TRAINING REPORT

ON

“Growth of Real Estate Sector with in 5years”

A case of Corporate Real Estate Solutions

Submitted to
MAHARSHI DAYANAD UNIVERSITY, ROHTAK
In partial fulfillment of the requirements
For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(INDUSTRY INTEGRATED)
(II SEMESTER)

Submitted by:
Name: Alok Kumar Upadhayay
Regn. No.
Roll.No.

DAV INSTITUTE OF MANAGEMENT

(ELC CODE: 080923013)
NH-3, NIT, FARIDABAD.
JULY 2011
 DECLARATION

I hereby declare that the Training Report conducted at

Corporate Real Estate Solutions,Delhi.

Under the guidance of

(Ms. Aakrity)

Submitted in Partial fulfillment of the requirements for the

Degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

is my original work and the same has not been submitted

for the award of any other Degree /diploma /fellowship

or other similar titles or prizes.

Place: <Student’s Signature>

Date: Alok Kumar Upadhayay
Regn.No:
Roll No.

2
 ACKNOWLEDGEMENT

First and foremost, I extend my deepest thanks to my mentor and guide Mr. Vishal Srivastava,
Director – Corporate Real Estate Solutions, for giving me this opportunity to work in such a
prestigious organization as well as for giving me a wonderful thesis. Without his constant guidance and
feedback, I would have never been able to complete the training, I did.

I am thankful to Ms. Aakrity, whose consistent support and cooperation showed the way towards the
successful completion of the thesis. Her views, advices and directions have been invaluable during the
course of this training.

I am thankful to them for their support and encouragement. My special thanks to Mr. Dinesh Sachdeva
for his valuable inputs.

The acknowledgement would really be incomplete if don’t thank those numerous colleagues of the
company whose priceless inputs and directions have paved the way for the successful completion of the
Training.

Alok Kumar Upadhayay

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 CONTENTS :
CHAPTER 1: INTRODUCTION

1.1 General Introduction about the sector.

1.2 Industry Profile.
a. Origin and development of the industry.
b. Growth and present status of the industry.
c. Future of the industry.

CHAPTER 2: PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization.

2.2 Growth and development of the Organization.
2.3 Present status of the Organization.
2.4 Functional Departments of the Organization.
2.5 Organization structure-and Organization chart.
2.6 Product and Service profile of the Organization / Competitors.
2.7 Market profile of the Organization.

CHAPTER 3: DISCUSSIONS ON TRAINING.

3.1 Student’s work profile (Roles and Responsibilities), tools and techniques used.
3.2 Key learnings

CHAPTER 4: STUDY OF SELECTED RESEARCH PROBLEM.

4.1 Statement of research problem.

4.2 Statement of research objectives.
4.3 Research design and methodology.

CHAPTER 5: ANALYSIS.

5.1 Analysis of data.

5.2 Summary of Findings.

CHAPTER 6: SUMMARY AND CONCLUSIONS.

6.1 Summary of Learning Experience

6.2 Conclusions and Recommendations.

APPENDICES
BIBLIOGRAPHY

4
 CHAPTER:1

INTRODUCTION

5
 1.1 General Introduction About The Sector

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.
Agents are often better informed than the clients who hire them and may exploit this informational
advantage. Real-estate agents, who know much more about the housing market than the typical
homeowner, are one example. Because real estate agents receive only a small share of the incremental
profit when a house sells for a higher value, there is an incentive for them to convince their clients to sell
their houses too cheaply and too quickly. We test these predictions by comparing home sales in which
real estate agents are hired by others to sell a home to instances in which a real estate agent sells his or
her own home. In the former case, the agent has distorted incentives; in the latter case, the agent wants
to pursue the first-best. Consistent with the theory, we find homes owned by real estate agents sell for
about 3.7 percent more than other houses and stay on the market about 9.5 days longer, even after
controlling for a wide range of housing characteristics. Situations in which the agent’s informational
advantage is larger lead to even greater distortions. Other possible explanations, such as a lower effort
on the part of agent when serving clients, lower discount rates on the part of agents, or unobserved
differences in housing quality, appear less likely to account for the observed differences.

1 An interesting question to which we turn in Section VI is why existing contractual

arrangements persist in light of this distortion.

I. Introduction
Because of specialization, individuals rely heavily on the advice of experts in
making decisions. For activities as varied as medical treatment, automobile repair, legal
matters, planning for retirement, or selling a home (to name just a few), there are experts
with particular skills, knowledge, and experience willing to provide their services.
 A defining characteristic of transactions involving the hiring of an expert is the
informational advantage enjoyed by the expert relative to the client seeking

6
 advice. As a result of this private information, expert agents may mislead their
clients by exaggerating the costs or difficulty of a solution, providing unneeded
services, or otherwise distorting the information to maximize the expert’s own
payoff. For example, a lawyer may argue that his services are necessary in
preparing a simple will, even though the lawyer would use the same off-the-shelf
software a client could buy. An auto mechanic may suggest overhauling the entire
engine when only a small part needs replacing. A travel agent may only mention
flights on airlines, which pay the highest commission rates to travel agents for
booking.

 In this paper, we focus on the relationship between a real estate agent and a home
seller. The real estate agent is likely better informed about the value of the house
and the state of the local housing market than is the seller. (More formally, this
information advantage might be thought of as the agent having a more accurate
signal of the distribution of likely offers on the house.) Typical residential real
estate contracts have the real estate agent receiving only a small fraction of the
purchase price of a home, but bearing much of the cost of selling the house (for
example, showing the home to prospective buyers, hosting open houses, and often
advertising and marketing expenditures). This induces a misalignment of
incentives between the seller and agent.1 The agent has strong incentives to sell a
house quickly, even at a substantially lower price, and thus may encourage clients
to accept sub-optimally low offers too quickly. A rate

 This older version is available at home.uchicago.edu/~syverson. Note that in the

formal model used in the earlier version, the agent cannot credibly convey any
information beyond a simple recommendation to either accept or reject the offer.
Any message that attempted to further signal the intensity of the agent’s
preferences is cheap talk. For any offer that is high enough that the agent would
like the seller to accept, the agent will have the incentive to falsely portray the
offer as being extremely high, even if it is just above the acceptability cutoff. As
consequence, the seller will ignore such information (Crawford and Sobel 1982).

7
 If we were to allow cash transfers from the agent to the seller, this would provide
the agent a way to convey more information about the attractiveness of the offer.
When a really good offer arrives, the agent could credibly signal this by offering
to make an additional payment to the seller if the offer is accepted.

 The extent of the distortion induced by misaligned agent incentives may be

considerable. Real estate agents typically bear a substantial fraction of the
marketing costs involved with a home sale: advertising, accompanying potential
buyers on visits to the home, conducting open .

