively low cost outside the area controlled by the 'elhi 'evelopment Authority, particularly in the district of $urgaon in the adjacent state of 3aryana. 1his led to our first development, 'L& Hutab 5nclave, which has evolved into 'L& 4ity, our landmark project. 'L& 4ity is spread over >,/// acres in $urgaon and is an integrated township, which includes residential, commercial and retail properties in a modern city infrastructure with schools, hospitals, hotels and shopping malls. It also boasts of the prestigious 'L& $olf and 4ountry 4lub with night golfing facilities.

Overview:
1he 'L& $roup has charted it next growth steps to retain its leadership position in India. Already a major player in locations across the country, including key metro cities and urban centres, 'L&, with over (ix decades of experience, is focusing on strengthening its lateral and vertical business drivers. 1hese include development of innovative business strategies,

strengthening its professional resources and driving market penetration with an ear*to*the*ground approach that is adaptive to local market needs. 1he group is capitalising on emerging market opportunities to deliver high*end facilities and projects to its wide base of customers by constantly upgrading its internal skills and resource capabilities. In line with its current expansion plans, the 'L& $roup has over <?/ million sF. ft. of development across its businesses, including developed and on*going projects. 7nder its home, offices and shopping mall segments, 'L& is credited with over <- million sF. ft. of completed developments, while projects under construction represent over 0- million sF. ft across the three verticals. 1he 'L& $roup has made significant progress in pursuing new business opportunities in hotel, infrastructure and (5Is A(pecial 5conomic IonesB. 'L& and Laing 9;+ourke, 7= are strategic partner in several infrastructure projects. Laing 9;+ourke are global leaders in construction credited with landmark projects such as the 'ubai International Airport, illennium 1ower and the 1*- Airport 1erminal in 7=. 1hrough this joint venture A:!B the $roup plans construction of projects in the sectors of expressways and airports. All the intensified growth underlines, 'L&;s commitment to Fuality, trust and customer sensitivity, and delivering on its promise with agility and financial prudence. 1his, in turn, has earned 'L& the coveted J(uperbrand; ranking. 'L& is the only company in India in the 4onsumer validated category from the real estate sector to have been awarded this distinction. 1he 3omes business line involves a wide range of products including condominiums, duplexes, row hoses and apartments of varying si2es, with a focus on the higher end of the market. 1o the .@ million sF. ft of developed area under homes with.Emillion sF. ft of plotted development, 'L& intends to augment its oldest business area by developing another >@- million sF. ft of projects across the country in the long term.

'L&;s office segment is one of the group;s most admired vertical. ,early >< million sF. ft. of developed as well as on*going projects are a significant contributor to the growth of office spaces of the most contemporary architecture. #lans to develop another ?< million sF. ft. across the country, is aimed to give 'L& .-*</K of market share in the business " commercial sector. With a booming retail environment on the hori2on, this is a major thrust area for the $roup and 'L& is actively creating new shopping and entertainment spaces all over the country. 1here are over 0< million sF. ft. of Fuality retail space developed and under development in metros and other urban destinations across the country. 1hese include categories of prime downtown shopping districts, shopping centres and super luxury malls. With the growth of the Indian economy and the resulting increase in corporate and consumer incomes, as well as foreign investment, 'L& sees significant opportunities for growth in its three primary businesses. 'L&;s mission is to build a world*class real estate development company with the highest standards of professionalism, ethics and customer service and to thereby contribute to and benefit from the growth of the Indian economy. 1he key elements of its business strategy are as follows% L Increase land reserves in strategic locations L 5xpand core business verticals nationally L 'iversify into (5I development L 7ndertake infrastructure development with Laing 9;+ourke plc L 'iversify into hotel development

E#OMME$DAT!O$
+eal estate investing allows investors several ways to make andMor save money that other investment tools will never allow or have the ability to provide. 1he key to building true wealth in real estate is through buying and holding.

