PIONEER INSTITUTE OF PROFESSIONAL

STUDIES

MAJOR PROJECT SYNOPSIS

ON

“A STUDY OF FACTORS AFFECTING THE PURCHASING OF HOUSE”

GUIDED BY:- SUBMITTED BY:-

DR. V.K. JAIN SAMEER SARSHODE
SEC. R (p)
MBA 3RD SEM
COCEPTUAL FREMWORK
House

a building in which people live; residence for human beings.

a place of shelter for an animal, bird, etc.

A structure intended or used as a habitation or shelter for animals of any kind; but especially, a
building or edifice for the habitation of man; a dwelling place, a mansion.

There are three essential requirement of human beaning in the world food, cloth and resident.
The trend of housing is not new in the past time our ancestors lived in cave in forest gradually
the development they came into hut and after some time the change in the mentality of human
beang the rapid change in social infrastructure like roads, sewers, electricity, open spaces,
gardens, the evolving requirements of social infrastructures like shopping complexes,
restaurants, medical facility zones, schools etc. people are more conscious about the Education,
Health, Social security, public entertainment, security and ecofriendly environment. so the
new trend of housing come.

Types of property

1. Individual house
2. Apartment
3. Flat(1bhk,2bhk,3bhk etc.)
4. Town ship
5. Colony house
6. Duplex
7. Row houses
8. Villa

Factor affecting purchasing of house

1. Environmental
2. Structural
3. Safety Regulations

Builders in indore

1. Sr Builders & Dovelopers.

2. Nerwala Group Pvt Ltd.
 3. Sumangalam.
4. Sourabh Constructions.
5. BM Vijayvargiya Developers.
6.Gyansheela Developers Limited.
7.S R Builders & Dovelopers.

5. Pasand Builders And Developers.

6. PMR Assets Management Pvt.Ltd..

7. Seema Builders.
8. Prime Estate.
9. Laxmi Land Developers Pvt Ltd.
10. NCMSL.
11. Phoenix.
12. RB Estate.
13. Vishal Builders.
14. Vatsalya Group.

15.
16. Tripathi Consultant.
17. Tripathi Consultant.
18. Dream City.
19. Gaurav Constructions.
20. Utkarsh Building Solutions Pvt. Ltd..
21. Vaastu Manthan.
22. Landmark Associates.
23. Tricone Projects India Ltd..
24. Aman Builders.
25. Laxmi Land Devlopers Pvt. Ltd..
26. Pushpdeep Builder.
27. Aakriti Dwelling Pvt. Ltd..
28. East West Developments.

http://www.magicbricks.com/bricks/city/Residential_Indore_real_estate

Projects in Indore
Tricone City, Indore, Indore
Khandwa Road Datoda, Tehsil Mhow, Indore, (MP), India) Gated community with 3-tier
security system. 22 acres of lush green parks and water bodies. Five rows of trees along main
Spine road. UPS (Uninterrupted Power-backup System) for Telecommunication and Entrance
Gate Operation Wide Sprawling Road with green landscaped Corridor: 100’-0’ wide Arterial
Road 60’-0’ wide Sub Arterial Road 45’-0’ wide Collector/Distributor Roads Only one
side development permitted on 30’-0’ wide road.

LITTERATEUR REVIEW
Buying an apartment or a house – what does one look for?
October 20, 2006