 Another way of putting into perspective just how distorted are agents’ incentives
is to compare real estate to sharecropping, where some have argued that the
contractual form leads to important distortions (e.g. Shaban 1987). In the typical
sharecropping arrangement, output is split 50-50 between the land owner and the
sharecropper; in real estate, the seller’s agent receives a much smaller share of the
marginal profit Housesand negotiating offers. Typically, however, the agent
receives only a small percentage of each marginal dollar of the price for which the
house sells. (In the U.S., this is usually about 1.5 percent: a total commission of 6
percent of the sales price is split evenly between the buyer’s and seller’s agents,
both of whom then give half to their firms, leaving 1.5 percent for each agent.) If
the combined financial and opportunity cost to an agent of selling a house were
$200 per week, then an agent earning 1.5 percent on the margin would be
indifferent between selling the house today and waiting one more week and
receiving an offer $13,333 higher with certainty. The homeowner, on the other
hand, would much prefer to wait a week and take the higher offer. On a $300,000
house, the homeowner’s one-week return from waiting would be over four
percent.

 Real estate transactions provide an unusually attractive setting to test the impact
of information distortion by experts. Unlike many experts (e.g. surgeons), real
estate agents not only provide their services to clients, but also sell their own

8
 homes. When a real estate agent sells his own home, he is residual claimant on the
full surplus from the sale and thus has optimal incentives. By comparing sale
prices and time on the market for homes where the agent is hired by a client
versus when the agent sells his or her own home (and controlling for other
factors), we have a simple test of the distortions induced by the private
information on the part of agents.

 Using a data set of nearly 100,000 home sales, of which roughly 3,300 are agent-
owned, we find that, even after controlling for a wide array of house and
neighborhood characteristics, agent-owned homes sell for about 3.7 percent (or
roughly $7600 at the median sales price) more than comparable houses and stay
on the market an extra 9.5 days (about 10 percent) longer, even after controlling
for a wide array of house and neighborhood characteristics. Although a price
difference of $7,600 is large for the consumers, the real estate agent’s personal
share of that sum.

 While we are unaware of any empirical evidence documenting risk tolerance of

agents, the fact that real-estate agents have chosen a profession with a highly
variable income stream argues in favor of greater risk tolerance on the part of
agents. On the other hand, shocks to home values in a market not only affect .

 A final alternative model that could plausibly generate our empirical findings is
one where shirking by the agent leads offers to be drawn at a lower rate or from a
worse distribution than if the agent were selling the identical home for himself.
However, theoretical results from the job search literature suggest for many
common distributional forms, agent shirking that lowers offer arrival rates or
results in a poorer distribution of offers would increase the expected time until a
seller accepts an offer. This is inconsistent with the fact that we see non-agent-
owners selling sooner than agents.

9
  Germaise and Moskowitz (2004) analyze a different type of information
asymmetry in commercial real estate transactions. Our results also contribute to
growing literatures on time on the market (e.g. Genesove and Mayer 1997; Taylor
1999; Merlo and Ortalo-Magné 2004) and the impact of agency form on sales Our
paper builds on a small empirical literature in this area. Hubbard (1998, 2002)
analyzes data from the California vehicle inspection emission market and finds
that inspection suppliers tend to let vehicles pass inspections, even though they
would incur a short-run benefit from repairing those that fail—the reason being
that lenient inspections are rewarded with repeat business. Gruber and Owings
(1996) provide tantalizing evidence of how physicians may distort decisions to
further their own interests. Doctors in areas with declining birth rates are found to
be much more likely to perform caesarian sections than are doctors in growing
areas. Gruber and Owings interpret this result as possible evidence that excess
capacity leads doctors to induce demand for more expensive services from their
clients. The research most similar to ours is Rutherford, Springer, and Yavas
(2005), who, in independent work, find that agent-owners earn higher selling
prices on their homes, but see no time-on-market difference. Their focus is on the
effort exerted by the agent, rather than information distortion. Consequently, they
do not test, as we do here, if agent-owners do systematically better in market
subsets where one might expect they hold a greater information advantage.
The structure of the paper is as follows. Section II introduces the data used. Section III
presents the basic empirical analysis. Section IV discusses the competing theoretical
explanations and undertakes additional analysis of the data in an attempt between the
alternatives. Section V discusses the results and concludes

II. Data Used in the Analysis

 The data we use encompass nearly 100,000 home sales in suburban Cook County,
Illinois (the county contains the city of Chicago). The source of the data is the
Multiple Listing Service of Northern Illinois (MLSNI), the clearinghouse through
which realtors in the Chicago outcomes (e.g., Munneke and Yavas 2001; Hendel,

10
 Nevo, and Ortalo-Magné 2007; Bernheim and Meer 2008; and Levitt and
Syverson 2008).
 Further details about MLSNI can be found at www.mlsni.com. The archived data
we utilize in this paper are not publicly available, but can be obtained by any
licensed realtor who is part of MLSNI.

 For some entries such as listing prices and addresses, there are strong incentives
for the agent to enter the correct numbers, since this database is the primary
mechanism through which other agents learn what properties are currently for
sale.

 For instance, we observe over fifty different entries for the field asking the
presence or absence of ―air conditioning,‖ corresponding to different conventions
for abbreviating responses and different types of systems such as wall units,
central air, zoned central air, space-pacs, or a combination thereof.

Metropolitan areas notify other realtors (and, more recently, the public) of properties for
sale.7 these data have numerous strengths. First, they cover virtually every house put up
for sale in which a seller’s agent is hired, regardless of whether the house is eventually
sold. Most of the analysis presented below focuses on homes that actually sell, but we are
also able to explore whether or not listed homes sell as a check on possible selection
biases. Second, the data contain extremely detailed information about every house on the
market, including the address, a wide range of housing characteristics, the list price and
sale price of the home, a written description of the house’s attributes used by the real
estate agent in marketing the house, and the key dates regarding the home sale (e.g.,
when the house goes on the market, the date a contract is signed with a buyer, etc.).
Third, the data report whether the real estate agent has an ownership interest in the house,
which is critical to our identification strategy.

The MLSNI data do, however, have a number of important flaws and limitations. First,
the dataset does not provide any information about homes that are for-sale-by-owner
(FSBO). Second, the real estate agents themselves enter the information in the database.

11
There is no independent check on the accuracy of the description of the home’s
attributes.8 Also, there are few restrictions on what agents can type into a field in the data
base and no requirement that all fields be completed. As a consequence, there are
substantial amounts of missing data for some variables (e.g. approximate square footage),
some evidence of obvious errors, and a lack of uniformity in the way fields are coded.Our
primary sample is made up of single-family homes that were listed for sale in 34 Cook
County suburbs during the period 1992-2002. These suburbs are the 34 largest
municipalities in the county in which the majority of properties listed for sale are
detached single family homes (this excludes the city of Chicago, for which a notably
smaller share of real-estate transactions are detached single family homes) and in which
sales of newly constructed homes represent a small fraction of overall sales.

