A

PROJECT REPORT

ON

INVESTORS PERCEPTION ABOUT

INVESTING IN REAL ESTATE
FOR THE PARTIAL FULFILLMENT OF THE AWARD OF MASTER OF BUSINESS ADMINISTRATION

SESSION: 2009-2011
Submitted to:
PUNJAB TECHNICAL UNIVERSITY, JALANDHAR

PROJECT GUIDE :~
SUBMITTED BY: ~

Ms. Priya Arora Abu Obaid

LECTURER MBA MBA- Semester III
Roll No. -94982238332
MARKETING

PUNJAB INSTITUTE OF MANAGEMENT AND TECHNOLOGY

MANDI GOBINDGARH

1
 ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Arpit Singh, Manager Marketing &
Mr. Ajay Krishan, Senior Manager Marketing, Unicon Real Estates Pvt. Ltd., Noida, for his
able guidance, continuous support and cooperation throughout my project, without which the
present work would not have been possible.

I would like to thank the entire team of Unicon Real Estates Pvt. Ltd., for their constant help in
the successful completion of my project.

Also, I am thankful to my faculty guide Ms Priya Arora, for her continued guidance and
invaluable encouragement.

2
 DECLARATION

The Director
Punjab Institute of Management and Technology

Mandi Gobindgarh,

I, The undersigned, here by declare that the project entitled

“INVESTORS PERCEPTION ABOUT INVESTING REAL ESTATE” is submitted by
me under the guidance of Lecturer Ms. Priya Arora is my original work.

The information given in this report is based on the data collected by

me during the course of project work .I have not copied any other project
report submitted. Earlier or being submitted this year for a similar purpose.

I understand that any such copying a liable punished in a way that the
university authorities deem fit.

ABU OBAID

3
 CERTIFICATE BY GUIDE

This is to certify that Mr. ABU OBAID, a student of Master of Business Administration, Punjab
Institute of Management & Technology, Mandi Gobindgarh, has worked in UNICON REAL
ESTATES PVT. LTD., under the able guidance and supervision of Arpit Singh, Manager
Marketing & Mr. Ajay Krishnan, Senior Manager Marketing, Unicon Real Estates Pvt. Ltd.
Noida.

The period for which he was on training is from 16/06/2010 to 30/07/2010. This Summer
Internship report has the requisite standard for the partial fulfillment of the Master of Business
Administration. To the best of our knowledge no part of his report has been reproduced from any
other report and the contents are based on original project.

TABLE OF CONTENTS
4
 ►Subject Page No

►Executive Summary 7

►Real Estate in India 8-18

 Growth Drivers of Real Estate
State of the Real Estate market
 FDI in Real Estate
 Growth in Real Estate

► Industry Profile 19-21

►Study of Developers 22-48

►Company Profile 49-52

►Objectives 53

►Research Methodology 54-55

► Analysis and Interpretation 56-71

►Findings 72

►Conclusion 73

►Limitations 74

►Suggestions 75

►Bibliography 76-77
►Annexure 78-81

5
EXECUTIVE SUMMARY

6
 EXECUTIVE SUMMARY

This research work is related to investors research study, titled “INVESTORS PERCEPTION
ABOUT INVESTING IN REAL ESTATE” in National Capital Region.

The research addresses the factors influencing the investor’s decision to allocate resources to real
estate. The survey includes a sample of major investors via a questionnaire. They answered
question about their target real estate allocation, their plans to increase or decrease their
allocation, the major reasons for investing in real estate.

The major empirical findings are:

• Investors have a short history of real estate investment but are currently increasing their
allocation to the real estate, more than Equities, Debt, and Commodities.
• Legal and regularity risk, Hard explore opportunities and Risk of lack of professional
advice are given as the risk involved for real estate investing.
• Despite of developers investing their large part of funds on Entertainment centers like
Shopping Malls, Multiplexes etc. large part of investors prefer to invest in Residential
Projects such as Plots , Group Housing, and Townships.
• Residential Property is gaining as an attractive mode of investment of middle class
people leading to growing demand.

• Despite the billions of money spent on brand advertising, customer’s rate – strength as a
weak influence at best on their purchase decisions.
• The most important factors influencing the real estate allocation decision are statistical
estimates of risk , advice from external consultants and long term historical performance.

During the course of this research work I was provided with an opportunity to interact with the
number of people to receive their responses for questionnaire gave a glimpse of the behaviors of
people and how a researcher should proceed to elicit the responses comfortably. The experience
gathered during this research study will help me to understand the real estate sector and investors
perception about investing in real estate.

7
REAL ESTATE IN INDIA

8
 Real Estate Boom in India:
India, like many other parts of the world is zooming away
in the face of a real estate boom. In India there is a real
estate boom in any direction you wish to see. Whether it is
Bangalore, Pune, Calcutta or Hyderabad or even already
sky high Mumbai and Delhi –the story is the same.
Now apartments are more than just houses. They are
about lifestyle. So while the first housing colonies had
nothing but a security guard, these new housing colonies
have a gym (spa, Jacuzzi, steam), swimming pool (heated,
lined with Italian marble).

Some have a multiplex, shopping complex. There are those which offer a servant entrance. The
next step is creating an ambience. What does on differentiate in a house? So you now have
themed houses.
The concern is that in India, the stock prices are at the height of a boom. As it happens, a
boom in one sector translates into a boom in another sector with invertors rushing to park their
money in a safe place. Also, add the foreign exchange glut in India fuelled to a great extent by
software engineers parking their dollar salaries in real estate (especially near the tech hubs).
Low interest rates (relatively, as compared to 10 years back) over the last few years made
bank loans easier.
Driven by positive growth in the economy, real estate in India is booming. The year 2006
started as on a promising note when the Government of India opened the construction and
development sector in February 2006, and allowed 100 percent foreign direct investment (FDI)
under the ‘automatic route’ in order to spur investment in the vital infrastructure sector. The
government has thrown open the lucrative parts of the Indian reality market to global investors
for the first time.
The relaxation of the FDI ceiling saw big names joining hands with the Delhi based
developments to announce India’s largest FDI in the reality sector. Groups showing interest in
India include major Indian and International Companies.

The development of real estate in India focuses on two primary areas: retail and residential.
• The global real-estate consulting group Knight Frank has ranked 5th in the list of 30
emerging retail markets and predicted an impressive 20 percent growth rate for the
organized retail segment by 2010.
• The organized segment is expected to grow from a mere 2 percent to 20 percent by the
end of the decade, it said.

The boom is also attracting interest from foreign players. In recent years, non-resident Indians
(NRIs) have played a very important role in transforming the Indian real estate market. Opening–
up of the Indian economy provided them with new opportunities and they have shown a great
deal of confidence in the changed set up. Since 1994, NRIs have invested in sizeable amount, of

9
which a big chunk has found its way into the property market. Anticipation by NRIs has brought
about a lot of maturity in the market which in the past had solely banked on the actual users.

