A

PROJECT REPOR

ON

“SALES PROMOTION OF REAL ESTATE MARKETING”

AT

VENKATESHWARA PROPERTIES

SUBMITTED BY

MR YASH GHIYA

UNDER THE GUIDANCE OF

PROF. URMILA NIKAM

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITTY

IN PARTIAL FULFILMENT OF REQUIRMENTS FOR

THE AWARDS OF

THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

2017-2019

THROUGH

Sinhgad Institute of Business Administration and Research

PUNE

1
 DECLARATION

I, the undersigned, hereby declared that the project report titled “SALES
PROMOTION OF REAL ESTATE MARKETING” written and submitted by
me to the Savitribai Phule Pune University, in partial fulfillment of the
requirement for the award of degree of Master of Business Administration
(MBA) under the guidance of Prof. Urmila Nikam . This is my original work and
conclusions drawn therein are based on material collected by myself.

Date: Yash Ghiya

Place: Pune MBA-II (IB)

2
 ACKNOWLEDGEMENT

This project work, which is my first step in the field of professionalization, has
been successfully accomplished. I would like to sincerely thank My Project Guide
Prof. Urmila Nikam who gave me the most Valuable Inputs and Feedback during
the Preparation of this Project and providing a platform to understand the
corporate culture.

I am also thankful to Dr. Avdhoot Pol for approving my Project.

I would like to sincerely thank my Company “Venkateshwara Properties” which

has provided me with this Valuable Opportunity to fulfill my Quest for
Knowledge.

I would also like to thank my Company Guide Mr. Dinesh Lad and their entire
staff for providing me with valuable inputs, help and support whenever required.

And last but not the least I wish to express my proud full thanks to Other Faculty
Professors who have always been there for me and inspired me to do better each
time.

Date: Yash Ghiya

Place: Pune MBA-II (IB)

3
 EXECUTIVE SUMMARY

The realty industry today has changed so much that each sector needs special skills to
make it work efficiently. All over the world, prices are fluctuating. Global agencies
monitor trends in the top influential cities. With many foreign investments in India
and NRIs returning, the Indian property market watch is on the top most of every big
agency.

To understand real estate marketing one should at least have the minimum knowledge
required to step into the complex industry. The purchasing power of the new
generation of Indians has increased. They are investing in real estate in a big way- in
terms of investment and assets. People have acquired refined tastes in housing needs
and have become professional in dealing with builders. Financial companies and
banks have given a boost to real estate marketing as well. Every area of real estate be
it industrial, retail space, malls, office complexes, residential colonies, hospitals,
clinics and other healthcare units have a vast potential for growth.

As more opportunities grow for people to work they also wish to invest in places
close by to live in. Builders or developers in various regions are now separately
marketing each space. Even home loan companies and banks are independently
marketing the properties they are giving loans. This helps them to guide their
dedicated clientele and ensure the marketing trends remain closely monitored for
future development.

They generally have customer relationship executives who are assigned (usually area
wise) to assist customers in making decisions. They do have good knowledge, are
professionals on the job and customers do benefit if they are not very familiar with
various technicalities. Each company has its own marketing device and portfolio to
attract customers.

Nowadays most of real estate focus is on shopping malls and residential complexes.
In some areas down south, the thrust is on IT parks, and corporate offices and resorts.

However, on the other side everyone or every other executive does not feel the real
estate sector in India is being well marketed or managed. Yes, there are some gray
areas, which need to be covered up. For instance, foreigners who wish to invest or

4
firms who are looking at Indian partners are feeling the crunch of bureaucracy and
familial ways of working. This obviously makes it difficult for them to do business.

A proper way is to have real estate marketing with the right professionals. Everyone
wants to cash on the business.

The experience thus gained in this slowdown is invaluable and will serve real estate
strategists for years to come. The various stakeholders in the entire supply chain – the
material manufacturers, developers, property consultants, occupiers, investors and
policy makers, have all emerged stronger and primed than yesteryears. And, if we
have taken our lessons right, ‘caution’ and ‘diligence’ would be the keywords for the
industry in the medium term.