We impose a number of restrictions on the data. We use county tax identification

numbers to link listing and sales activity on a given property over time. Properties that
are missing tax identification numbers, or have errors in these numbers (for instance, two
properties listing the same tax ID number but located in different cities) are dropped from
the sample. The ability to link separate listing episodes for a given house is important
when we measure time-to-sale, because houses are sometimes strategically de-listed and
quickly re-listed in order to reset the ―days on market‖ field in the MLS listing. We
therefore compute time-to-sale by summing across all of a house’s listing periods that are
separated by fewer than 180 days. Additionally, we drop from the sample any home that
is sold twice within a three-year period. This is due to concerns that the house has been
purchased and rehabbed for resale. In the presence of imperfect measures of a house’s
quality, these repeat transactions may yield particularly misleading results, especially if
real estate agents are more likely to be rehabbers than other sellers. A rehabber can get
better access to properties and can collect commissions on property transactions by
becoming a real estate agent. Thus most rehabbers are likely to also have real estate
licenses. It is worth noting, however, that our empirical results are not sensitive to
excluding repeat sales.

The full set of summary statistics for all variables in the empirical specifications can be
found in Levitt and Syverson (2005).

12
The skewness of the house price distribution may exaggerate the size of a typical
difference. The mean difference in logged sales prices—the primary difference we focus
on below—suggests a 12-percent difference in sales prices.
bathrooms, no kitchen, etc. Finally, in order to estimate all models with a common
sample, about 450 listings are removed because of missing data for one or more of the
variables included in the hedonic model. This leaves us a final data set with roughly
98,000 home sales. About 3.4 percent of the observations in our data—3330 sales—
involve a real estate agent selling his or her own home.

III. Do theories that do not involve real-estate agent shirking or

information distortion explain the observed patterns in the data?

A number of different theories can, in principle, produce the basic pattern of results we
observe in the data. In this section, we attempt to distinguish between these competing
hypotheses. We begin with a discussion of how such results could be generated within
competitive markets without either informational frictions or agency problems. In Section
V we then turn to stories involving information distortion or shirking on the part of
agents.
There are three potential reasons why agent-owned homes might sell for more and
remain on the market longer than the homes of clients, even if agents provide the same
level of service and advice to clients as when they sell their own homes: unobserved
differences between the characteristics of agent-owned homes and those of their clients,
greater patience on the part of agents, and less risk aversion on the part of agents. We
consider these three explanations in turn.

a) Unobserved differences between agent-owned and client homes

Despite our best attempts to control for housing characteristics, it remains a possibility
that agents own homes that systematically differ from those of non-agents on dimensions
that we cannot observe. Our results are not easily reconciled with either a model in which
real-estate agent houses are more attractive on unobservable dimensions such as good
taste in choices of décor; if that were the case, one would expect agent homes to sell more
quickly than client homes, rather than less quickly. If, instead, agent-owned homes are

13
decorated in an expensive but idiosyncratic fashion, these houses may sell slowly because
they appeal to a small subset of buyers, but fetch a high price because within this set of
buyers the home is especially highly
On its website, the National Association of Realtors (2007) suggests preparing a home for
sale by ―…repainting dingy, soiled or strongly colored walls with a neutral shade of
paint, such as off-white or beige. The same neutral scheme can be applied to carpets and
linoleum.‖ In an interview in Realtor Magazine (Evans [2002]), a home stager—an
individual hired to prepare homes for showings—described the duties involved as, ―A
stager goes in and furnishes as neutrally as possible to appeal to the widest audience.‖
The large Canadian real estate company Royal Lepage (2007) offers the following tip to
homeowners preparing a home for sale: ―Don’t be too unique. Keep your décor simple
and modern with neutral wall colours. Unusual accessories and strong wall colours will
limit your pool of buyers.‖ Agent fixed effects will also deal with possible bias arising if
the set of agents who sell their own homes is not representative of agents as a whole

Valued. A wide array of anecdotal evidence, however, argues that real estate agents
advocate decorating choices that will give their homes the broadest appeal possible.18
Nonetheless, we attempt to quantify the potential importance of unobserved
heterogeneity in two ways, neither of which is definitive. First, following the
methodology of Murphy and Topel (1990), under the assumption that the unexplained
variation in our outcome variables is related to our agent-owned variable in the same way
as the variation that we can explain, we can estimate the true coefficients, even if some
bias due to unobservables remains in our specifications. Moving from column 2 to
column 4 of Table 2, the sale price coefficient falls from 4.2 percent to 3.7 percent as the
R-squared of the regression rises from .886 to .958. Extending that trend over the
remaining unexplained variation yields an estimate of 3.4 percent on the agent-owned
variable in the sale price regression. The time on the market results, because the R-
squared is lower, are slightly more sensitive, yielding an estimated true underlying
coefficient of 5.7 extra days on the market, compared to our estimate of 9.5 days.
A second approach to eliminating unobserved heterogeneity is the inclusion of agent
fixed effects in the specification. To the extent that the unobserved characteristics of an
agent’s own home are correlated with the unobserved characteristics of that agent’s

14
clients’ homes, this specification will reduce bias due to unobserved heterogeneity.19
With agent fixed effects included, the coefficient on the agent-owned variable in the sale
price regression is 2.9 percent
Because of computational limits, we are unable to estimate specifications that include
both agent fixed effects and block fixed effects. The results we report with agent fixed
effects therefore correspond to the specifications in column 3 of Table 3 rather than
column 4.

21 If (1 + r/365)9.5 = 1.037, then r = 1.399.

(standard error of 0.3 percent) and in the time on the market regression the coefficient is
6.5 days (standard error of 2.3 days).20
Based on these two approaches, it appears that unobserved heterogeneity may explain
some small portion of our findings, but cannot explain the overall patterns.
b) Lower discount rates on the part of agents
If real-estate agents have systematically lower discount rates when selling their own
homes than their clients, the agents will tend to receive a higher price for an otherwise
identical home, offset by a longer time to sale, just as we observe in the data. Real-estate
agents may be more patient than clients if, for instance, agents are less likely to be
making job-related moves that are time sensitive. Agents may also appear more patient if
they suffer less disutility from maintaining their home in the state required for home
showings.
The required differences in discount rates needed to explain our results are unrealistically
large, however. A 3.7 percent higher sale price in return for a waiting an additional 9.5
days is an expected annual return rate of 140 percent.21 While Genesove and Mayer
(1997) found evidence of unusually high implied discount rates on the part of home
sellers (20 percent annually), this is still just one-seventh of would be needed to explain
our findings as being driven solely by differences in discount rates.
c) Less risk aversion on the part of agents
If agents are less risk averse than their clients, they will place a lower value on an offer in
hand today relative to the uncertain prospect of a higher future offer. The fact that the
income stream accruing to a real estate agent is far more variable than that of the typical
American is consistent with greater risk tolerance on the part of agents. Arguing in the