1. COMMERCIAL
• India has been hit by the global outsourcing
waves. If IT/ITES continues to grow at the
estimated growth rate for the next four years
it will be an approximately US$24 bn.
Industry by FY 2010.
• NASSCOM-MCKINSEY surveys have
predicted that the ITES sector in India will
provide jobs to 1.1mn sq. ft. of office space.
• Over the course of the past five to ten years,
the major occupier of the commercial real
estate has been the IT/ITES/BPO sector as
opposed to banking, finance,
multinational, corporate and large Indian manufacturing companies. Almost 80
percent of demand for commercial space today is thanks to the above sector.
• Accordingly, a shift is happening towards cheaper and larger locations in the suburbs
closer to dense population pockets supplying quality workforce at competitive rates.
Thus, a gradual decline in the status of the CBDs, which is already experiencing vacancy
rates of over 20-30 percent, is expected over time.
• More and more developers are building quality built-to suit space catering to the end user
in the suburbs. In a nutshell, there will be a huge demand for commercial space in
suburban area of major cities.
• Most developers are providing a more efficient and better class of product than they were
five years ago. At cheaper costs. These products are of a global standard and developers
are using new age technologies in order to reduce delivery times.
• The capital values of commercial properties have moved up by 10-12 percent over the
past 12 months, even though the rental values have remained the same. This disparity will
cease once the interest rates moving upwards.
• Looking into the future, we expect supply to continue to match demand. A number of
developers will put up quality products on to the market, thereby stabilizing rental
property rates.

10
2. RESIDENTIAL

• Residential property is gaining ground as

an attractive mode of investing for
middle-class people leading to growing
demand.

• The residential market has picked up

due to the lower interest rates coupled
with easy accessibility to loans.

• The increase in prices of residential

properties nationally has been 15-20
percent. This can be largely attributed to the increase in the land prices as well as the
input costs.

• With the shifting of more and more companies and offices to the suburbs, growth in the
suburban residential real estate market has also been witnessed. Lavish townships with
good quality construction with luxurious amenities and facilities are now coming up.

• The demand for good housing is evident, as most of these developments have witnessed a
pre-construction booking of 75-80 percent and even 100 percent in some cases, both
by end users and investors.

• There is the total national housing shortage of 41 mn. Units. Out of the above, close to 80
percent consists of housing for the weaker section.

• A study has shown that 50 percent of the formal housing in the country is accessed
through the rental route and not ownership. It is thus pertinent to put in place an
environment to encourage more stock of rental housing.

11
 3. Retail
• Retail is considered the world’s largest private industry with total sales of US$ 6.6tn.
With close to 12 mn. Outlets, India has the largest outlet density in the world. The
consumers demand for international quality ambience, convenience and infrastructure
will drive future growth.

• Retailing is becoming the next boom industry with organized retail being a market of
US$6 bn. It is due to the growing eight fold in the coming decade. It is expected that the
share of modern retail shall grow from about 8 percent in 2007 to 20 percent by the end
of the decade.

• The total retail industry growing exponentially at 8.5 percent per annum and consumer
spending has increased at 12 percent per annum during the last 3 years.

• The Indian consumer today is evolving. The increased purchasing power of the urban
educated middle class, more exposure to brands and products through television and
foreign trips, and the growing number of working couples has led to a change in buying
habits and thus the retail scope in India today about 50 mn. Sq. ft. of organized retail
space will be coming up across the country by the year 2010.

• However, the real estate industry is at a critical point. Currently, we have a depleting pool
of retailers and successful department store chains with a lot of shopping center space
competing for the same tenants. This accordingly, creates an opportunity for foreign
retailers. There is a dire need to allow 100 percent in retailing.

• Developers who can show most ingenuity in creating an interesting environment, both
from a shopping and an experimental standing point, will be the ones that will create an
asset that will withstand the test of times.

• A notable trend in the market is the development of integrated retail-cum-entertainment

centers. An increasing number of retailers are focusing on malls as opposed to stand-
alone developments. Several factors determine a retailer’s attraction towards a particular
mall. A recent survey revealed that, for a retailer, the most important parameters in
selecting a mall as a potential allocation are:

1. Consumer demographics
2. Developer reputation
3. Cost of leasing space
4. Quality of other tenants
5. Car parking
6. Support facilities
7. Infrastructure

12
 8. Maintenance

Whilst the number of shopping malls has seen a surge in the recent past, the future development
is now focused on providing for leisure activities as well. A significant number of multiplexes
are being developed as an integral part of retail malls, along with amenities such as food courts
and video game parlors. PVR, INOX, Satyam Cineplex’s and Shringar Films are diving the
multiplex business expansion across the nation while Appu Ghar, The Delhi Based Amusement
Park, has plans of starting operations in at least two new locations.

The next step in the evolution of malls in India is specialty malls and theme malls that cater
to a specific target audience. These would include wedding malls, auto malls, home
accessories and life style malls, factory outlet malls, etc.

Some of these chains after setting up in the metros are already looking to foray in to the non-
metros to reach out to a broader customer base.

Source: Knight Frank Research

13
 GROWTH DRIVERS OF REAL ESTATE

• The robust growth in IT sector has pumped up the growth in Real

Estate Sector. An estimated 70% of new construction for offices is to cater
to the IT Sector. Examples are cities like Pune and Gurgaon where real
estate activity is primarily the offshoot of the IT sector revolution in India
and the dot com boom.

• Retail Sector is also growing at a fast pace. Currently, only 5% of the

retail sector is organized. Remaining 95% is still unorganized and offers
huge opportunities for growth. India is ranked 5th in the list of 30
emerging retail markets and 20% annual growth rate is predicted for the
Organized Retail segment by 2010.

• Spiraling demand for hotel rooms has brought boom in Hotel Industry.
India has been voted among the top 5 tourist destinations in the world by
the Conde Nast Traveler’s Guide. The demand-supply imbalance will
continue to be over 50% beyond 2010, there being excess demand. This
can generate substantial business for the real estate industry where more
and more players are joining the fray to develop hotels.

• Booming economy with the GDP clocking 8% CAGR

• Rapid Urbanization

→ Urban Population expected to touch 590 million by 2030

→ Decreasing Household size: Average H/h size fell from 5.4 in

1981 to 5.1 in 2000 and is going to fall further

→ Increasing working age population (Almost 64% in 16-64 age

group)

14
• Market Structure

→ A lot of corporatisation has taken place in the last 2-3 years and
the sector has seen entry of giant corporate houses

→ Regional players are expanding to achieve a Pan-India presence

State of the Real Estate market

• The sector remains largely urban & semi-urban and unorganized to
some extent. Though it has now begun to trickle down to the rural
areas. The sector is now incorporating a lot of professionalism and
corporatization and is now being run in a more organized and
transparent manner.

• The sector has recently shown a huge growth over the past decade
with action in all spaces; residential, commercial, retail, hospitality &
SEZ. However, all this activity has lead to skyrocketing of prices. Many,
including the FIIs’, feel that prices are high and that a correction is in
store.

• A key question: Is relative pricing predominantly set by investors or

end users? Industry sources say that end user buying has gradually
increased over the last ten years (to 60+% from 35%). The real estate
boom was fuelled by the increased liquidity and money supply in the
market. There was a shortage of real estate and the investors saw this
as an attractive investment opportunity to park their excess funds.

15
 Investors invested huge sums of money to cash in on the rising prices
of real estate. This is increasing demand. But prices faced a downward
pressure when the properties were ready for delivery as the end users
were limited. This lead to a situation of excess supply at the existing
rates, eventually leading to a correction in prices.

• Entry of quality foreign developers are offering much needed

competition and is further improving the already improved quality of
residential and office offerings that mostly come to the end user from
less than a handful of Indian developers.