by Nita

For most middle class buyers, specially in metropolitan cities like

Mumbai, Delhi, Bangalore or Calcutta, purchasing a house can turn into
a nightmare. After all, purchasing an apartment is a once-in-a-lifetime
decision and therefore very critical. The house is not just a financial
investment, but an emotional one…and if the ‘dream home’ turns out to
be an defective, ill-made structure, it can be extremely frustrating.
Dubious builders
Yet today, more and more fly-by-night developers and promoters are jumping on the real-estate
bandwagon solely to make a quick buck, and few can swear by the quality of their constructions.
Lack of close supervision of the projects, use of inferior building materials and the short-cuts
taken by the builders results in poor and weak constructions.
Some of the short-cuts taken by builders are poor quality of cement used, or the ratio of cement
and admixtures not as per the required norms. At times the structures are not ‘cured’ properly
and this can weaken the construction.
Investing in a sub-standard apartment can mean not only discomfort in daily living with leaking
roofs and commodes and cracked paint, but at times tragedy can strike. There was a case not
very many years ago when a comparitively new residential building called Shivalik in Calcutta
collapsed, killing a large number of it’s residents. There was also the spectacular case of the
collapse of a twenty year office building at Worli, Mumbai in the late nineties.
Poonam Chambers
‘One should approach only well-reputed and experienced firms which are professionally
managed,’ says Prabir Mitra, architect. ‘These firms should have the infrastructure and
manpower to handle the project.’ For prospective apartment buyers it is very important to check
out (in detail) several alternatives before taking that final buying decision.
Be involved from the start
Once the decision has been made, one should not just forget about it. It’s better to get involved
right from the planning stage. It’s less of a head-ache to buy a ready-made home, but one can
never know what went on during the construction, and one must rely only the reputation of the
firms involved.

On the other hand if one buys a proposed apartment, the investor can select the design himself
and also keep a watch on the construction process. Regular visits to the construction site prevents
any unpleasant surprises later on, for what seems good on paper may not translate as well into
reality. There have been innumerable instances where owners have been disappointed with the
actual livable area of the apartment, which has seemed sufficiently large in the work plan. This
happens when space is wasted on transit areas like corridors. Parking spaces (or lack of them)
can also pose a problem. One buyer discovered to his chagrin that he could maneuver his care
into the cramped parking space only with great difficulty. Another felt that it was too long drive
to his allotted parking space.
Where the buyer himself is not qualified to check on whether the design is technically sound or
whether the construction is being carried out according to specified norms, he can certainly
ensure that qualified and competent people are on the job on his behalf. Ofcourse, the builder
will not take kindly to such interference in the construction process. Not very surprising as if
there is a technical problem with the building, it is the promoter who will be liable, not the
builder (unless he is also the promoter). And in the event of design failure, it is the architect and
structure engineers who will be held responsible, not the builder! Defects in the constructing,
once again, are the liability of the promoter.
Aesthetics and space utilisation are not the only important aspects
What every prospective buyer should keep in mind is that aesthetics and space utilisation are
only the tip of the iceberg. The most important aspect is safety. ‘Safety and the legal aspects are
very important and it’s advisable to check that all necessary permissions have been taken and
consulting a lawyer is a good idea. For example, the electrical wiring should be done only by
competent persons. For fire safety, necessary clearances have to be taken by the authorities.
There are also other legal aspects such as the title of the land, number of storeys permitted,
whether the area falls under the jurisdiction of the corporation,’ says Mitra.
Broadly speaking, the factors which clients should familiarise themselves with fall into three
categories:
Environmental
Structural
Safety Regulations
Environmental factors
These concern the location of the site. It should be in a suitable residential area and should not be
a low-lying area which get water-logged during the monsoons. Seepage can not only be a
nuisance, it also affects the foundation of the building. A garbage bin or open drain close to the
site can mean offensive odours, flies, mosquitoes and other insects. A factory nearby means
additional nose and air pollution. If it is unavoidable, the client can ask for sound-proof walls.