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 INDEX

SR NO TABLE OF CONTENT PAGE NO

CHAPTER -1 INTRODUCTION [8-14]

CHAPTER -2 LITERATURE REVIEW [15-22]

CHAPTER - 3 DATA ANALYSIS AND [23-31]

INTERPRETATION

CHAPTER - 4 FINDINGS [32-35]

SUGGESTIONS AND
CONCLUSION

 BIBLIOGRAPHY [36-37]

 ANNEXURE [38-39]

6
CHAPTER -1

INTRODUCTION

7
 INTRODUTION OF ORGANIZATION

The ‘Venkateshwara Properties’ team offers over 20 years of real estate experience in
real estate sales and all facets of property management.

As an independently owned agency we have an inherent passion for our local area,
strong ties to our community and an intimate understanding of our market. The
quality of our service and the level of care we bestow on our clients set us apart.

We are a close-knit team of enthusiastic and dedicated real estate professionals. We

are always on hand to provide astute insightful advice on all your property needs.

We’re committed to clever, cost effective marketing tailored specifically for you. Our
results speak for themselves and the level of repeat and referral business we receive is
a true testament to the dedication we show to our clients.

Operating with a wide portfolio of listings ensures our sales team can give a truly
exclusive level of service, while the property management team ensures your rentals
are well looked after and make the rental experience for both property owners and
tenants enjoyable.

Our aim is to revolutionize the way the local real estate industry operates, to redefine
the industry, merging a professional client-centered approach with technology and
popular social media to offer a personalized and highly-tailored service to a
discerning clientele.

The company will be customer satisfaction focused and driven. Our goal is to build a
reputation as the market leader in commercial and luxury real estate, and we believe
that we will get there on the strength of our innovative approach, dedicated
professionalism and the unsurpassed quality of our customer service.

Buying or selling a property is a very individual experience, and we are committed to

offering every client the personalized service they deserve in order to form life-long
relationships. We will offer a wide range of products and services to accommodate
your realty needs. Whether you’re looking to buy, sell or lease a dream family home,
a luxury vacation apartment or a suitable building to house a business, we not only
have the sales and rental knowledge to help you make intelligent and informed

8
decisions, but we also have a number of innovative, time-saving tools to help you
narrow down your ideal property from our vast portfolio.

2. OBJECTIVE OF RESEARCH

 To know the concept of Properties Area wise.

 To know the Property Valuation

 To help customers in buying or selling of a property

 To guide buyers in choosing the Home Loans

 To know the NRI Real estate Services

 To know the Sales Promotion and Advertising.

RESEARCH METHODOLOGY

Any activity done without an objective in a mind cannot turn faithful. An objective
provides a specific direction to an activity. Objectives may range from very general to
very specify , but they should be clear enough to point out with responsible accuracy
what researcher wants to achieve through the study and how it will be helpful to the
decision maker in solving the problem.

Each research study has its own specific purpose. It is like to discover to question
through the application of scientific procedure. But the main aim of our research is to
find out the truth that is hidden and which has not been discovered as yet.

9
1. RESEARCH DESIGN

On the basis of theoretical study a research has many types. All of these are
distributed on the nature of research. Some of them are like

1. Descriptive and analytical Research

2. Qualitative and Quantitative Research

Our research is based on descriptive, qualitative and Quantitative research.

Descriptive Research :- Descriptive research includes surveys and facts finding

enquires of different kinds. The major purpose of Descriptive research is description
of the state of affairs as it exists at present. Researcher has no control over the
variables of this type of research.

Qualitative Research: - In our research we need comparison between different

stage and different condition. So this is based on all qualitative data in short,
Qualitative research is especially important in the behavioral science where the aim is
to discover the underline motives of human behavior. Through such research we can
analyze various factors which motivate to people to behave in particular manner or
which make people like or dislike a particular thing.

Quantitative Research: - Quantitative research is based on the measurement of

quantity or amount. It is applicable to phenomena that cab be expressed in terms of
Quantity. So we can use it in our research for collection of all the numerical data.