• The surprising ignorance of basic tenets of urban planning in our cities

is a major hurdle being faced by developers who have to bear the
responsibility of developing basic infrastructural amenities in and
around their projects. This situation exists across all Tier-1, Tier-2 and
Tier-3 cities.

16
 FDI in Real Estate
Till recently, FDI in real estate was restricted to development of industrial
parks, hotels, integrated townships and SEZ’s. On March 3, 2005,
Government of India replaced the integrated township policy to permit FDI
up to 100% in townships, housing, built-up infrastructure & construction -
development projects, under automatic route.

• FDI is now permitted in :

17
 → Townships

→ Housing

→ Commercial premises

→ Hotels

→ Resorts

→ Hospitals

→ Industrial parks

→ Resorts

→ Hospitals

→ Educational institutions

→ Recreational facilities

→ SEZ’s etc.

• 100% FDI is allowed under automatic route in townships,

housing, built-up infrastructure and construction development
projects including (but not restricted to) housing, commercial
premises, hotels, resorts, hospitals, educational institutions,
recreational facilities and regional level infrastructure

• FDI up to 51% is allowed through FIPB (Foreign Investment

Promotion Board) route in single brand retail shops.

Growth in Real Estate

18
• 1.1% of the GDP constitutes FDI in Real Estate Sector.

• Return in India range from 12-15% compared to 3-4% in advance

countries.

• Merrill Lynch forecasts that Indian Real Estate Sector shall grow from
US 12Billion in 2005 to US $ 90 Billion by 2015.

• US $ 320 Billion investment is required in next 5 years in

infrastructures.

• Real Estate Sector is registering an annual growth rate of 30%

Investment of US $ 16 billion expected over the next 5 to 6 years.

• Credit to the Housing Sector has continued to be strong and benefited

from low interest rates and incentives.

• According to AT KEARNY, India is the 2nd most attractive destination for

FDI and the best location for off shoring business.

19
Industry profile

20
Industry profile

India, like many other parts of the world is zooming away in the face of a real estate boom. In
India there is a real estate boom in any direction you wish to see. Whether it is Bangalore, Pune,
Calcutta or Chennai or Hyderabad or even already sky high Mumbai or Delhi – the story
is same.

Now apartments are more than just houses. They are about lifestyle. So while the first
housing colonies had nothing but a security guard, these new housing colonies have a gym (spa,
Jacuzzi, steam), swimming pool (heated, lined with Italian marble) some have a multiplex,
shopping complex. There are those which offer a servant entrance. The next step is creating an
ambience. What does one differentiate in a house? So you now have themed houses.

The concern is that in India, the stock prices are at the height of a boom. As it happens, a boom
in one sector translates into a boom in another sector with invertors rushing to park their money
in a safe place. Also, add the foreign exchange glut in India fuelled to a great extent by software
engineers parking their dollar salaries in real estate (especially near the tech hubs). Low
interest rates (relatively, as compared to 10 years back) over the last few years made bank
loans easier.

Driven by positive growth in the economy, real estate in India is booming. The year2005started
as on a promising note when the Government of India opened the construction and
development sector and allowed 100 percent foreign direct investment (FDI) under the
‘automatic route’ in order to spur investment in the vital infrastructure sector. The government
has thrown open the lucrative parts of the Indian reality market to global investors for the first
time.

The relaxation of the FDI ceiling saw big names joining hands with the Delhi based
developments to announce India’s largest FDI in the reality sector. Groups showing interest in
India include major Indian and International Companies.

With property boom spreading in all directions, real estate in India is touching new heights.
However, the growth also depends on the policies adopted by the government to facilitate
investments mainly in the economic and industrial sector. The new stand adopted by Indian
government regarding foreign direct investment (FDI) policies has encouraged an increasing
number of countries to invest in Indian Properties.

India has displaced US as the second-most favored destination for FDI in the world. As the
investment scenario in India changes, India which has attracted more than three times foreign
investment at US$ 7.96 billion during the first half of 2005-06 fiscal, as against US$ 2.38 billion
during the corresponding period of 2004-05, making India amongst the "dominant host
countries" for FDI in Asia and the Pacific (APAC).

21
The positive outlook of Indian government is the key factor behind the sudden rise of the Indian
Real Estate sector - the second largest employer after agriculture in India. This budding sector is
today witnessing development in all area such as - residential, retail and commercial in metros of
India such as Mumbai, Delhi & NCR, Kolkata and Chennai. Easier access to bank loans and
higher earnings are some of the pivotal reasons behind the sudden jump in Indian real estate.

Why Invest In Indian Real Estate?

Flying high on the wings of booming real estate, property in India has become a dream for every
potential investor looking forward to dig profits. All are eyeing Indian property market for a
wide variety of reasons:

• It’s ever growing economy which is on a continuous rise with 8.1 percent increase
witnessed in the last financial year. The boom in economy increases purchasing power of
its people and creates demand for real estate sector.
• India is going to produce an estimated 2 million new graduates from various Indian
universities during this year, creating demand for 100 million square feet of office and
industrial space.
• Presence of a large number of Fortune 500 and other reputed companies will attract more
companies to initiate their operational bases in India thus creating more demand for
corporate space.
• Real estate investments in India yield huge dividends. 70 percent of foreign investors in
India are making profits and another 12 percent are breaking even.
• Apart from IT, ITES and Business Process Outsourcing (BPO) India has shown its
expertise in sectors like auto-components, chemicals, apparels, pharmaceuticals and
jewellery, where it can match the best in the world. These positive attributes of India is
definitely going to attract more foreign investors in the near future.

The relaxed FDI rules implemented by India last year has invited more foreign investors and real
estate in India is seemingly the most lucrative ground at present. The revised investor friendly
policies allowed foreigners to own property, and dropped the minimum size for housing estates
built with foreign capital to 25 acres (10 hectares) from 100 acres (40 hectares). With this sudden
change in investment policies, the overseas firms can now put up commercial buildings as long
as the projects surpass 50,000 square meters (538,200 square feet) of floor space.

Indian real estate sector is on boom and this is the right time to invest in property in India to reap
the highest rewards.

22
STUDY OF DEVELOPERS

23
THE DEVELOPER

DLF

UNITECH

OMAXE LIMITED

SOBHA DEVELOPERS

PARSVNATH DEVELOPERS

24
DLF

Company background

→ DLF is India’s largest listed real estate developer, with ~224mn

sq. ft. of completed development (including plots) since 1949

→ Pan India presence with strong execution capabilities

 Developed 22 urban colonies/ integrated townships over
the last 6 decades, including DLF City, a 3,000-acre project in
Gurgaon

Key Highlights

→ Land reserves of >16,000 acres (estimated

developable area of ~751mn sq. ft.) spread across 32 cities - Avg.
cost: Rs.314/sq. ft.
 92% of land reserves owned, with 8% tied up as JV/ JDAs

→ Strong execution with under construction projects of ~62mn

sq ft

→ Acceleration of cash flows through sale of under

construction properties to DLF Assets (50-80% of comm. assets),
PE, listing of S-REIT planned.