 1he sector is characteri2ed by limited transparency and significant transaction costs, inevitably leading to uncertainty in asset valuation that needs to be adeFuately addressed to retain investor confidence. 3ence, it is imperative to have a price discovery tool for realty . +eal estate mutual funds A+5 &B would soon be a reality in India. 9ne stumbling block to floating such investment platforms is the real difficulty of regular disclosure of ,et Asset !alue A,A!;sB. +egular mutual funds which deal in stocks, bonds and sundry money market instruments are traded freFuently and vigorously, so their ,A!;s are disclosed daily. )ut given the fact that real estate as an asset class is infreFuently traded and may infact be entirely unlisted, determining regular ,A!s for +5 &;s can indeed be problematic. o 9ne way is to mandate disclosure of ,A!s for such funds Fuarterly of semi*annually. o 4redible price indices for property market, which is technically challenging given the heterogeneous nature of the assets. o Also, what is needed is transparency, regular price discovery and risk management via property and credit derivatives. o (trong database is needed to track real estate transaction, returns and prices.

#onclu+ion
India has enormous potential in all its property investment categories. (trong population growth, a large pool of Fualified workers, greater integration with the world economy and increasing domestic and foreign investment are fuelling demand for office, retail and residential property. IndiaGs combined commercial and residential real estate market is valued at N.< billion, which is around < percent of the countryGs $'# and < percent of total stock market capitali2ation. And it is only getting larger. 1he real estate market is growing at a rate of >/ percent per year and expected to reach NE/ billion within the next ./ years. As the competition in the market is intense, builders are going out of their way to be different. (peciali2ed malls have become the order of the day. (imilarly in the home segment, which is driven by the availability of easy home finance, most builders are trying to woo investors with interesting features, each more tempting than the other. +eturns from real estate investment in India have been traditionally lower than in other Asian countries. 1his is mainly due to the restrained capital flows and the lack of an organi2ed institutional investment market. Investment in real estate in India is at a nascent stage. An investor can invest either directly in property or in shares of the listed companies in the sector.

 +eal estate provides returns that are comparable with returns on eFuities. 3owever, the volatility in prices of real estate is lower than eFuities leading to a better risk management to return trade*off for the investment. 1he risks involved in investing in real estate are primarily to do with future rental depreciation or general property market risk, liFuidity, tenancy risk and property depreciation. 1he fundamental factors affecting the value of a specific property are location, physical characteristics, tenant credit risk, lease length, liFuidity, tax implications etc.

India needs a stronger capital market base for property financing. 1he government and (ecurities and 5xchange )oard of India (5)I through various notifications is in the process of easing the norms of investing in real estate in India directly and indirectly through foreign direct investment, through listed real estate companies, mutual funds etc. With the current real estate boom and the market being flooded with Initial #ublic 9ffer of various listed real estate companies in India it will be the best time for investors to own a share of the profiting market economy. Legislative framework, revised investment norms and a favourable investment opportunity, and a clear taxation policy will provide the right kind of investing opportunity in India in the time to come.

3igh level of transaction cost is involved with the purchase or sale of a house. 1here are significant brokerage, legal and banker fees involves given the capital intensity of the sector. )ut, the tax benefits available for housing and real estate seem to have coagulated funds and actuali2ed investment intentions. 1he latest +eal 5state 1ransparency Index, a study of real estate market transparency in -? countries and territories worldwide, has given India ranking of Osemi transparentP from Olow transparentP this has made real estate an attractive asset class for investment.