2. SAMPLING DESIGN:-

“Sample Design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items
for the sample”

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3) SOURCES OF DATA

TYPES OF DATA

A) PRIMARY DATA

B) SECONDRY DATA

A) PRIMARY DATA :-

a) Questionnaire

b) Personal Interview

B) SECONDRY DATA :-

a) Historical data of Real Estate Marketing

b) Online Database

c) Books and Magazines

d) Internet

4) DATA COLLECTION TOOLS

My research is based on qualitative & Quantitative research.

5) METHOD OF DATA COLLECTION

With the help of the Primary Data Collection like questionnaire, interview
schedule and Secondary Data Collection like Online Database , Journal and
Database ,a study of data research is carried out on Real Estate marketing Sector.

6) SAMPLE SIZE

A Sample size of 50 respondents were taken to carry out research.

11
CHAPTER -2

LITERATURE REVIEW

12
 LITERATURE REVIEW

The real estate sector has become a major contributor of an economy’s growth. To
understand the significance of the sector and its implications there have been various
research on real estate industry both in India and abroad. The research are being
conducted to gain more knowledge about the various factors contributing to the
growth of the industry and also to analyze the factors which effect the decision of
investment in the sector. I have tried to study few such research papers to get a better
idea about the current scenario of the real estate sector.

Graeme Newell and Rajeev Kamineni in their research paper assessed the risk-
adjusted performance and portfolio diversification benefits for the real estate markets
(office, retail and residential) of Pune. The real estate markets were found to under-
perform the stock market in India over 1998– 2005, with most markets improving
their performance in more recent years, although there was some loss of portfolio
diversification benefits for office and residential real estate with stocks. Deregulation
of the capital markets and international investment in India is also likely to have a
significant impact on future FDI levels and the growth of real estate funds for real
estate investment in India. They also studied that offshoring in the city like Pune has
created huge demand for better infrastructure. This area of offshoring has significant
real estate investment issues; particularly concerning technology parks, access to
Grade A office space.

They have also concluded that deregulation of the Indian capital markets since 2004,
and less restrictive guidelines for foreign direct investment in real estate in India since
February 2005 have seen significant improvements in the real estate investment
environment in India for both local and international players. This has taken on
increased importance as India significantly expands its economic growth to potentially
be the world’s third largest economy by 2020, and international real estate investors
seek global investment opportunities; particularly in the emerging Asian real estate
markets. The expected development of REITs in India in the next few years will also
expand the real estate investment opportunities available in India.

13
Vandna Singh and Komal (2009) in their research paper found that as the GDP
increases the real estate prices also increases because there is a high degree of Positive
correlation between the real estate prices and GDP. The Real estate prices also
increases with increase in the per capita income as there is high degree of positive
correlation between these two. The FDI into the country affects the real estate FDI
and real estate having a positive correlation leads to the boom in this sector. Increase
in FDI from 2006 to march 2007 is 10%. Earlier it was 16% and in 2008 it is 25%.

The interest rate also affects the real estate prices because it affects the lending and
borrowing by the investors. In residential segment, availability of easy home finance
and rising purchasing power has driven the growth. Builders are launching high-end,
life style residential products to cater to the growing bunch of high net worth
individuals.

They suggested that due to high prices the lower income group is not able to purchase
the land, so govt. should take measures to protect the lower income group. The
investors should analyze the type of land in which they are going to invest and the
potential

Returns from it. Due to lot of investment avenues in real estate in India, fraud cases
are also increasing day by day like in Delhi deconstruction of buildings. Thus careful
measures and laws should be enacted to deal with these types of situations.

Natalija stated that Advantage India: Real estate is one of the fastest growing sectors
in India. Market analysis pegs returns from realty in India at an average of 14%
annually with a tremendous upsurge in commercial real estate on account of the
Indian BPO boom. Lease rentals have been picking up steadily and there is a gaping
demand for quality infrastructure. A significant demand is also likely to be generated
as the outsourcing boom moves into the manufacturing sector. Further, the housing
sector has been growing at an average of 34% annually, while the hospitality industry
witnessed a growth of 10-15% last year.