 DLF Office Trust (DOT) = Planned Singapore REIT = Early

project exit = Faster capital Churn = Reinvestment in high
RoE land banking
→ Major thrust on mid-income housing - Recently launched
projects in New
Gurgaon, Chennai, Indore & Kolkata

25
  Mid segment contributed >95% of residential area
sold in FY08
→ JVs with strategic partners to augment
execution capability
 Lang O’Rourke - Construction, WSP - Design & engineering,
 Feedback Ventures - Project management & Nakheel - SEZ
development

Key risk factors

→ Portfolio of largely developing

assets = Risk of delays in DOT/ non-compression of cap rates

→ Multi fold jump in development

activity = Execution challenges

→ High levels of debtors = Delayed

cash flows = High monitoring required.
Strengths & Opportunities

• Balanced development approach

→ Short term: High end city centric projects (luxury housing,

high end commercial & retail) with a ~1-3 year time frame

 High land cost; Relatively high visibility of cash flows

→ Long term: Mid segment townships/ SEZs (incl. all verticals)

on outskirts/ Tier II & III cities with a >4 year time frame

 Low land cost; cash flows over a longer gestation

period

• Accelerating its cash flows

→ Sale of commercial/retail assets via REIT structure (planned listing

26
 of DLF Office Trust (DOT) in FY09)

 DOT to raise ~USD 1-1.5bn for purchase of 10.6mn sq. ft.

from DLF Assets Ltd. (of which ~3.2mn completed)

 Sale of 49% stake in 8 township projects to Merrill Lynch

(7) & Brahma Investments (1) for Rs.16.75bn

→ Early exit = Faster capital churn = Redeployment of funds into

further land banking (higher RoE business)

• Augmenting its execution capabilities

→ Exclusive tie up with Lang O’Rourke (50:50 construction JV) for

planned scale up from current levels

 ~37mn sq. ft. under construction by DLF-LOR JV

 Other tie ups: WSP - design & engineering, Feedback

Ventures - Project mgmt

• Foraying into New Verticals

→ Strategic tie ups for diversification into varied businesses

 Nakheel - SEZ development;

 Hilton - Hospitality;

 Pramerica - Asset management;

 Fraport AG - Airport development & management;

 Prudential Insurance - Life insurance;

• High quality developer

→ Credited with developing India’s largest

integrated private township (DLF City, Gurgaon)

 Leveraging the same to command premium prices across

segments and geographies

27
 → Land reserves of >16,000acres (~751mn sq. ft.) @
low cost of ~ Rs.314/psf across 32 cities

 ~79% of land bank in metros (46%) / Super

metros (33%)

 92% of the land bank owned, with 8% tied up

through JV/JDAs

• Diversifying itself further

→ Segments - Commercial - 19% ;

Residential - 66%; Retail - 15%
→ Near term focus on commercial and office
segment
 Large portfolio of REIT able assets
to help churn capital faster

→ New focus on mid-market

housing (Rs.3mn – Rs.6mn) leading to a steady state delivery of
~20-25mn sq. ft. p.a. by FY10E.

• Strong balance sheet size

→ Strong holding power enabling acquisition of land during

downturns and inventory holding capacity during cyclicality

 Ability to aggregate land from multiple sellers at low costs

→ Economies of scale: Bulk purchasing capabilities for

acquisition of raw materials/ better use of its construction
technology.

• Strong execution skills

→ India’s largest real estate developer with ~230mn sq. ft.

28
 (including ~195mn of plots) of completed development

 ~62mn sq. ft. currently under various stages of

development (commercial: 68%; retail: 20%; residential: 12%)

→ Planned annual steady delivery of ~40-45mn sq. ft. by

FY11E
 ~10-12mn commercial, ~8-10mn retail, ~2-2.5mn high-
end luxury residential & ~20mn of mid-segment housing

Threats & Weaknesses

• Sale to DLF Assets Ltd (DAL) formed ~40% of total sales in FY08

→ Delay in listing of DLF Office Trust (DOT) on the Singapore

exchange lead to liquidity crunch impacting ability of DAL to
purchase assets from DLF Ltd.

• High amount of receivables

→ While DLF has recorded an unprecedented rise in sales in

FY08, it has come at the cost of a huge increase in receivables to
Rs.79bn (Rs.15bn in FY07)
 Incremental debtors in FY08 upwards of Rs.64bn (Rs.79bn
less opening balance of Rs.15bn)

 Receivables from DAL comprise only Rs.19bn of total/

Rs.100bn of incremental sales in FY08

• Execution risk

→ Significant challenges in scaling up execution capabilities

to reach desired steady state delivery of ~40-45mn sq. ft. per

29
 annum.
 Entry into newer geographies further augments
challenges ahead.

 While its joint ventures with Lang O’Rourke, Nakheel,

WSP and Feedback will offer considerable assistance in its
scale up, the same will be needed to be monitored on a
consistent basis.

• Asset/ Business Cycle Risk

→ Current unsustainably high prices expose DLF to

an asset cycle risk, as any fall in prices would have a significant
impact on its profitability.
 Sentiment effect = Further slowdown in
sales = Inventory build up

DLF presently has its land bank in 31 different cities, through with a small presence (less than
100 acres) in 20 of these. In addition to 574 mn Sq. ft. land bank, DLF has 23 super luxury hotel
sites, a golf course and clubs.

30
Too large dependence on Gurgaon:
The total land bank of 10,225 acres is highly skewed in favors of Gurgaon and to some extent
Kolkata too. DLF has approximately 72 percent of its total land bank in Gurgaon (46 percent)
and in Kolkata (23 percent) together.

UNITECH

Company background

→ Started in 1972, Unitech is a leading player in

the NCR & Kolkata markets, with plans to establish a strong
presence across Mumbai, Chennai, Vizag, Agra, Varanasi and
other growing cities.

Key Highlights

→ Large land reserves of ~13,758 acres (~700mn

sq. ft.)

 Diversified project portfolio which includes development of

residential, commercial, retail, hospitality and SEZ projects.

→ Recent foray into lucrative Mumbai market by acquiring a 50%

stake in a slum rehab project of ~8mn sq. ft. (97 acres).
 Unitech has tied up ~300+ acres of land in Mumbai, which
is expected to be formally disclosed once finalized.

→ NKID project finally gets off the ground.

 1st tranche of 957 acres (near Kolkata)

transferred to Unitech with expectations of ~1,650 acres to
be transferred shortly.

31
 → Execution acumen displayed by strong
growth in area developed.

 1.56 mn sq. ft. in FY’05 to 7.15 mn

sq.ft. in FY’07 -CAGR of 114%

 ~55mn sq. ft. of area under

development currently.

→ Multiple revenue streams

from development activity, sale of projects to Unitech Corporate
Park, investment mgmt. fees and carry.

 Planned listing of
Unitech Office Trust (UOT) in Singapore.

→ Major presence planned in other segments as well.

 Hospitality: 28 properties with ~5,000 rooms

 In-principle approval (10,000 acre SEZ) in Haryana & West

Bengal

Key risk factors

→ Delays in UOT listing + Inability to raise funds in parent

company = Strap liquidity = delaying projects and stretching
balance sheets

→ Scale up + pan-India presence = Significant execution

challenges

→ Significant portion of revenue from longer gestation

projects

32
Strengths & Opportunities

• Low risk/ high return model

→ Focus on residential projects (80% of land bank) = Low

working capital requirements
 Acquisition of land on outskirts of cities = Phased
developments = Low price volatility + steady appreciation

 Land acquisition preferred from govt. sources = Low title

risk

• Acceleration of cash flows

→ Sale of under construction projects to Unitech Corporate

Parks (UCP) to monetize projects early on.