Structural factors
To construct a structurally safe building, the client has to ensure that competent people are
closely supervising the work. Two important factors ignored by many promoters are anti-
corrosion measures, which are particularly important for cities like Calcutta, Mumbai or
Chennai, which are near the sea. These measures should be applied during construction and also
as a maintenance routine. Nitty-gritty’s like sunlight in the rooms or whether the bedroom
windows are facing the wind directions are also important. The client can also ask for extras like
netting on the windows and exhaust fans in the kitchen and bathrooms.
Safety
All necessary permission required by law need to be taken.
Poor Maintenance
If in spite of taking all the necessary precautions, the construction develops snags – it is usually
because of poor maintenance or construction of illegal structures without proper pillar support
after the building has been competed. A building, for example may not be designed to take a
terrace garden with two to three feet of earth. Truckloads of material carried carelessly to the
higher floors can damage support structures. This was what was alleged to have happened in the
case of the damaged Shivalik apartments. A pillar was accidentally knocked down and not
repaired. Often offices and residences brazenly re-model their spaces and this too brings in
additional load on the structure.
At times, construction work in another part of the building can cause vibrations and damage the
structure.
Why the secrecy as to the causes of collapse?
Building collapses are not a strange phenomena for those living in India. The problem is that
here it’s not easy to get to the root case of a building collapse. The authorities as well as the
builders are usually vague or tight-lipped on the issue. Such secrecy is ridiculous, considering the
re-occurrence of such incidents and the loss of life. If the results of investigations into major air
and rail disasters can be made public and the causes can be pin-pointed, there is no reason why
the public cannot know the reason for each and every building collapse.
Partly this is the fault of the media as it does not follow through to find out the exact causes of
the disasters and also partly due to the money that changes hands amongst the builders and those
in power.
This kind of apathy, on the part of our society is strange, considering that a study commissioned
by HUDCO said that the cost of repairing a building after 20 years will be what it costs to
construct it!
http://nitawriter.wordpress.com/2006/10/20/buildings-weaken-and-even-collapse-or-life-
becomes-a-living-hell-in-leaking-damp-apartments/S

Real Estate

Last Updated: July 2010

The real estate sector in the country is one of great importance. According to the report of the
Technical Group on Estimation of Housing Shortage, an estimated shortage of 26.53 million
houses during the Eleventh Five Year Plan (2007-12) provides a big investment opportunity.
India leads the pack of top real estate investment markets in Asia for 2010, according to a study
by PricewaterhouseCoopers (PwC) and Urban Land Institute, a global non-profit education and
research institute, released in December 2009. The report, which provides an outlook on Asia-
Pacific real estate investment and development trends, points out that India, in particular
Mumbai and Delhi, are good real estate investment destinations. Residential properties are
viewed as more promising than other sectors. While, Mumbai, Delhi and Bengaluru top the pack
in the hotel 'buy' prospects as well.
The study is based on the opinions of over 270 international real estate professionals, including
investors, developers, property company representatives, lenders, brokers and consultants.
Further, real estate companies are coming up with various residential and commercial projects to
fulfill the demand for residential and office properties in Tier-II and Tier-III cities. For instance,
Ansal Properties has several residential projects in cities such as Jodhpur, Ajmer, Jaipur, Panipat,
Kundli and Agra. Omaxe has also planned around 40 residential and integrated township projects
in Tier-II and Tier-III cities, majority of them being in Uttar Pradesh, Punjab, Madhya Pradesh,
Rajasthan and Haryana. The growth in real estate in Tier-II and Tier-III cities is mainly due to
increase in demand for organised realty and availability of land at affordable prices in these
cities.
According to the data released by the Department of Industrial Policy and Promotion (DIPP),
housing and real estate sector including cineplex, multiplex, integrated townships and
commercial complexes etc, attracted a cumulative foreign direct investment (FDI) worth US$ 8.4
billion from April 2000 to April 2010 wherein the sector witnessed FDI amounting US$ 2.8
billion in the fiscal year 2009-10.
New Projects
Private equity fund IL&FS Investment Managers (IIML) plans to invest US$ 300 million in real
estate and urban infrastructure projects by the end of 2010.
Godrej Group's real estate company, Godrej Properties and Frontier Home Developers, plans to
develop a residential project in Gurgaon. This would be the first residential project in the
national capital region (NCR) for Godrej Properties.

Shristi Infrastructure Development Corporation will invest US$ 444.7 million over the next three
years in seven small cities in West Bengal, Tripura and Rajasthan. The money would be used to
build integrated townships, healthcare facilities, hospitality and sports facilities, retail malls,
logistics hubs and commercial and residential complexes.
Realty major Ansal Properties & Infrastructure Ltd plans to invest about US$ 330.8 million over
the next three years on expansion of its existing integrated townships and to develop a group
housing project in Haryana.
Integrated property development and asset management company, Vision India Real Estate Pvt
Ltd, is planning to develop logistics parks in Bengaluru and Chennai, with an outlay of US$ 110
million.
Tata Housing is planning to launch about 10 new residential projects in both affordable and
luxury segments in 2010-11, with an investment of about US$ 268.9 million along with its
partners.
Real Estate