14
Jim Berry stated that the highest and best use analysis is another component of
property investment analysis, especially in the case of vacant land or deteriorated
property that needs to be redeveloped. Highest and best use is defined as the most
profitable use at which a site can be developed. Thus, highest and best use analysis is
usually carried out for land sites that are acquired for development purposes. A site’s
highest and best use will depend on a number of factors including site physical
characteristics, its location, make up and purchasing power of the population in its
area of influence, competitive projects in its area of influence, market conditions and
prospects at the time of analysis, and other factors. If the land site is zoned in an urban
use, the highest and best use analysis will focus on the feasibility and profitability of
developing the alternative allowable uses.

Future of Real estate in Indian Economy

Analyzing the current scenario there has been various researches forecasting the
future of the real estate industry. According to them the Real Estate potential in India
is vast. The market is expected to grow at 33% through 2005-2010 to US 50 billion as
per Negandhi’s (2007) estimates. Tremendous potential demand along with an
improving regulatory landscape, robust economic growth and gradually improving 27
corporate governance standards of developers makes the real estate market in India
over the next five years highly sustainable. This strong potential demand is expected
to result in an exponential growth in development plans of real estate companies.
According to Negandhi (2007), development is expected to reach 16 billion square
feet across all segments of the real estate market by 2010 The plan ahead seems
sustainable; however it would be unwise to forget the experience of the 1985-93
boom/bust in real estate that has left industry players nervous about when it might
happen again. A paper by Kaiser (1997) examines the possible causes and the
periodicity of such major real estate cycles. The evidence suggests that both periods
of negative returns, (early 1930’s and early 1990’s) were caused by excessive levels of
new construction which caused an inflation spike in the general level of prices,
suggesting a 50- 60 year real estate bust cycle. The paper safely concludes that India
is not likely to witness another bust period for real estate in the

next four decades.

15
The conclusions of Kaiser can be witnessed with the bullishness underlying in the
development proposed by the cumulative strength of the Indian developers.
Historically, Indian real estate companies have undertaken development of 1million-
3million square feet of real estate annually. With strong growth in demand expected
across segments of real estate over the next few years, Desai & Rane (2006) estimate
development plans of real estate companies to rise to 20million- 30million square feet
annually. To sustain these growth levels, the flow of capital into the sector will be
carried out through REITs. REITs is the future of the Indian real estate market. It is
expected to lend the much needed liquidity to developers and allow them to take out
their capital value off ompleted projects for deployment in newer projects. REITs
also serve as an effective vehicle for broader participation by investors in the market.

However, without demand and latent capital adequacy, none of these plans will
materialize effectively for the players in this segment and a good chunk of their
demand and capital is expected in the form of Foreign Direct Investments. The paper
by Henley (2004) compares the performance of India and China in attracting foreign
direct investment (FDI). FDI statistics suggest that India's performance has been
significantly understated but India still falls behind for several reasons such as high
tariff structure, poor physical infrastructure, a regulatory system that is too often not
business friendly etc. Nonetheless, India has displaced USA as the second-most
favored destination for FDI in the world. ASSOCHAM’s (The Associated Chambers
of Commerce and Industry of India) study on Future of Real Estate Investment in
India forecasts that of estimated US$ 60 billion future market size of real estate
business in India, the share of foreign investments will be within the range of US$ 25-
28 billion by 2010.

The overseas investments will also be finding larger space in Indian SEZs and
increasing number of shopping malls that will naturally fatten their share in real estate
market. Indian real estate sector is on boom and this is the right time to invest in
property in India to reap the highest rewards.

In the research paper on Real estate investment trust by KASB securities limited in
Dec 2005 it came to light that since REIT allows indirect investment in real estate for

16
small investors who otherwise could have not had this opportunity. And that it is one
of the vehicles that have single taxation and it also offer low volatility and ease of
liquidity.it was suggested that REITs listed under NBFC should be allowed to invest
in real estate development and acquisition. Exposure limits needed redefinition with
respect to a REIT, REITs should be allowed to borrow.