→ Plans to list a business trust (UOT) in Singapore in H1CY08

 UCP and Unitech to jointly sell projects to UOT

→ Plans to list other REITs across retail &

hospitality segments

→ Contribution from fee income to increase going

forward

Land bank

→ Entry into lucrative Mumbai market by acquiring a 50%

stake in Rohan Builders, a developer with slum rehab expertise

 Currently land bank of 97 acres in prime suburban Mumbai

disclosed; further ~300 acres disclosure expected

33
 → Large township projects to kick off shortly
 Vizag Knowledge City: 1,750 acre (~102mn) township

° Land yet to be transferred to Unitech.

 New Kolkata International Development (NKID):

° First tranche of 957 acres transferred by government

- further 1,650 acres to be received in next few weeks.

° 12,500 acres transferred to NKID for Petro Chem SEZ

at Naya Char

 Also 1 of 19 short listed players for Dharavi project

• Diversification into telecom

→ Telecom license for mobile services in all 22 telecom circles

 Purely a financial investment, to partner with an

international operator

 Start up spectrum allotted in Orissa to start mobile services

• Large scale of operations

→ Experience in execution of large projects better positions it

to successfully implement new projects

→ Management’s ability to identify and procure land parcels in

strategic locations from multiple sellers has helped Unitech
establish its footprint across the country - currently present in
~15+ cities
High quality land bank

34
 → Substantial proportion of land bank acquired from
government- hence no title/ zoning risks

 These acquisitions have an added advantage in terms of

soft (deferred) payment terms provided by the government

→ Land acquisition is focused on the suburban areas of major

cities in order to efficiently diversify its presence

→ Focused on undertaking large mixed-use projects in high

growing suburban areas of
major cities
• Strong execution capabilities

→ To enhance its execution capacity, Unitech has partnered

with internationally acclaimed architects and design consultants

 Callison Inc (USA), RMJM (UK), FORREC (Canada), RSP

(Singapore), HOK (USA)

→ Further, its ability to work and effectively liaise with

government agencies ensures timely completion of its projects

• Efficient capital allocation

→ Investing in high value added segment of the real estate

chain (acquisition and aggregation of land)

→ Focus on capital efficient segment residential segment

→ Outright sale of commercial/retail assets to allocate capital

efficiently.

35
• Multiple revenue streams

→ Development profits from real estate projects

 Profit from sale of projects undertaken by the company

(mostly residential projects and plot sales)

 Lease income from commercial/ retail/ hospitality projects

→ Sale of properties to Unitech Corporate Park Plc (UCP)

 Early exit from sale of under construction projects to

Unitech Corporate Parks Plc = Cash flows upfront for further
re-investments

 Sale through SPV route in pre-identified projects to further

help in churning capital faster
→ Investment management & performance Fees

→ Telecom foray - plans to off load ~35% to a strategic foreign

partner

36
Threats & Weaknesses

• Paucity of Funds

→ Private equity at SPV level critical for achieving planned

execution.

→ Delay in UOT listing + Inability of company to raise funds

at the parent level = Strap liquidity = Delaying projects and
stretching balance sheets further.

• Long gestation projects

→ Significant portion of revenue expected from its larger

township/ SEZ projects at city outskirts

 Long term execution = Lower visibility as compared to

shorter city centric projects.

• Execution risk

→ Multifold jump in its planned development activity in new

geographies

 In addition to an aggressive development plan,

Unitech is also expanding into newer markets where it may
not have the same execution expertise as in its home turf.

• Asset/ Business Cycle Risk

→ Current unsustainably high prices expose Unitech to an

asset cycle risk, as any fall in prices would have a significant
impact on its profitability.

37
 Sentiment effect = Further
slowdown in sales= Inventory buildup

38
The Rs. 1600crores Unitech Group is one of the Major Township Planning and real estate
development companies in India and has a diverse business portfolio of heavy construction,
leisure and entertainment projects, hospitality business and residential property developments.

After playing second fiddle to DLF in Gurgaon, the low-profile Unitech Group is gradually
asserting itself in the real estate market of the national capital region. In May 2006, in an upset of
sorts, Unitech got the better of DLF by grabbing 345 acres of prime land in Noida for whopping
Rs. 1582 crores. Unitech has a land bank of 10500 acres whose breakdown is shown below and
its future plans are of 500m sq ft for the year 2008-09 for which they need huge amount of
funding.

Unitech Builder plans to use the Noida land to make 4000 top-of-the-line apartments priced at
Rs. 2 crores (Rs. 20 million) each. The investment required to build this dream residential
project: Rs. 3000 crores (Rs. 30 billion). Besides inking this mega deal, Unitech has been on a
land-buying spread across the country – from Gurgaon to Kolkata, Kochi, Hyderabad and
Chennai – to establish a pan-Indian presence. In the last few months, the Group has created a
land of over 8,000 acres.

39
PARSVNATH

Parsvnath developers announced that they would invest Rs. 1600 crores over the next three
years to construct a metro station cum shopping mall near the Commonwealth Games Village
in the National Capital. The metro station cum shopping mall is spread over 7.3 acres and about
3.65lakh sq. ft. of retail space would be developed. This will be the 12th mall which the Parsvnath
will develop at metro stations, owned by Delhi Metro Railway Station Corporation, a building
operator transfer basis.

Parsvnath projects cover saleable area of 134 million sq. ft, including owned land development
rights; this does not include land owned in SEZ business. Ongoing projects are spread over 17
states and 46 cities.

Upcoming No. of Saleable Land Development Total Total Cost

Projects Projects Area Cost & Cost in in US$
Construction Rupees
Cost

Residential 31 32.88 1344.9 3978.32 5323.3 1183

Commercial 21 4.91 795.68 800.12 1595.8 354.62

Integrated 21 86.06 1121.0 7405.8 8526.8 1894.8

Township

IT Park 4 6 4.55 915 919 204

120
DMCR 6 1.46 276.64 260 536

Hotels 17 2.69 247.31 627 875 200

Total 100 134 3790 14000 18000 4000

40
Projects under Development

41
Omaxe Limited

The company was originally set up as Omaxe Builders Private limited in

1989, promoted by Shri. Rohtas Goel, the founder, to undertake construction
& contracting business. The company further changed its constitution to a
limited company known as Omaxe Construction Ltd., in 1999. The name of
the company has now changed to OMAXE LTD from 2006.

The company began life as a civil construction and contracting company, has
successfully executed more than 120 prestigious Industrial, Institutional,
Commercial, Residential and Hospital construction projects.

Strengths & Opportunities:

• Strong construction background and execution skills

→ Omaxe has been into constructing and contracting

businesses for the past 18 years. The company was founded as a
civil construction and contracting organization in 1989, which
subsequently diversified its business in 2001, to focus on real
estate.
→ As on March 31, 2007, it has completed more than 120
construction projects and 10 real estate projects, including 7
Group Housing schemes, (GHS), one integrated township, and 2
commercial projects covering an area of 5.13 million sq ft.

• Extensive owned land bank

→ As of FY07 end, Omaxe had extensive land reserves ~3,255

acres, of which, 3,096 acres were under development or under

42
 various stages of approval for development, representing ~150
mn sq. ft. of saleable area.
→ Out of this total land bank, Omaxe owns 82% directly and the
remaining through JVs and subsidiaries. This mitigates risks
associated with any possible default in the company’s land
acquisition.