Last Updated: July 2010

Vision India Real Estate, a closely-held business group in the US, is investing US$ 5 million in
Gem Group’s upcoming residential project in Chennai. This will be the first joint development
project for the US company that is proposing to invest US$ 100 to US$ 200 million over the next
three years on projects, especially in the logistics arena.
Government Initiatives
The government has introduced many progressive measures to unlock the potential of the sector
and also to meet the increasing demand levels.
• 100 per cent FDI allowed in townships, housing, built-up infrastructure and construction
development projects through the automatic route, subject to guidelines as prescribed by
DIPP
• 100 per cent FDI is allowed under the automatic route in development of Special
Economic Zones (SEZ), subject to the provisions of Special Economic Zones Act 2005
and the SEZ Policy of the Department of Commerce
• FDI is not allowed in Real Estate Business
In the Union Budget 2010-11, the Finance Minister made the following announcements with
regard to the real estate sector:
• Allocation for urban development was increased by more than 75 per cent from US$
660.3 million to US$ 1.17 billion in 2010-11
• Allocation for housing and urban poverty alleviation was raised from US$ 183.4 million
to US$ 215.8 million in 2010-11
• Scheme of 1 per cent interest subvention on housing loan up to US$ 21,576 where the
cost of the house does not exceed US$ 43,153 announced in the last budget has been
extended up to March 31, 2011 and US$ 151 million has been earmarked for this scheme
for 2010-11
• US$ 274 million has been allocated for Rajiv Awas Yojna, as compared to US$ 32.4
million last year
• Meanwhile, the Reserve Bank of India (RBI) has revised the norms for urban cooperative
banks for giving loans to the housing and real estate (RE) segment. Now, urban banks
can use up to 15 per cent of deposits to provide housing, real estate and CRE loans.
Earlier, the RBI norm permitted them to use up to 15 per cent of deposits for giving
advances to housing loans and other block capital loans.
Road Ahead
According to the Confederation of Real Estate Developers' Associations of India (CREDAI), the
affordable housing segment is set to play an important role in India's real estate sector in 2010 on
the back of substantial demand.
"Affordable housing will be a key factor in driving the sector and we have already started
working on progressive solutions in this area for effective and customised implementation of
such projects," Confederation of Real Estate Developers' Associations of India (CREDAI)
Chairman Kumar Gera said in January 2010.
Moreover, 2010 is expected to be a positive year for the real estate sector. The revival is
expected to be driven by infrastructure growth, which in turn, can accelerate real estate activities
both in the residential as well as commercial spaces.

Manjeera Constructions announces major mixed-use project .

The Hindu Business Line: September 07, 2010

Hyderabad: Manjeera Constructions Ltd, on Monday, unveiled plans to develop a Rs 600-crore

1.8 million sq ft of office, commercial cum residential mixed use project, on the busy
Kukatpally-Hitec City corridor in the city.

The project, Manjeera Trinity, is being part funded through foreign direct investment (FDI),
made by Trinity Capital in to the project. Trinity Capital has infused Rs 80 crore as its equity,
picking up about 49 per cent stake in the project.

“We have achieved financial closure for the project. Of the Rs 600 crore, the project will have an
equity component of Rs 150 crore and the rest will be through debt. As we take up the project,
we will also secure advances from the potential buyers,” Mr G. Yoganand, Chairman of
Manjeera Constructions, said.

Commercial space

Addressing a press conference here, on Monday, to announce the company plans, Mr Yoganand
said that of the 1.8 million sq ft of built-up space, about 9,00,000 sq ft will comprise commercial
space developed on a 19-floor tower, another 4,50,000 sq ft would be commercial space for
malls and multiplexes and the rest will be in the form of luxury living spaces.

“We have passed through a tough phase of the real estate business and there are signs of revival.
There is a shortage of quality commercial space at strategic locations. Enquiries for commercial
space from prospective buyers show that there is demand to lap up properties at good locations.
The property we have acquired from the AP Housing Board in 2006 is well placed to cater to
such demand,” he said.

“The company has so far developed about three million sq ft of built-up space, spanning
residential, commercial and hospitality projects. We have another five million sq ft of space in
pipeline, including Trinity project,” he said.