Regarding Modifications to Income Tax Ordinance it was suggested that

· Gains from sale proceeds of land and or building to a REIT should be tax free;

· REITs should be granted a status of investment scheme formed under NBFC Rules
as a result of which it would be tax exempted.

Changes in Voluntary Pension Rules suggested that Under Voluntary Pension Rules,
pension funds should be allowed to invest in REITs.

Buyers of property from REITs should not be asked source of income;

Though the above recommendations were made however, it was concluded that
the markets will not function smoothly unless the rental yields improve, tenancy laws
are strengthened, official and unofficial pricing issue is settled, paghri system is
abolished, and the time consumed in legal proceedings is reduced.

The ups and down of Real Estate Markets

Dirk Brounen in Dec 2008 said that the Real estate markets around the world have
earned a complicated reputation. On the one hand, real estate markets offer investors a
wide spectrum of profitable investments opportunities, investments that nowadays can
be executed by simply buying shares of stock listed by real estate investment
companies. In the first half of this inaugural address, the boom of these real estate
stocks is discussed. In less than three decades, the listed real estate market developed
into a sector with almost 400 listed firms worldwide, representing a sum aggregate
market capitalization of around one trillion dollars by the end of 2007. Three relevant
lessons regarding these international real estate stocks are discussed in the first fifteen
pages of this booklet, lessons offered by real estate research from the Rotterdam
School of Management. On the other hand, real estate markets are notorious for
attracting entrepreneurs with bad intentions, seeking for opportunities to circumvent
the strong arm of the law. These activities have yielded many headlines in the daily

17
press and have given real estate a gloomy reputation. The dynamics of foreclosure
auction of homes is an example of a source of negative headlines, stressing that the
suboptimal organization of these auctions prohibits distressed sellers from earning a
fair price for their home. In the second part of this address, I focus on an empirical
test of the matter. By analyzing over 700 auctioned homes the dynamics of the auction
system is discussed objectively. This offers a fair view on the problems at hand and
searches for way to improve the system in the near future.

Sales Promotion
Promotion is the final element in the marketing mix. After the nature of product is
decided, its price fixed and the methods of distribution is decided, the manufactures
has to take effective steps in meeting the consumers in the markets. In the present
consumer oriented markets it is the duty of manufacturers to know what is required by
the consumer. It is also their duty to make the customers know where, when, how and
at what prices the products would be available.

Meaning of Promotion

The term promotion is the term and includes mainly three type of sales activity :

1. Mass impersonal selling methods (Advertising).

2. Face to face personal selling (Salesman ship).

3. Activities other than personal selling and advertising such as point of purchase
display (P.O.P.) show and exhibitions, demonstrations and other non securing selling
efforts. This form of activity is called ‘Sales Promotion’.

There are two types of promotion blends:-

18
1. Pull Blend.

2. Push Blend.

Both of these are closely related to the channel of Distribution.

1. A pull blend is one in which mass impersonal, sales efforts are given the greatest
emphasis. The purposes of pull blend to pre-sell to the final consumers. So that they
demand the product at the retail level of distribution. The firm adopting this strategy
would spend more on advertising and sales promotion rather than in personal selling.
These efforts pull down the product from the manufacturer.

2. A push blend emphasizes personal selling. Naturally firms adopting this method
develop a strong sales force at both the distributor and the dealer level. This method
would tend to push the product through the channel of distribution.

Promotion and Selling

The term promotion is very often used as a synonym for selling. But selling is a
narrow term which includes only transfer of title or personal selling. Promotion on the
other hand is broader in its outlook and includes a variety of activities used ultimately
for increasing sales volume.