• Focus on Tier 2 and Tier 3 cities

→ Nearly ~69% of Omaxe’s land is in Tier-2 and Tier -3 cities

that are estimated to drive India’s investment and growth phase
owing to their huge unexplored potential. Jaipur (14 mn sq. ft.,
9% of total saleable area), Raipur (14 mn sq. ft., 9% of total
saleable area), Patiala (12 mn sq. ft, 8% of total saleable area),
and Indore (10 mn sq. ft., 7% of total saleable area) are the key
cities where Omaxe has considerable land reserves.

• Strong Brand image

→ Omaxe has been in the construction industry for over 18 years

and has completed more than 120 construction projects. By
delivering projects in timely manner, Omaxe has developed a
reputation amongst its customers of being a quality developer.
→ Omaxe also has a strong marketing network of more than 800
business associates. These factors enable help Omaxe to have a
high visibility and a competitive advantage over its competitors.

• Diversified across various verticals

43
 → Omaxe has projects and land reserves spread across 32
cities and 11states in India. The company focuses on developing
residential and commercial real-estate projects ranging from
integrated townships, group housing and retail and other
commercial properties, hotels, information technology and bio-
tech parks to special economic zones (SEZ).
→ Omaxe’s wholly owned subsidiary M/s Eden Buildcon Pvt
Limited has recently bagged a 25 acre premium plot in
Hyderabad where it has plans for multi-purpose development.
Omaxe has also forayed in SEZ development and signed a MOU
with Government of Rajasthan for 5000 hectare SEZ in Alwar
District. Therefore Omaxe has a strong business model with
presence across all verticals.

• Diversification of portfolio and innovation

→ Omaxe’s project portfolio primarily comprises residential

and commercial segments. As on March 31, 2007, townships
[including sale of residential (GHS and Villas)], commercial plots,
and group housing schemes constitute 73%, 20% and 7% of
developed area respectively.
→ Going forward, Omaxe is expected to be engaged in the
development and sale of townships (49.5% of land bank),
residential properties (47% of land bank), and sale/lease of
commercial properties (3% of land bank). It has also entered into
hotel business (0.5% of land bank) and intends to enter into SEZs
and IT parks.
→ The sale of plots helps the company to manage its working
capital requirements. Sale of residential properties gives it free

44
 cash flows, which in turn, allows leasing out of commercial
properties for stable future income.
→ Omaxe has a well-diversified business model and is into
development of all types of real estate such as residential
houses, commercial complexes, retail, integrated townships and
hotels. This spread has provided the company opportunity for
both growth and risk mitigation. Omaxe is one of the first few
developers to conceptualize and develop theme malls in
northern India.
→ Omaxe is also entering into key arrangements with
strategic partners to enhance the real estate development
business. The company has entered into public-private
participation arrangements with the Patiala Urban Planning and
Developing Authority to develop an integrated township at
Patiala over an area of 336.5 acres.

• Foray into Infrastructure

→ Omaxe has entered the lucrative infrastructure segment in

the third quarter 2008 by forming a consortium with GVK power
& infrastructure limited and Nagarjuna construction Company
limited.
→ The consortium has bid for the 8-lane Ganga Expressway
project from Greater Noida to Ghazipur-Ballia on Public Private
Partnership model.
→ It has also bid for institutional and residential development
of vacant land admeasuring 20.21 acres situated at Andhra
Pradesh Bhavan, New Delhi, on Design, Finance, Build and
Recover basis under Public Private Partnership (PPP) model.
→ Omaxe has also bid for revamping Udaipur Airport

45
Threats & Weaknesses

• Execution challenge

→ Till FY07 end, Omaxe has delivered 5.13 mn sq. ft. of land
and aims to develop another ~150 mn sq. ft. over next 5-6
years.
→ Though the company has the execution capabilities and
will be able to deliver the same, but the timely completion of
these projects is a strong execution challenge for the company.
Any delay in the execution of projects will put strain on cash
flows and valuation and also will hamper the company’s growth
prospects.

• Regional concentration

→ Historically, NCR has contributed majorly to Omaxe’s total

revenues and is continue to do so. Around 40% of the company’s
total revenues are expected to come from this region, going
forward.
→ This poses a significant regional risk. Any significant
correction in property prices in NCR or any sort of adverse
change in government policies in that region will hurt the
profitability and valuation of the company.

• Interest rate risk

46
 → The interest rates have seen an uptrend during the last
year. Given that a bulk of sales are likely in the middle income
salaried class, any further hike in housing interest rates will lead
to a slowdown in real estate demand and will adversely affect
the sales, profitability, and valuation of the company.

• Limited land Supply and Fast Depleting Land Bank

→ Limited supply of land, increasing competition from

companies like DLF and Unitech and applicable regulations can
result in land price escalation and a further shortage of
developable land. This in turn will affect Omaxe’s business,
prospects, financial condition and results of operations.
→ Omaxe is developing projects on a large part of its land
reserves simultaneously. This would result in Omaxe reserves
depleting faster compared to Omaxe peers. So, a need arises to
replenish the land bank faster.

• No rights over brand name

→ Omaxe does not have intellectual property rights over its

brand name “Omaxe”. It is owned by the CMD of the company,
Mr. Rohtas Goel and the company pays him a royalty for using
the same.

47
• Highly Competitive Sector

→ The real estate sector is competitive and highly

fragmented. Less or low fixed capital requirements and technical
expertise have led to low entry barriers resulting to fierce
competition. This can adversely affect Omaxe’s business
prospects and financial condition.

• Title/Rights to develop land

→ Land reserves of the company include ~1,283 acres of

land, approximately 38% of the total land reserves, on which
development is currently not permitted as the change of land
use certificates for the conversion of agricultural land to land
eligible for real estate development are still pending.
→ Further, some of the land reserves of the company have
irregularities of title, such as non-execution or non registration of
conveyance deeds in respect of 84.82 acres (2.6% of land
reserves), litigation affecting title in respect of 69.07 acres
(2.12% of land reserves), mutation certificates yet to be obtained

48
 on land measuring 108.58 acres (3.33% of land reserves).
Obtaining clear titles and certificates for conversion of land use
will be vital for the company.

Sobha Developers

Company background

→ Incorporated in 1995, Sobha Developers Limited (Sobha) is

amongst south India’s leading real estate developers having
completed ~22mn sq. ft. of construction since inception.

→ Sobha also undertakes contractual construction for key

clients such as Infosys (80%), Dell, HP, Taj etc.

Key Highlights

→ Contractual work in addition to own development helps

Sobha diversify risk, ensuring steady cash flows & profitability.

49
  While a correction in capital values is expected margins
expected to remain steady from increased focus on own
projects

→ Infosys factor = Critical visibility+ brand awareness +

experience

 Experience from execution of Infosys projects in various

cities = Strong brand awareness in new markets early on =
Premium pricing + De-risking from Bangalore market

→ One of the few developers to integrate backwards providing

scalability, timely execution, better margins and focus on quality

 In-house glazing, metal works, wood works, concrete block

making, designing and procurement

→ Significant volume growth expected over the next 3-5yrs

on strength of its large land bank of 4,077 acres, across 10 cities.