The company has also launched a ‘Price Guard' scheme, that protects buyers from the downward
slide of prices beyond 5 per cent.

It is also offering property management services through PropServ, for its customers in India and
abroad.

http://www.ibef.org/artdispview.aspx?in=60&art_id=26499&cat_id=381&page=2

DLF, Unitech, Emaar & Ansal plan to launch Rs 2 cr plus homes

The Economic Times: July 27, 2010

New Delhi: Yet another piece of the real estate market appears to be getting back in shape. After
realtors focused on the affordable housing space, where demand remained reasonable when
market prices crashed two years ago, they are now launching luxury homes as the segment is
witnessing early signals of an upswing in demand.
Sensing this turnaround, a host of property developers including DLF, Unitech, Emaar MGF and
Ansal API are gearing up to launch plush housing projects, where a single unit costs upwards of
Rs 2 crore, over the next six months.
“Now that the job market is looking up, consumers are once again regaining the confidence to
put money in swank projects,” said Shravan Gupta, executive vice-chairman and managing
director at Emaar MGF.
The Delhi-based property developer plans to launch around 2,000 upscale units over the next six
months across cities such as Gurgaon, Hyderabad, Punjab, Bangalore and Kerala.
Unitech, the country’s second-largest builder, which had focused on affordable housing space,
too plans to launch a few luxury projects to target high-end home buyers. Unitech spokesperson
said it has a few projects in the works in the luxury housing segment located in the national
capital region.
Luxury homes are targeted towards high net worth individuals and the price range of such
apartments varies from city to city. While in metros such as Mumbai and Delhi, the cost of such
high-end houses can begin from Rs 2 crore, in tier-II cities they can be around Rs 1 crore and
above.
Builders in this category focus on fully-embellished apartments, which can be further customised
to the individual buyer’s preferences. Pranav Ansal-led Ansal API plans to launch a mix of high-
end villas and apartments in Lucknow and NCR by the end of 2010. While they are coming up
with a golf course property in the price range of Rs 3-7 crore in Lucknow, in Gurgaon they are
launching villas in Esencia township in the bracket of Rs 6-7 crore.
Anil Kumar, deputy MD & CEO at Ansal API said the rising aspiration levels of consumers in
India is the major factor propelling growth in the luxury realty segment. “More than expensive
and stylish interiors and fittings, today consumers are looking for more environmental-friendly
features which are becoming luxuries for a better quality life and they are ready to pay for them,”
he said.

India’s biggest realtor DLF recently sold super luxury flats in the price range worth Rs 4 crore
each in central Delhi. Besides, it also launched at least three high-end projects in Gurgaon
including Park Place and Golf Links, which too were reportedly sold off within days of launch.
Anurag Mathur, MD at real estate services firm Cushman & Wakefield, said: “Prices of luxury
homes in general has touched the peak level of 2007, while in some places such as Gurgaon and
Mumbai, they have exceeded the 2007-prices.”
As per estimates of Cushman & Wakefield, over 8,000 residential units in the luxury segment are
expected to be ready by 2013. The total supply expected this year will be 85,000 units of which
about 14% will be luxury projects.
Home Market Trends and Factors Affecting Market Value of Homes.

Jun 26, 2010 Swapna Antony

Home Market Trends - Jaydec

The housing market is affected by factors such as the state of economy and job market. An analysis of
home market trends and the prices of homes.
A home is often the most important investment a person makes. Even a layman who has studied
the home market trends over the years has learned that when the value of the home goes up, so
does the consumer spending. The reason for this is psychological. The increase in price of the
home, his most important investment, often gives the consumer a sense of security even if the
increase in price is not tangible.
Market value of a home is the price that seller can expect to receive from a buyer in a fair and
open negotiation. The price is mostly dependent on factors such as location, the total square feet,
age of home and so on. However a renovated kitchen or brand new carpet may not fetch a good
price if there are certain external factors at play. These include the overall health of the economy,
job market, long-term interest rates, current unemployment situation etc. As we have only
recently seen, these factors can sometimes play a huge role in determining the price of a house.