15
opposite direction, however, is the fact that real estate agent wealth is more sensitive to
housing price shocks than is the level of X is inconsequential here because of the CRRA
assumption. The standard deviation of k was calibrated as the standard deviation of
logged house price residuals from our benchmark specification in Table 3, column 4. We
take this as a rough approximation of random dispersion in the offer distribution.
that of the typical client. While housing shocks affect the housing wealth of both agents
and clients, they have an additional impact on real-estate agents, since their earnings are
also affected. Negative housing shocks impact agent earnings through price effects, since
commissions are a relatively fixed proportion of the sale price (although free entry into
the profession dampens this effect; see Hsieh and Moretti [2003]), and perhaps even more
so through quantity effects due to the decline in the volume of sales.
To put further perspective on the degree of risk aversion necessary to explain the
agent-owner gap, consider the following back-of-the-envelope calculation. Suppose an
individual with constant relative risk aversion utility is able to obtain a payoff X with
certainty. This could be, for example, an offer-in-hand for a house. For this person to
prefer this payoff to one equal to kX, where k is normally distributed with mean 1.037 and
standard deviation 0.1145, he would have to have a coefficient of relative risk aversion
greater than 5.5.22 A risk aversion coefficient of 5.5 is at the top end of values typically
used in the literature; see the discussion in Kocherlakota (1996), for example. This
calculation, however, greatly overstates the risk associated with waiting because it
assumes the seller must accept the next offer, no matter how low. If we instead assume
sellers only need to accept offers lower than X with 50 percent probability (say because
some exogenous factor forces a sale), then a seller must have a coefficient of risk
aversion above 9.8 to prefer X with certainty.

V. Distinguishing between shirking and information distortion on the

part of agents
To the extent that the explanations discussed above do not appear sufficient to explain the
magnitude of our findings, there appears to be room for the role of agent distortions,
either via shirking on effort or exploiting an informational advantage.
There are a number of pieces of evidence that persuade us that informational asymmetries
are more likely to explain the results than shirking. From a theoretical perspective,

16
shirking is unlikely to lead clients to pull their houses off the market more quickly. Agent
shirking can affect offers in two ways: by reducing the rate at which offers arrive, or by
generating offers from a lower price distribution. Burdett and Ondrich (1985) show in a
labor market setting that if the offer distribution is logconcave (i.e., the log of the density
function is concave; many standard distributions exhibit this property, including for
example the uniform, normal, beta, exponential, and extreme value distributions), then
lower offer arrival rates, a lower mean of the offer distribution (holding variance
constant), or lower offer variance (holding the mean constant)—each possible
consequences of agent shirking—imply longer expected times until an offer is accepted.
These predictions contrast with our findings that non-agent owners sell sooner than do
agents.
Secondly, for shirking to be important it must either be difficult for clients to
observe their agent’s effort, or impossible to verify, so that contracts cannot be
conditioned on this information. Many of the tasks performed by an agent, however, are
readily observed by the homeowner (e.g. the placement of advertising, conducting open
houses and showings, generating a written description of the home’s attributes).
Third, there is some evidence that the gap between agent-owned homes and those
of their clients systematically vary with the agent’s informational advantage. We examine
this issue along three different dimensions, reporting the results in Table 4.
The first dimension we analyze is the degree of heterogeneity in the housing stock
on the city block where the home is located. In areas with nearly identical homes, sellers
can learn much about their own homes’ values simply by noting nearby sales prices.
When housing stock in an area is very heterogeneous, however, other sales prices convey
less information to sellers about their own homes’ values. We proxy heterogeneity by
constructing a Herfindahl index of home styles among houses sold on the block in our
sample period. (That is, we sum the squared ).We have also attempted to measure
heterogeneity of housing based upon the measured heterogeneity in the overall
observable characteristics of homes sold on the block. To obtain that block-level measure
of house heterogeneity, we first regress logged sales prices on a set of city-year dummies
and block effects. The residuals from this regression are that portion of home sales prices
not driven by temporal or spatial shares of each housing style on the block.) In order to be

17
included in the analysis, we require at least 3 homes to be sold on the block. Houses are
classified into 21 different styles (e.g., ranch, colonial, American four square, prairie,
contemporary) using the MLS listing descriptions. We then divide blocks into three
equally sized groups according to the Herfindahl measure. The estimates of the impact of
an agent-owned home are reported in the panel A of Table 4. We also report the implied
―excess return‖ of the realtor as above, where we adjust the agent-owner price gap for
differences in time on the market using an annual discount rate of 20 percent.
As can be seen in the table, the sales price difference between agent-owned homes
and other homes is indeed highest on blocks where the houses are most different. Here,
the price difference is 4.3 percent. The gap is smaller in the moderate-heterogeneity
blocks (3.9 percent), and smaller still on the low-heterogeneity blocks (2.3 percent—
roughly half that of the most dissimilar blocks), all in accordance with the notion that
neighborhoods with dissimilar houses present a larger information advantage for realtors.
We can reject at the five percent level that both the high- and medium-heterogeneity
subsample effects equal the low-heterogeneity effect, though we cannot statistically
distinguish between the former two. The time on the market differences reflect similar
contrasts. Agents on the more heterogeneous blocks clearly keep their houses on the
market for a longer period than non-agents, while there is no statistically significant time-
to-sale gap on those blocks with the most similar houses. (Statistical imprecision does
cloud these results somewhat, however. The point estimate for the moderate-
heterogeneity blocks is slightly higher than for the high-heterogeneity blocks, and we
cannot reject equality of the three estimated agent-owner effects across the subsamples.)
Finally, the sizes of agents’ implied excess returns in the three sub-samples are in
accordance with expectations: it is largest for the most dissimilar blocks but gets
progressively smaller as heterogeneity falls differences in average price levels. These
residuals therefore embody between-home differences in observable characteristics, such
as the number of rooms, the age of the home, and so on. We use the average squared
residual on each block as our measure of block heterogeneity. The results are similar to
those obtained using the Herfindahl index based on housing styles
The second dimension along which we expect to see systematic differences in agents’
information advantage relates to the introduction of the internet. In recent years

18
information about house sale prices have become readily available to the general public
on the Chicago Tribune website. In addition, sellers can now directly access a limited
version of the MLS. There are also web-based services that will predict the market value
of a home based on econometric models (e.g., Case and Shiller [1990]) and information
the seller enters into the program. Because of the improved information dissemination,
we expect that the information advantage of realtors has fallen over time. We report in
panel B of Table 4 the results from estimating our full hedonic specification on three sub-
samples of the data stratified by time period (1992-1995, 1996-1999, and 2000-2002).
As expected, the largest average sales price difference between agent-owned and non-
agent-owned homes—4.9 percent—is in the earliest period. This falls by about one-third,
to 3.2 percent, when the internet is starting to widely diffuse during 1996-1999. We can
reject equality of this estimate with that from earlier period at the five percent level. The
point estimate drops again slightly in the last period, though not significantly (however, it
is also significantly lower than the earliest period’s estimate). The time-on-market
differences echo these patterns. Agent-owners wait more than two weeks longer before
1996, just over a week longer in the middle period, and two-and-a-half days longer in
2000-2002. These estimates are less precise, however; while we can reject equality of the
time-on-market differences across the earliest and latest period at the 10 percent level, the
two other pairwise subsample comparisons are not significantly different. The implied
excess return for agent-owned homes, shown in the final column, is roughly 50 percent
higher in the first part of the sample than in the latter parts, although indistinguishable
between the middle and end periods. There are, of course, many other changes
As with many other urban areas in North America and Western Europe, the Chicago
metro area saw accelerated house price growth in the late 1990s after several sluggish
years (though the magnitudes were relatively modest compared to some other cities—
median prices in our sample never rose more than 11.6 percent per year). The timing of
this acceleration raises the possibility that our results in this particular test confound
information diffusion with changes in aggregate market conditions. While we cannot
explicitly rule this out, it does not line up quantitatively with the facts that the sales price,
time-on-market, and implied information gaps tightened most between the first and
second periods, while on the other hand aggregate market conditions changed much more