Key risk factors

→ Multi fold jump in projects poses an execution challenge

→ Geographical concentration within Bangalore (~40%)

 Setback in the IT/ITeS sector to hamper Sobha’s

development plans in Bangalore (being a IT hub)

→ Multi fold jump in projects poses an execution challenge

50
Strengths & Opportunities

• Shifting focus to own development work

→ Plans to increase share of own real estate projects as against

contractual projects

 Critical land bank of 4,077 acres locked in (development

potential of ~224mn sq. ft.) To be executed over next 10-12
yrs

 To result in higher operating margins = ~35-40% from own

real estate projects as against ~17-20% margins in
contractual projects

• Differentiating itself with high quality of construction

→ Superior execution quality = Strong brand name

 Backwardly integrated to maintain quality

standards within stringent timeframes without dependence on
3rd parties = Premium pricing

 Exploring & adopting new technologies like

Mivan, top down construction, pre fabrication, etc.

• Expanding its reach

→ Expansion to lucrative markets outside of

Karnataka

 Entering cities such as Mysore,

Pune, Kochi, NCR, Trichur (launched), Chennai, Mumbai,
Mangalore, Coimbatore, Jaipur, Goa and Hyderabad

51
  De risking itself from geographical
concentration within Bangalore (~60% of land bank outside
home market of Bangalore)

• Capitalizing on Infosys’ patronage

→ Preferred developer for all

the real estate requirements of Infosys Technologies

 Key catalyst in helping

Sobha establish its mark, improve its visibility to expand its
contractual clientele and build its brand

 Capitalizing on its
preferred status to further its footprint into other cities where
the software giant sets up shop

• High quality & timely execution

→ Sobha is regarded as a high quality developer having

successfully created a brand, by providing world-class structures,
in a time-bound manner

 Allows for higher margins than peers

 Also results in higher amount of presales upon launch

→ Timely delivery further strengthening brand name

 Sobha currently has ~12mn sq. ft. under

construction with ~22mn sq. ft. to be launched over the next
1-2 years.

52
 • Backward integration

→ ‘Backward integration’ enables Sobha to build key competencies

in executing its projects

 In-house glazing, metal works, wood works, concrete block

making, designing and procurement

 Strategy has helped maintain high quality standards

without being dependant on any third party for key products
and services.

• Multiple revenue streams

→ In addition to own development work, regular income from

low risk, high volume contractual projects de-risk Sobha’s from
the asset cycle risk
Threats & Weaknesses

• Bangalore focused

→ As of December 2007, 85% of ongoing and planned

projects located in Bangalore and its outskirts.

 Bangalore market is currently facing an

oversupply situation in some micro markets resulting in a
drying up of transaction volumes.

• IT/ ITeS dependent

53
 → Demand for office space in Bangalore is
highly dependent on the sustainability of the current boom in the
IT sector, which accounts for ~80% of demand.

 The strengthening of the Rupee

against the Dollar, regional slowdown in construction or delay
in infrastructure projects in Bangalore can adversely affect
the financial condition of Sobha.

• Client concentration

→ Substantial portion of Sobha’s contractual projects continues to

come from Infosys.

 Billing to Infosys as a % of total contractual income was

83% in FY’06, 88% in FY’07 and 77% in H1-FY’08.

 Change in Infosys’ expansion plans or shift to lease model

can affect Sobha’s contractual business immensely.

• Asset/ Business Cycle Risk

→ Current unsustainably high prices expose IBREL to an

asset cycle risk, as any fall in prices would have a significant
impact on its profitability.

 Sentiment effect = Further slowdown in sales

= Inventory build up

54
55
 COMPANY PROFILE

Company profile

ABOUT THE COMPANY: HISTORY & BACKGROUND

56
 UNICON is an ISO certified company providing Total Real Estate
Solutions. We have a team of 200 plus professionals operating from
Noida & Gurgaon. We also have our presence in Mumbai, Chandigarh,
Dehradoon and Ghaziabad. It is the commitment and service quality of
this team that we are a great success. We are in business to create
and deliver value to our clients, stakeholders and also to our own
people. The ideology of our service delivery is the creation a FORUM
with the clients so that we can get them best solution from the
builders. Our priority is the clients’ interest. It is our commitment
levels and transparency of our deals that we have a 100% client
retention ratio and over 2000 satisfied customers in just a
period of over 2 yrs.
UNICON REAL ESTATE PVT.LTD is an underwriting
company that manages to lead all the sales charts for the products we
decide to promote. Investors today have two choices; either they go
through the grind manoeuvring through an unorganized market or
choose a Professionally Managed Group and deal with the other party
with a sense of security. We provide that security; this is our strength
and we welcome all to be a part of this revolution with us and help
regulate this industry.

MISSION OF THE COMPANY

"The mission of UNICON is to establish itself as the most successful real

estate brokerage firm nationwide. UNICON incorporates proven,
professional state of-the-art techniques specializing in the marketing, listing
and selling of new and resale luxury homes, residential communities,
condominiums, home sites, undeveloped land and commercial and
investment opportunities. UNICON maintains a full-time staff of well-trained
real estate professionals who continually strive to provide top quality service
for their individual clients and customers. UNICON is a creative, innovative
and people-oriented organization providing individual opportunity, personal

57
satisfaction and rewarding challenges to all members, investors, owners
related with the firm."

VISION OF THE COMPANY

"We are determined to be nationally respected real estate brokerage

organization that provides most comprehensive estate solution, leveraging
investment opportunities, rapidly growing market and technology. We will
continuously strive to always exceed our customer expectations through
active community involvement."

STRENGTH OF THE COMPANY

Whether you are looking to buy, sell or lease a home, office or retail
showroom, UNICON can assist you in every step of the way.

58
  Efficient and most proven, high technology and professional
management system.

 Largest database of property buyers and sellers.

 Absolute professional, transparent and law abiding system.

 Long term association with clients forged on openness, trust and

matchless professionalism.

 Capability to service the needs of our clients in most of parts of

India and the world.

Efficiency to professionally manage any requirement of the clients ranging

from apartments, houses, villas, land, commercial offices, commercial shops,
farm houses, malls, restaurants, industrial plots, information technology
parks, special economic zones etc.

We ensure to provide, within the allocated budget of the esteemed client,

the best possible property, at the best possible locations. We follow the most
transparent, professional and clean procedures to sell or to buy the property,
enabling such individuals to realize their cherished dreams of owning a
house of their own at the most competitive prices or to sell their property at
the best possible prevalent market rate

59
 OBJECTIVES

• To study the reasons for investing in real estate.

• To study the risk factor in real estate.

60
 RESEARCH METHODOLOGY

Research methodology

1. Research Design: - Descriptive

61
2. Sample size : - 200

.
3 . SAMPLE UNIT:- INVESTORS

4 . SAMPLE AREA:- NATIONAL CAPITAL REGION

(NCR)

5. Research Instrument:- Questionnaire

6. DATA COLLECTION:-

a) Primary Data:- Questionnaire.

b) Secondary Data:- Internet, Internal source of the Company.

62
 ANALYSIS AND INTERPRETATION

Analysis and Interpretation

The company, UNICON REAL ESTATE Pvt. Ltd. has presently 3 projects out of
which 2 have been already cleared and one is yet to be executed. The company

63
expect 10-20% returns/profit margins, although it varies from projects to
projects due to various reasons like time, cost of purchase, etc.

1). Do you have interest in investing in Real Estate?

a) Yes b) No

SNo. Response %
1. Yes 84%
2. No 16%
Total --------- 100%

64
 No. of Respondents

Not Interested16%

Interested
84%

Interpretation:

84% people are interested to invest their fund in realestate.