How Economy Affects the Housing Market

A healthy and growing economy is an imperative requirement for a good market value. People
often put off making an important decision such as purchase of a home when they are unsure of
keeping their jobs. Also a nosediving stock market reduces the total assets which they have on
hand to put as down payment towards the house.

Long-term Interest rates and the Home Market

Historically low levels of long-term interest rates have favored an increase in market price of
homes. This is because a home is a long-term investment, typical home mortgages have a span of
30 or 15 years and most homes outlives their first buyer. A low interest rate can save thousands
of years over the years, and so in a market free of other external factors, the market value of
homes go up when the interest rates are low.
The Job Market and its Effect on the Market Price of a Home
High unemployment levels often results in the housing market going down. As mentioned
earlier, people do not purchase homes when they don't have a job or if they are not sure they can
hold on to their jobs. Secondly, in a volatile job market many people are forced to relocate. For
example if a person loses his job and find another one in another part of the country he may be
forced to sell his homes at the asking price if he wants to buy another one in the new place.

RATIONALE
In the past time people wanted only shelter for there living and they didn’t want any luxury and
facilities. But now a day people are want different type of facilities like roads, sewers, electricity,
open spaces, gardens, the evolving requirements of social infrastructures like shopping
complexes, restaurants, medical facility zones, schools etc. are clearly delineated. Education,
Health, Social security, public entertainment etc.

People find out these facilities in organized colony. There are many real estate organization work
in indore like satya builders and developers, Sr Builders & Dovelopers. Nerwala Group Pvt Ltd.,
BM Vijayvargiya Developers., Sumangalam. Sourabh Constructions., Gyansheela Developers
Limited. , S R Builders & Dovelopers. etc

So the main motive of the study to find out that how much the people influence these
construction organization, what they expect from them and what is the future of real stete
company in Indore.

OBJECTS OF RESEARCH

1. To understand the basic reqirement of individual and family in purchasing of

house.
 2. To know about the future of realestate organation in indore.

3. How much people are aware about social security, facilities and ecofriendly
environment.

RESEARCH DESIGN

Sample Design:

The research design specifies the method and the procedure for acquiring the
information needed. It is overall framework of the project that stipulates what information is to
be collected for which source and by what procedures is to be collected.
 The source of information for this study will be self-design questionnaire is
statistically analyze using appropriate statistical tools for the purpose of comparison of
perception of individual and family household.

Questionnaire will be designed for the families who purchase flat, individual houses and
apartment, withen 2-3 years and costing 10-15lakh

The sample has been collected as follows:

Sample unit: people who purchase house recently and the cost is 10-15 lakh.

Sample size 200

200 respondents will be conduct among the sample size.

TOOLS FOR DATA COLLECTION

Data is collected though survey (through questionnaires).

A questionnaire consists of a number of questions printed or typed in a definite order on a form

or set of forms. The questionnaires are handed to respondents who are expected to read and
understand the questions and write down the reply in the space meant for the questionnaire itself.
The respondents have to answer the questionnaire on their own.

Reasons to choose questionnaire as data collection tool:

Low cost even when the universe is large and is widely spread geographically.

It is free from the bias of the interviewer; answers are in respondents’ own words.

Respondents have adequate time to give well thought out answers.

Respondents, who are not easily approachable, can also be reached conveniently.

Large samples can be made use of and thus the results can be made more dependable and
reliable.

TOOLS FOR DATA ANALYSIS

Pie charts will be use for the analysis of data collection through the questionnaire.
 EXPECTED OUTCOMES

1. People are conscious or not about the social security and ecofriendly environment.

2. People like or dislike the facilities like hospital, retail store, swimming pool,
school, gymnesiam, club membership etc.

3. People are give the importance to money or facilities.

 REFERENCES/BIBLOGRAPHY

1.http://www.magicbricks.com/bricks/city/Residential_Indore_real_estate

2.http://www.ibef.org/artdispview.aspx?in=60&art_id=26499&cat_id=381&page=2

3.http://nitawriter.wordpress.com/2006/10/20/buildings-weaken-and-even-collapse-or-life-
becomes-a-living-hell-in-leaking-damp-apartments/S

4.The Hindu Business Line: September 07, 2010

5.The Hindu Business Line: September 07, 2010