19
between the second and third periods than between the first two (e.g., the median sales
price grew 8.4 percent between the 1992-1995 and 1996-1999 periods but fully 35.3
percent between the second and third periods).
In the real estate market over time (e.g. price levels, availability of low down payment
loans, etc.) besides increasing information availability for consumers.24 Nonetheless, the
time-series pattern is at least consistent with our prediction regarding information.
The third dimension along which the informational advantage may vary is with respect to
the presence of a buyer’s agent. In most transactions, the sellers and buyers are
represented by different agents. In some transactions, only the seller has an agent, or the
same agent represents both the seller and the buyer. There are at least two channels
through which the absence of an independent agent representing the buyer could enhance
the information advantage of the seller’s realtor. First, the selling agent would
communicate directly with potential home buyers, providing an additional channel
through which to affect outcomes (perhaps without the seller’s complete knowledge). If a
buyer has a realtor, on the other hand, the two realtors talk to each other instead of the
opposing clients. Second, when buyers do not have agents, the selling realtor’s
commissions double since fees do not have to be split with a buyer’s agent. Therefore
sell-side agents have strong incentives to sell to buyers without agents; when realtors sell
their own homes, however, the incremental gain of 1.5 percent from making a sale with
no buyer’s agent is only a small portion of the total value of the house.
To test these hypotheses, we re-run our basic specification for the sales price of the home,
but add to the specification an indicator variable for the presence of a buyer’s agent (a
value of Time-on-the-market regressions will not provide meaningful information in this
context, since time on the market is a function of the entire history of the house’s listing
experience, and has little to do with

20
zero implies only the seller’s agent is involved in the transaction), as well as an interaction of
this indicator with the agent-owned dummy.25
The results, presented in the panel C of Table 4, fit nicely with the theoretical predictions.
The absence of a buyer’s agent has a negligible impact on sale price when a selling agent is
representing a client; the logged price effect (not reported in the table) is 0.0005 with a
standard error of 0.002. When the agent is selling his or her own home, on the other hand, the
absence of a buyer’s agent is associated with a statistically significant 1.9 percent increase in
the sale price, raising the agent-owned gap from 3.3 percent to 5.2 percent. One interpretation
of this result is that buyers without agents are less well informed and susceptible to paying
higher prices if the seller’s realtor wishes to extract the surplus. But, since the selling agent
earns twice as much by selling to a buyer without an agent, they do not attempt to extract the
surplus for their client at the risk of the deal failing to go through. When the agent sells his or
her own home, however, buyers without agents are exploited to the full extent possible since
the agent is the residual claimant.

VI. Conclusion
Experts hold valuable information. This information is helpful to those who hire them, but
can also be a source of welfare-reducing distortions. In this paper, we examine economic
interactions between experts and their clients in a particular industry, residential real estate.
The empirical estimates suggest the distortions are non-trivial: agents sell their own homes
for 3.7 percent (roughly $7,600) more than they sell their client’s homes, and leave their
houses on the market roughly 10 days (10 percent) longer. While this pattern of results is
directionally consistent with other explanations such as differences in discount rates or risk
aversion across agents and their clients, the magnitudes of the coefficients are not easily
reconciled with such explanations. Agent shirking on client homes also seems unlikely to be
driving our results, given
Interestingly, consignment used car lots exist in some locales. That is, the real estate model
has been applied toward used cars, instead of the other way around. These lots usually
specialize in low-value automobiles that would otherwise be ignored by traditional used car
sellers. It would be interesting to examine why such selling models sometimes arise .

21
 1.2 INDUSTRY PROFILE

a) ORIGIN & DEVELOPMENT OF THE INDUSTRY

Over the past decade, India has emerged as a leader in the global economy. It is a magnet for
foreign direct investment (FDI), and has displaced Mexico as the third most preferred
country for foreign investment. FDI in India is expected to increase to US$15 billion this
year, triple the 2004 figure. Many foreign companies are starting or expanding operations in
India. One-fifth of all Fortune 500 companies including Eli Lilly, General Electric, and
Hewlett Packard have set up research and development facilities in India. The surge in
foreign investment, more joint ventures between Indian and foreign companies, and the
growth of India’s domestic industries have created more employment opportunities for
India’s young, highly educated, professional workforce and fueled the growth of the
country’s middle class.
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.
Apart from the huge demand, India also scores on the construction front. A Mckinsey report
reveals that the average profit from construction in India is 18%, which is double the
profitability for a construction project undertaken in the US. The importance of the Real
Estate sector, as an engine of the nation’s growth, can be gauged from the fact that it is the
second largest employer next only to agriculture and its size is close to US $ 12 billion and
grows at about 30% per annum. Five per cent of the country’s GDP is contributed by the
housing sector. In the next three or four or five years this contribution to the GDP is expected
to rise to 6%.
The Real Estate industry has significant linkages with several other sectors of the economy
and over 250 associated industries. One Rupee invested in this sector results in 78 paise
being added to the GDP of the State. A unit increase in expenditure in this sector has a
multiplier effect and the capacity to generate income as high as five times. If the economy

22
grows at the rate of 10% the housing sector has the capacity to grow at 14% and generate 3.2
million new jobs over a decade. The relaxed FDI rules implemented by India last year has
invited more foreign investors and real estate sector in India is seemingly the most lucrative
ground at present. Private equity players are considering big investments, banks are giving
loans to builders, and financial institutions are floating real estate funds. Indian property
market is immensely promising and most sought after for a wide variety of reasons

India has experienced near-double-digit growth in the last several years and stories of the
Indian economic juggernaut fill newspapers and bookstores. The commercial real estate
market is no exception. The IT boom has created a huge demand for quality office space that
was nonexistent a few short years ago. Several prominent Indian developers have emerged,
and more and more international investors and developers are plunging into the country.
As with any local or regional market, there are many idiosyncrasies that color the business
environment, and India is no exception. Below is an introduction into the current conditions
within the Indian real estate market and what the future may hold as India quickly becomes a
global superpower.

GROWTH & PRESENT STATUS OF THE INDUSTRY

Despite early signs of the market reaching a peak, most of India’s cities continue to be
overwhelmingly a landlord’s market. All cities are still seeing multiple leases and active
requirements from 100,000 to over 1 million square feet, and tenants are sometimes forced to
wait months for the completion of core shell construction to start the hiring process for their
new operations. Tenants are faced with the resulting conditions: no tenant improvement
allowance, free rent periods that are only given during fit-out construction, and maintenance
charges up to twenty percent above cost.