Promotion and Sales Promotion

Similarly the terms sales promotion cannot be taken to mean what is commonly does.
Sales promotion, is only a part of the promotion. Basically promotion is an "exercise"
in information persecution and influence. Promotion has come to mean the overall co-
ordination of advertising selling, publicity and public relations. Promotion is a helping
function designed to make all other marketing activities more effective and efficient.
But sales promotion as such helps only the selling activity still, there exist same
difference of opinion on the real connection of the term sales promotion.

Acc. to A.H.R. Delons :-

19
"Sales promotion means any step that are taken for the purpose of obtaining or
increasing sales".

Acc. to W.Q. Kelly Opines :-

"Muddled misused misunderstood that is sales promotion Acc. to him the field of
sales promotion as a marketing activity is still vaguely defined and organized.

20
CHAPTER - 3
DATA ANALYSIS AND INTERPRETATION

21
The data Analysis and Interpretation has been carried out with Eight different
parameters which are as follows

1) Age group of Investors

The respondent of the survey were mostly in the age group of 36-45 years i.e. 42%.
Followed by the people in the age group of 45 years and above- 27%. 23% in age
group of 26 to 35 years and the least were people in the age group of 20 to 25 years.
This shows the type of sample that we are analyzing

22
2. Income Level

The above analysis shows that the people covered under the survey mostly included
people from the income group of 6-10 lakhs i.e. 39% , followed by people with
income above 10 lakh- 33% and the remaining were in the category of 3.5 to lakh and
2- 3.5 lakh consisting of 22% and 6% respectively.

23
3. Preferred Investment Option

The above findings show that Real estate is a favored investment option among the
respondent by 36% followed by equity, gold and mutual funds by 34%, 18 % and 12
% respectively. This infers the trust and the interest of the investors in Real estate
sector. People are willing to invest in real estate be it a large investor or small all of
them try to invest in real estate sector in the ways convenient to them.

24
 4. Preferred investment in real estate

The above analysis shows that investors preferred investment option is residential
property by 38% .The next best option being equity shares of real estate companies by
25% followed closely by commercial property with 24% and the least investment is in
REIT with only 13 % respondents investing in it. This analysis clearly shows that
residential property is the most favored investment option amongst the investors. The
above analysis also shows that people are not investing in REIT’s when asked the
reason most the people were not even aware about it.

25
 5. Factors effecting real estate investment decisions

The major factor that effects the investment decision is the Disposable Income of the
investor .which constitutes 28% of the respondents. The prevailing price of the
properties is another important factor it constitutes 22% of the respondents if the price
is too high people avoid purchasing the property and vice versa. Price is the major
determinant factor followed by Bank rate at 18 % as it is very important for people
who are opting for loans from the banks ,as they need to assess whether the
investment is worth paying the interest on the loan or not. Then comes location at
17% followed closely by Government policies holding 12% of the respondents.These
policies are regarding taxes, subsidies, stamp duties , FDI and the like. Economies
condition also effect around 3% respondents.

26
6. Perception about effect of recession

To see the effect of recession on the minds of people I asked them about what
according to them was the effect of recession in the real estate sector in india.31%
respondents said that the projects were delayed .22% said that people would have
stopped purchasing as the recession was effected mainly due to real estate sector and
that it has become a risky option to invest.20% people said that as recession did not
affect the Indian economy at large so it does not affect their investment decision.19%
felt that it was a good time to purchase real estate properties.8% people felt that the
cost should have reduced .

27
7. Preferred time duration of investment

Around 34% people invested for a time period of 5-10 years , followed by 28%
investing for a duration of 3-5 years.23% for long term i.e. for more than 10 years and
15% invested for a time duration of 1- 3 years. This analysis shows that people invest
in real estate for long term which is around 5-10 years.

28
8. Better Future of Real estate

69% respondent feels that the Indian real estate industry has a bright future and will
increase in the coming days. Whereas 20 % of the respondents feel the other way
round. 11% respondents were neutral about the issue and said that the situation will
remain same without any change.

Majority of the respondents are positive about the future of the real estate industry.

29
 CHAPTER - 4
FINDINGS , SUGGESTIONS AND CONCLUSION

30
 FINDINGS AND SUGGESTIONS

Referrals
It has been estimated that in North America, referrals and word-of-mouth
recommendations generate 85% of new business.