 1he introduction of +5I1;s in <//@ will give international investors in particular a familiar investment vehicle. #rivate investors could also enter into indirect investment in real estate. Although interest in new products is most likely to come primarily from institutional investors, the rising middle class is likely to seek new instruments aside from direct property investments in the medium term. +5I1 and interest rate have inverse relation. In growing economy like India, where interest rate have been rising, the high yielding +5I1;s provide a sort of hedge against price declines% if you buy a high*yield +5I1, any price decline will be mitigated by high income in the meantime. 1hus, investment in +5I1 would prove to be an attractive investment option.

e,erence+
Websites o www.economictimes.com o www.nseindia.com o www.wikipedia.com o www.sebi.com o www.businessline.com o www.realtystocks.com o www.investopedia.com o www.realtymantra.com o www.realestateindia.com o www.economist.com o http://timesofindia.indiatimes.com/articleshow/18 !8"".cms o www.primaryindia.com o http://www.deepakshenoy.com/articles/realestate/realestatecf.htm o www.ma#icbricks.com

o o o o

www.pers$uareyard.com www.dlf%#roup.com www.unitechlimited.com www.db.com

Magazines Ne!s"a"e#s$ o &ndia 'oday o 'oday (roup: )eal *state o 'imes property o *conomic times o +usiness standard o +usiness world

,/+ -.%D/ 0ari *nclave/ 1ayapuri/ 2ew Delhi 3 11""45.

6mit 7erma
CAREER OB!ECTIVE :

'o achieve the professional e8cellence in the area of work with a 9eal to syner#ise self%#rowth with or#anisational #rowth throu#h my initiatives and hard work.
"UALIFICATION : Academic $rofe!!ional WORK EXPERIENCE : : : B.Com. from Delhi Uni er!i"# M.B.A. % Finance To"al &rofe!!ional e'&erience of () #ear!.

MA!OR ACHIEVEMENT :

I#$%&'()#%*+ ,# P+*#% C*-,%*+,$*%,.# C.((,%%)) *% !. K. I#/'$%&,)$ L%/. G*0&*'+* 1.& 2*-,%*+,3*%,.# .1 A$$)%$ '#/)& 2.#$%&'2%,.#4,#$%*++*%,.# ,#5.+5,#6 * %.%*+ .'%+*7 .1 R$.80 2&.&)$ ,# 199:.
!OB PROFILE :

&ndependently handlin# complete +ooks of 6ccounts. :reparation and finalisation of Financial 6ccounts in ;omputerised *nvironment. :reparation of monthly cash% flow statement and bud#et. &ndividual 'a8 calculation for 'D< purposes = fillin# of yearly 'D< returns of <alary/ ;ontractors/ )ent = :rofessionals. 0andlin# complete <ales 'a8 6ssessment under Delhi%76' Dealin# with &nternal 6uditors as well as <tatutory 6uditors ;ompilation of details and settin# of $ueries for completion of +lock 6ssessment of the company under &.'. 6ct.

 +ill passin#/ preparation of purchase book/ sales book/ issuin# of debit / credit notes = scrutiny of led#er. :urchase = <tock reconciliation with warehouse.

INFORMATION TECHNOLOGY SKILLS : F,#*#2,*+ P*2;*6)$ A--+,2*%,.#$ : : Tall# *.+ , Fo' &ro -a!ed F. A. M! - Office

SUMMARY OF EXPERIENCE: C.rren" /o- : M4$. DLF G'&6*.#. <S,#2) N.5.=00>? 0or1in2 a! M*#*6)& F,#*#2). $a!" Em&lo#men"! : M4$. U#,%)2@ L%/. N)A D)+@, <N.5.199: %. S)-%B=00>? 0or1ed a! S&. EC)2'%,5) <A22.'#%$ D F,#*#2)?.

M/s. Parshav Nath Builders, Noida (May 1995 -November,1996) Worked as Asstt. Accounts Officer.
M4$. E*$%(*# C*$% D F.&6) L,(,%)/ L'/@,*#* < D)2.199> B M*7 1995? 0or1ed a! A!!i!"an" Acco.n"an". FATHER34 NAME $RE4ENT ADDRE44 : : 4H.Mahe!h 5erma A-(+6 OC4 A&ar"men" Ma#.r 5ihar6 $ha!e-I6 Ne7 Delhi.

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