Things to take care of:

A relatively young democracy – celebrating its 60th year of independence this year – India is
still maturing economically and politically, and a thorough due diligence is required when
considering India from an occupier or investor perspective. Local developers are still
responsible for the majority of new supply in most markets and their reliability on timelines
and construction quality varies. State governments play a key role in the viability of any

23
particular market and a shift in power can cause major changes in the growth patterns of a
city. Furthermore, the economic vehicles created for IT companies are a source of much
debate. STPI, or Technology Parks of India, is a longstanding government agency, which
provides tax benefits until 2009, and the extension of these benefits is unclear. The result of
this is that the majority of new requirements are looking at Special Economic Zones, or
SEZs, which allow for up to 15 years of tax holidays for both occupiers and developers.
However, frequent changes in SEZ policy require companies to create a customized strategic
plan with their tax consultant before commitment and occupancy. Likewise, there is no
clearly defined exit strategy for SEZs and developers are currently required to adopt a long-
term hold strategy on these assets.

b) FUTURE OF THE INDUSTRY

Despite volatility in the US and elsewhere due to sub prime lending, Indian equity markets
have remained strong, and this means companies from the subcontinent are quickly reaching
market capitalizations and credit levels that allow for major acquisitions abroad. According
to Grant Thornton, in the first eight months of 2007, there have been 164 acquisitions by
Indian companies worth nearly $31 billion, compared to 73 in-bound deals worth $15 billion.
Global brands such as Tetley Tea are already Indian-owned and Tata Steel made headlines
early this year with its $12 billion acquisition of Corus Steel to become one of the world’s
largest steelmakers. Indian realty major DLF made its Initial Public Offering in June and
reached a market capitalization of over $20 billion, rivaling the sale price of Equity Office to
Blackstone last year. Interest in institutional assets abroad is only inevitable and don’t be
surprised to see Indian real estate majors such as DLF and Unitech or conglomerates such as
Reliance and Tatas owning premium real estate assets in major US markets in the coming
years.
Indian Economy
India is one of the world's most attractive emerging markets, with the fifth largest economy
in the world. It has a democratic political system. The judiciary is independent of politics and
it has a free and vibrant press.

24
India is fortunate to have abundant natural resources. India also has the rich and abundant
talent in every field of work - managerial, technical and scientific. It also has a broad base of
industrial manufacturing. India is the second largest manufacturer and exporter of software in
the world.

A growing capital market along with well-developed financial institutions is adding muscle
to India's strengthening economy.

What City am I looking at?

India is a large country with an even larger population, and multi-national companies are
taking a strategic approach to capitalize on this growing market and rich pool of talent. In
terms of establishing office locations, most companies consider three types of cities:

Tier I cities are the hubs of business. The financial capital of Mumbai, the political capital of
Delhi, and the technology capital of Bangalore are the first destination for most corporations
and real estate demand and rental pricing reflect this. Consider this: office space in a prime
location such as Nariman Point in Mumbai costs upwards of 350 Rupees per square foot per
month (or approximately $105 per square foot per year), making it one of the most expensive
real estate markets in the world. While bursting demand and constrictions on new supply
have propelled rental rates, these cities face significant infrastructure issues, particularly road
congestion, and the capital markets environment is somewhat stymied due to the prominence
of strata title and opaque ownership history, specifically on older, more established assets in
downtown locations. Tier II cities such as Chennai, Hyderabad and Pune are the burgeoning
centers of IT commerce. With large populations, developing infrastructure, airport
connectivity and top-notch educational institutions, many companies look to establish large
operational hubs here. While demand for space in these cities remains strong, stronger
interest by developers has caused inflated land prices and many markets are predicting an
oversupply of new office supply in the next ten to eighteen months. As a result, rental rates
are leveling in many cities after several years of growth. Too many to list, Tier III cities are
those that have yet to see the formation of a formal real estate market, but to varying degrees
have the right ingredients to attract multi-national tenants. Corporate occupiers are
increasingly looking to gain first-movers advantage into cities such as Kolkata, Chandigarh,
Kochi, Coimbatore and Vishakapatnam due to the potential of untapped labor markets and
heavily discounted real estate costs that accompany less established locations. In light of
rising costs, particularly in real estate and human capital, and a weaker dollar, these cities in
coming years are sure to provide plenty of competition to Tier II cities.

25
What to Expect:
Despite early signs of the market reaching a peak, most of India’s cities continue to be
overwhelmingly a landlord’s market. All cities are still seeing multiple leases and active
requirements from 100,000 to over 1 million square feet, and tenants are sometimes forced to
wait months for the completion of core shell construction to start the hiring process for their
new operations. Tenants are faced with the resulting conditions: no tenant improvement
allowance, free rent periods that are only given during fit-out construction, and maintenance
charges up to twenty percent above cost.

Things to Look Out For :

A relatively young democracy – celebrating its 60th year of independence this year – India is
still maturing economically and politically, and a thorough due diligence is required when
considering India from an occupier or investor perspective. Local developers are still
responsible for the majority of new supply in most markets and their reliability on timelines
and construction quality varies. State governments play a key role in the viability of any
particular market and a shift in power can cause major changes in the growth patterns of a
city. Furthermore, the economic vehicles created for IT companies are a source of much
debate. STPI, or Technology Parks of India, is a longstanding government agency, which
provides tax benefits until 2009, and the extension of these benefits is unclear. The result of
this is that the majority of new requirements are looking at Special Economic Zones, or
SEZs, which allow for up to 15 years of tax holidays for both occupiers and developers.
However, frequent changes in SEZ policy require companies to create a customized strategic
plan with their tax consultant before commitment and occupancy. Likewise, there is no
clearly defined exit strategy for SEZs and developers are currently required to adopt a long-
term hold strategy on these assets.

The Future:
Despite volatility in the US and elsewhere due to sub prime lending, Indian equity markets
have remained strong, and this means companies from the subcontinent are quickly reaching
market capitalizations and credit levels that allow for major acquisitions abroad. According
to Grant Thornton, in the first eight months of 2007, there have been 164 acquisitions by
Indian companies worth nearly $31 billion, compared to 73 in-bound deals worth $15 billion.
Global brands such as Tetley Tea are already Indian-owned and Tata Steel made headlines
early this year with its $12 billion acquisition of Corus Steel to become one of the world’s
largest steelmakers. Indian realty major DLF made its Initial Public Offering in June and
reached a market capitalization of over $20 billion, rivaling the sale price of Equity Office to
Blackstone last year. Interest in institutional assets abroad is only inevitable and don’t be
surprised to see Indian real estate majors such as DLF and Unitech or conglomerates such as
Reliance and Tatas owning premium real estate assets in major US markets in the coming
years.

26
Indian Economy

India is one of the world's most attractive emerging markets, with the fifth largest economy
in the world. It has a democratic political system. The judiciary is independent of politics and
it has a free and vibrant press.

India is fortunate to have abundant natural resources. India also has the rich and abundant
talent in every field of work - managerial, technical and scientific. It also has a broad base of
industrial manufacturing. India is the second largest manufacturer and exporter of software in
the world.