16% people are not interested to invest their fund in realestate.

2). Have you invested your funds in Real Estate?

a) Yes b) No

65
SNo. Response %
1. Yes 30%
2. No 70%
Total --------- 100%

ss
30%

Yes--30%

No-- 70%
70%

Interpretation-
30% of the people have invested in the real estate and they are well aware
of it, whereas, 70% of the people don’t have invested in the real estate.

3). which is the best option to invest your fund?

a) Real estate b) Commodity

c) Equity b) Any other

66
SNo. Investment options %
1. Real estate 40%
2. Commodity 15%
3. Equity 15%
4. Any other 30%
Total ------------ 100%

67
. INTERPRETATION:-
40% prospective investors like to invest in Real estate,
15% in commodities,
15% in equity,
30% in any other.

Interpretation:- Mostly investors focusing towards Real estate

4). what duration of time you are interested in investing in Real Estate?

a) Short term b) Long term

c) End use d) Recurring Earning

68
SNo. Duration %
1 Short term 50%
2 Long term 30%
3 End use 15%
4 Recurring 5%
Earning
Total ----------- 100%

69
 Durationof Time
5%

15%

50%
30%

INTERPRETATION: -
 50% investors are investing for short term.

 30% investors are investing for long term.

 15% investors are investing for end use.

 5% investors are investing for Recurring Earning

 Most of investors are investing for short term.

70
5)In which project you would like to invest your fund?

[ ] Office Spaces [ ] Shopping Malls

[ ] Plots [ ] Multiplexes

[ ] Group Housing

SNo. Project %
1. Office space 10%
2. Shopping malls 15%
3. Plots 50%
4. Multiplexes 5%
5. Group housing 20%
Total ------------------ 100%

71
 ,
60

50

40

30
,
20

10

0
office space shopping malls plots multiplexes group housing
INTERPRETATION:-
50% investors like to invest in plots.
10% investors like to invest in office space,
15% in shopping malls,
5% investors in multiplexes.
20% in group housing.

Most of investors would like to invest their money in plots.

72
6. Which Brand name comes to your mind first?

[] DLF
[] UNITECH
[] OMAXE
[] ANSALS
[] ELDECO
[] DREAMLAND
[] EROS
[] PARSVNATH

Interpretation
parsvnath brand striks first people mind, then DLF, then Unitech, then
Ansals, then Omaxe, then Dreamland, then Eldeco.Most of people aware of
Parsvnath brand name.

73
7) DO you think that there is a risk in realestate?

a) Yes b) No

SNo. Response %
1. Yes 20%
2. No 80%
Total --------- 100%

Yes
No

Interpretation:-
 20% investors think there is a risk in realestate.
 80% investors think that there is no risk in realestate.

Mostly investors think that there is no risk in realestate.

74
8). what are the risk factors involved in Real Estate?

a) Lack of reliable data b) Legal and regularity risk

c) Lack of professional advice d) Hard explore opportunities

SNo. Risk %
factors
1 Lack of 50%
reliable data

2 Legal and 25%

regularity
risk

3 Lack of 15%
professional
advice

4 Hard explore 10%

opportunities

Total ____ 100%

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 Riskfactors
10%

15%

50%

25%

INTERPRETATION: -
 50% investors having the risk of lack of reliable data.
 25% investors having the risk of Legal and regularity risk
 15% investors having the risk of Lack of professional advice
 10% investors having the risk of Hard explore opportunities
Most of investors having the risk of lack of reliable data.

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9) DO you think realestate company handover the property at
the specified date?

a) Yes b) No

SNo. Response %
1. Yes 70%
2. No 30%
Total --------- 100%

Yes
No

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Interpretation:-

 30% investors think that realestate company does

not handover the property at the specified date.
 70% investors think that the realestate company
will hand over the property at the specified date.

Mostly people think that realestete company will

handover the property at the specified date

10). Suggestions if any?

Interpretation: –

Investors required a clean & green environment, a home of their dreams which
they can buy in their budget, Security should be proper, Parks for children and
shopping centers, multiplexes for ladies. Well & managed Transportation facilities.

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 FINDINGS
 In the present era the people are aggressive to
invest their fund in real estate.

 Costumers perceive that their investment is safe

and risk is less.

 Most of people invest in real estate for the

business purpose, they resale the property
for earn surplus.

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 CONCLUSION

After studying the perception of prospective investors the 84% likes to invest their
money in REALESTATE in this era and there is minimum level of risk involved in
real estate. The emerging business of REALESTATE pulling investors towards it
to invest their money. During conducting the study I have found the Brand Name
PARSVNATH strikes investor’s mind and they are running to invest in the brand.
Some investors going to invest their wealth in Plots.

The study comes to the conclusion the business REALESTATE directly or

indirectly attracting the investor’s pocket to invest in REALESTATE.

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 LIMITATIONS OF THE STUDY

The project work is based on certain limitation

observed during course of study which are as follows.

 The information
collected from the customers is verbal.

 The Investor base of

NCR is consulted for collecting feedback.

 The information given

in the feedback is based on personal view point
of INVESTORS.

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 SUGGESTIONS

• Tremendous demand for residential property such as group housing,

residential plots, and townships rather than commercial property. The
company should focus on developing the residential property more rather
than commercial property.

• There should be an option for discount for customers from registered dealers
of the company.

• Customers should be approached and asked them to see sample flat without
forcing them to buy the flat.

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BIBLIOGRAPHY

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BIBLIOGRAPHY:

• http://www.uniconindia.in

• http://www.uniconproperty.com

• http://www.ssrn.com

• http://www.unitechgroup.com

• http://www.omaxe.com

• http://www.dlf.in

• http://www.parsvnath.com

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ANNEXURE

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 Questionnaire

What are the investors perceptions about investing in Real Estate?

Introduction

Thank you for taking the time to complete the survey. Your feedback is integral to our academic
research how investors think about investing in real estate.

Your answer will remain strictly confidential and will be used for research purpose only. The
survey should take about 5-7 minutes to complete. Thank you once again for your time.

NAME: AGE:

ADDRESS: OCCUPATION:

1. Do you have interest in investing your funds in Real Estate?

[ ] Yes [ ] No

2. you have invested your funds in Real Estate?

[ ] Yes [ ] No

3. Which is the best option to invest your fund?

[ ] Real Estate [ ] Commodities

[ ] Equity [ ] Any Other

4. What duration of time you are interested in investing in Real Estate?

[ ] Short Term Return [ ] Long Term Return

[ ] End Use [ ] Recurring Return

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5. In which project you would like to invest your funds?

[ ] Office Spaces [ ] Shopping Malls

[ ] Plots [ ] Multiplexes

[ ] Group Housing

6. Which Brand name comes to your mind first?

[ ] DLF

[ ] UNITECH

[ ] OMAXE

[ ] ANSALS

[ ] ELDECO

[ ] DREAMLAND

[ ] EROS

[ ] PARSVNATH

7) DO you think that there is a risk in real estate?

a) Yes b) No

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8. What are the risk factors in Real Estate?

a) Lack of reliable data b) Legal and regularity risk

c) Lack of professional advice d) Hard explore opportunities

9) DO you think realestate company handover the property at the specified date?

a) Yes b) No

10. Suggestions if any ?

_____________________________________________________________

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