In effect, a referral or suggestion is a third party confirmation that the business,–i.e.

the agent–is competent and trustworthy. The challenge for agents is to increase the
number of people who believe that they are sufficiently competent and trustworthy to
recommend them to other people. This reputation for competence and trustworthiness
doesn’t just happen–it has to be earned.

Advertising
Advertising properties listed for sale represent implied endorsements of agents’
competence and trustworthiness. After all, the owners of the properties advertised for
sale must have believed the agents to be competent and trustworthy; otherwise they
would not have hired them to help sell their properties.

Open Houses
Open houses allow real estate agents to showcase their technical expertise and
personal characteristics. By interacting with agents at open houses, prospective clients
can assess individual agents’ competence and trustworthiness and by extension, how
the agent can help them. For prospective clients, it’s like test driving a new car.

Networking
Networking is the most multi-faceted, versatile and effective marketing tool available
to real estate agents. Among other things, it allows them to exchange information and
showcase their trustworthiness. Above all, it also makes it possible to interact with

31
other people, who ideally will like and trust an individual agent well enough to do
business with, and refer others to him or her.

Prospecting
The best way to develop a client base is by well focused prospecting.
Prospecting is an essential marketing strategy. It generates new leads that can be
converted into clients. It also provides the inflow of new clients. These clients will
ultimately become part of the pipeline by contributing repeat and referral business.

A Benefit For All Agents

All real estate agents can benefit from applying the best marketing practices of high
producing agents. Specifically, this means that the key marketing strategies of high
producing agents will help you attract clients.

FINDINGS
• As the GDP increases the real estate prices also increases because there is a high
degree of positive correlation between the real estate prices and GDP.

• Real estate prices also increases with increase in the per capitancy as there is high
degree of positive correlation between these two also.

• The infrastructure of India is also growing day by day so it adds to the better facility
to different sectors which affect the real estate prices.

• The FDI into the country affects the real estate FDI and real estate having a positive
correlation leads to the boom in this sector. Increase in FDI from 2015 to march 2016
is 18%. Earlier it was 15% and in 2017 it is 20%.

• The interest rate also affects the real estate prices because it affects the lending and
borrowing by the investors.

• The growth in the real estate sector is between 25-30% in a residential Sector, 10-
15% in commercial sector and agriculture sector.
• Housing sector constitute 80% real estate in terms of value and 20%
by commercial sector.

32
• In residential segment, availability of easy home finance and rising purchasing
power has driven the growth. Builders are launching high-end, life style residential
products to cater to the growing bunch of high net worth individuals.

• In 2017 the growth of real estate sector is going down due to high inflation and hike
in home loan rates by the banks following the increase in bank rate and SLR by the
RBI

• The outsourcing and IT/ITES industry have contributed to the demand for quality
office-space. The estimated demand from IT/ITES sector alone is expected to be
150mm sq. ft. of space across the major cities by 2020.

CONCLUSION
After studying all the factors of the real estate it can be
concluded that the Real Estate is a very wide concept and it is highly affected by the
macro-economic factors like GDP, FDI, per capital income, Interest rates and
employment in the nation. The most important factor in the case of Real Estate is
location which affects the value and returns from the Real-Estate. India needs a
stronger capital market base for property financing.

The debate on the potential introduction of REITs and real-estate funds points in the
right direction. The introduction of REITs in 2007, will give international investors in
particular a familiar investment vehicle.

Private investors could also enter into indirect investment in real-estate. Although
interest in new projects 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’s, in the end we can say that the investment in Real
Estate in India is a very good investment opportunity. But one should be very careful
while taking decision in this direction due to rising inflation and interest rates. Legal
issues should also be kept in mind while choosing a property.

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BIBLOGRAPHY

WEBSITES :

 www.makaan.com

 www.magicbricks.com

 www.99acres.com

 www.sulekha.com

 www.commonfloor.com

 www.indiaproperty.com

BOOKS :

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