A growing capital market along with well-developed financial institutions is adding muscle
to India's strengthening economy.

About Indian MNC's

Indian enterprises are entering into joint ventures and setting up subsidiaries.
The investments approved by Reserve Bank of India are well diversified, both in terms of
lines of activities of the overseas companies as well as their destination countries.
These joint ventures are spread across the globe in over 75 countries including Canada,
Ireland, US, UK, Netherlands, Egypt, Thailand, Hong Kong, China, South Africa, Malaysia,
Mauritius, Nigeria, etc. A number of approvals too have been given for setting up wholly
owned subsidiaries (WOS) in fields such as software.
Companies from India are globalising both in the field of manufacturing & non-
manufacturing. Areas in which Indian entrepreneurs have set up companies abroad and have
acquired a degree of capability to compete in the international market are light engineering,
textiles, chemicals and pharmaceuticals, food products, leather & rubber products, iron &
steel, commercial vehicles, glass & glass products, etc. The non-manufacturing; sector
includes hotels & restaurants, trading & marketing, consultancy, engineering & construction,
etc.

27
 CHAPTER :2

PROFILE OF THE
ORGANIZATION

28
 2.1 ORIGIN OF THE ORGANIZATION
Corporate Real Estate Solutions – A professionally managed company providing
consultancy services in real estate to cater the growing needs of individuals as well as large
corporate houses.
The company was established in 1999 and commenced its commercial operations right from
the beginning with small properties. With the growing needs, the company expanded its
business and started dealing in residential as well as commercial sector with innovative
marketing policies. Presently the company is an authorized channel partner of all the leading
real estate developers in India.
The company holds its administrative office in Dwarka, New Delhi. The company has a huge
database of commercial, residential properties with a pan India presence.
We at Corporate Real Estate, endeavor to exceed the expectations, to give delight and
comprehensive service & satisfaction to the client. We pride our self on understanding the
clients requirements in minute details and provide him high quality advice and consultation
services which meet the various constraints of time, budget, & quality for all his property
requirements, especially in Delhi NCR, PUNJAB & HARYANA region. We assist clients
in every stage of the estate process, representing them in the buying, selling, financing,
leasing, managing and valuing of assets, and providing strategic planning and research,
portfolio analysis, site selection and space location, among many other advisory services.
We with our long association with the various builders have the ability to negotiate and get
you a property at discounted rates to suit your budget.
Client satisfaction being our target: we have valued our principles over the time- and thus
taken pride in being a contemporary name in the industry. Composed by a co-existing insight
from the clients and our masterminds, our team has delivered at times of dire necessities for
people of different strata. Homes, Offices, Commercial facilities, Hotels & Resorts, Shopping
Malls, IT Parks- each and every undertaken task has depicted our dedication and sincerity
towards our innovative business module, bold commitments and utmost sincerity. We
understand that Real Estate does not just signify a property or a capital investment; for some
it is the initiation of a process of realizing the dreams.
We, at corporate real estate firmly believe in our client's ethics, principles, and values and
thus have cherished immense trust from them.
Vision
To become one of the most progressive Real Estate Company, offering professional services
of the highest integrity

Mission
CRES is established to provide the highest quality Real Estate Services to its market area. It
is our pledge to provide expertise, innovation through technology, and dedication to our
clients while maintaining the highest quality standards and ethics

29
Commitment
CRES is committed to the satisfaction of our clients, and to the profession of Real Estate
itself.

OUR EXPERTISE
With our long experience and extensive industry knowledge, we have gained expertise in
each and every domain of real estate sector. We specialize in developing projects for
residential, commercial, IT, Entertainment, Hospitality, Retail and SEZ’s as per the interests
and special requirements of our clients. We specialize in delivering best results as a result of
the synergy of the synergy of our resources such as experience, knowledge, labor, finance,
plant and equipment.

At CRES, we believe that humanity is indivisible. In this age of liberalization, one has to
think globally and act locally. We are committed to help the process of building a healthy
and sane human society. We aim to achieve excellence in all our offerings and areas of its
activity and to to scale the heights of perfection. Our etho comprised of four salient features:
• Professional management
• Qualified task force
• Plants & machinery
• Sound financial base

WHY US?

CRES was formed with sole purpose of providing 'Professional and Honest' services to its
valued customers. We believe 'service is our business' and keeping this in mind we have set
high standards for the same. We have always served our clients with sincere endeavor to
provide 'One stop property shop', which can cater to all their real estate requirements. At the
same time we also realize that several factors go into providing real estate solutions that
protect our customer's investment, most importantly clear title, Quality of Product & Cost-
effectiveness. Our extensive database ensures a wide spectrum of choice in properties for our
clients.

We are very different from other reality companies. We are a corporate, and we have a
proper and transparent process controlling and monitoring every little work we do. All your
property related services, documentation, registry, deed writing and other official & legal
processes are handled in the most professional manner.

30
2.2 GROWTH & DEVELOPMENT OF THE ORGANIZATION

CRES, based in Dwarka, New Delhi, provides its services in all major parts of the country.
The company was established in response to the growing need for quality housing and
commercial space in the metropolitan cities of country. Ever since its inception, CRES has
grown as highly reliable real estate company of the country, serving the needs of a wide and
discerning clientele.
CRES has emerged as a large Real Estate Developer in India. We are also one of the large
and renowned Real Estate Developers in Delhi. We also provide expert and specialized
services like property consultation and management services, Land Identification, Realty
Surveys, facilitating conceptualization to completion of any kind of real estate projects. We
also handle rental property management services and specialize in leasing to Corporate,
Expatriate and Retail brands. Besides this we do sale, purchase and renting for our
customers. We provide end-to-end commercial and residential real estate services to our
clients. Our company places great emphasis on maintaining long term and transparent
relationships with our clients.
We understand the Indian and Global Real Estate market and we can foresee the market
trends. We have opened the doors of international real estate for our customers in India and
vice versa. Overseas Indians are allowed to make investments in Indian property without any
limit on the quantity or the number of investments. We understand global cross-cultural
business issues and also offer international networking opportunities. For Surya it's a long
way to go. What we have done in other industry we want to achieve same position in real
estate line.

Why you should come to CRES?

 We understand the value of your time and money.
 We provide the Best Personalized Real Estates Services in India.
 Our friendly, committed staff is always ready to help you.
 Our consulting offices are located both in Delhi and the hubs of Northern India.
 We locate perfect property, through our experience, knowledge and expertise, to
meet your specific requirements.
 We do not compromise on quality of services rendered irrespective of the size and
value of the deal.
 We provide our services at a very reasonable charge.
 We believe in long, trustworthy and transparent business relationships.
 We assure you that you will have a one to one meeting with the Buyer/Seller before
entering into any deal to evaluate individual credentials. Evaluation of credentials of
an individual is undertaken at our level.
 Our documentation services saves valuable time and ensure hassle-free dealing for
our clients.

31
Cater to Personal Needs:
 Selling as a completed project
 Renting with lease for limited period
 Leasing to MNC’s for longer period.

Trouble Free Dealing in India:

 Checking of Property Papers
 Legal Consultancy
 Funding in Indian Currency
 Getting Completion once the Construction is over
We are a company that gives you personal attention. Services like Purchase of Land /
Construction / Architecture / Landscaping / Renting / Selling are undertaken under a single
roof. The best part is that you don’t have to take the hassle of dealing with any of the
authorities while you’re with us.

32
 2.3 PRESENT STATUS OF THE ORGANIZATION
CRES, based in Dwarka, New Delhi, provides its services in all major parts of the country.
The company was established in response to the growing need for quality housing and
commercial space in the metropolitan cities of country. Ever since its inception, CRES has
grown as highly reliable real estate company of the country, serving the needs of a wide and
discerning clientele.
CRES has emerged as a large Real Estate Developer in India. We are also one of the large
and renowned Real Estate Developers in Delhi. We also provide expert and specialized
services like property consultation and management services, Land Identification, Realty
Surveys, facilitating conceptualization to completion of any kind of real estate projects. We
also handle rental property management services and specialize in leasing to Corporate,
Expatriate and Retail brands. Besides this we do sale, purchase and renting for our
customers. We provide end-to-end commercial and residential real estate services to our
clients. Our company places great emphasis on maintaining long term and transparent
relationships with our clients.
We understand the Indian and Global Real Estate market and we can foresee the market
trends. We have opened the doors of international real estate for our customers in India and
vice versa. Overseas Indians are allowed to make investments in Indian property without any
limit on the quantity or the number of investments. We understand global cross-cultural
business issues and also offer international networking opportunities. For Surya it's a long
way to go. What we have done in other industry we want to achieve same position in real
estate line.

33
 2.4 ORGANIZATIONAL STRUCTURE
CRES has emerged as a large Real Estate Developer in India. We are also one of the large
and renowned Real Estate Developers in Delhi. We also provide expert and specialized
services like property consultation and management services, Land Identification, Realty
Surveys, facilitating conceptualization to completion of any kind of real estate projects. We
also handle rental property management services and specialize in leasing to Corporate,
Expatriate and Retail brands. Besides this we do sale, purchase and renting for our
customers. We provide end-to-end commercial and residential real estate services to our
clients. Our company places great emphasis on maintaining long term and transparent
relationships with our clients.

We understand the Indian and Global Real Estate market and we can foresee the market
trends. We have opened the doors of international real estate for our customers in India and
vice versa. Overseas Indians are allowed to make investments in Indian property without any
limit on the quantity or the number of investments. We understand global cross-cultural
business issues and also offer international networking opportunities.

Vision
To become one of the most progressive Real Estate Company, offering professional services
of the highest integrity

Mission
CRES is established to provide the highest quality Real Estate Services to its market area. It
is our pledge to provide expertise, innovation through technology, and dedication to our
clients while maintaining the highest quality standards and ethics.
Commitment
CRES is committed to the satisfaction of our clients, and to the profession of Real Estate
itself.
OUR EXPERTISE
With our long experience and extensive industry knowledge, we have gained expertise in
each and every domain of real estate sector. We specialize in developing projects for
residential, commercial, IT, Entertainment, Hospitality, Retail and SEZ’s as per the interests
and special requirements of our clients. We specialize in delivering best results as a result of

34
the synergy of the synergy of our resources such as experience, knowledge, labor, finance,
plant and equipment.
At CRES, we believe that humanity is indivisible. In this age of liberalization, one has to
think globally and act locally. We are committed to help the process of building a healthy
and sane human society. We aim to achieve excellence in all our offerings and areas of its
activity and to to scale the heights of perfection. Our etho comprised of four salient features:
• Professional management
• Qualified task force
• Plants & machinery
• Sound financial base

WHY US?
CRES was formed with sole purpose of providing 'Professional and Honest' services to its
valued customers. We believe 'service is our business' and keeping this in mind we have set
high standards for the same. We have always served our clients with sincere endeavor to
provide 'One stop property shop', which can cater to all their real estate requirements. At the
same time we also realize that several factors go into providing real estate solutions that
protect our customer's investment, most importantly clear title, Quality of Product & Cost-
effectiveness. Our extensive database ensures a wide spectrum of choice in properties for our
clients.

We are very different from other reality companies. We are a corporate, and we have a
proper and transparent process controlling and monitoring every little work we do. All your
property related services, documentation, registry, deed writing and other official & legal
processes are handled in the most professional manner.
Why you should come to CRES?
 We understand the value of your time and money.
 We provide the Best Personalized Real Estates Services in India.
 Our friendly, committed staff is always ready to help you.
 Our consulting offices are located both in Delhi and the hubs of Northern India.
 We locate perfect property, through our experience, knowledge and expertise, to
meet your specific requirements.

35
  We do not compromise on quality of services rendered irrespective of the size and
value of the deal.
 We provide our services at a very reasonable charge.
 We believe in long, trustworthy and transparent business relationships.
 We assure you that you will have a one to one meeting with the Buyer/Seller before
entering into any deal to evaluate individual credentials. Evaluation of credentials of
an individual is undertaken at our level.
 Our documentation services saves valuable time and ensure hassle-free dealing for
our clients.
Cater to Personal Needs:
 Selling as a completed project
 Renting with lease for limited period
 Leasing to MNC’s for longer period
Trouble Free Dealing in India:
 Checking of Property Papers
 Legal Consultancy
 Funding in Indian Currency
 Getting Completion once the Construction is over
We are a company that gives you personal attention. Services like Purchase of Land /
Construction / Architecture / Landscaping / Renting / Selling are undertaken under a single
roof. The best part is that you don’t have to take the hassle of dealing with any of the
authorities while you’re with us.
BUSINESS PARTNERS
We take pride in our tie-ups and strategic partnerships with leading agencies and
organizations in the Indian real estate sector, which enable us in offering world-class real
estate projects and services to our customers. We provide end-to-end real estate solutions,
advice and consultancy services to fulfill the specific requirements of our clients.

36
PURCHASE
What should a buyer keep in mind while purchasing a residential flat?
Some of the factors to consider while purchasing a flat are:
 Locality, meaning to transport, schools, hospitals, market, business district,
entertainment centers, hotels, restaurants, pollution levels, Car parking space
 Quality of construction
 Reputation of the builder or seller
 Sufficient water and electric supply, other utilities
In what manner the purchase consideration for the immovable property should be paid under
the general permission?
The purchase consideration should be met either out of inward remittances in foreign
exchange through normal banking channels or out of funds from any non resident accounts
maintained with banks in India.
Is there any restriction on the number of residential properties that may be purchased by an
NRI?
There are no restrictions on the number of residential properties.
What are the guidelines for acquisition of agricultural land / plantation property / farmhouse
by NRIs and foreign citizens of Indian origin?

SALE & REPATRIATION

Can sale proceeds of such property if and when sold be remitted out of India?
In India by a NRI or PIO, the authorized dealer may allow repatriation of the sale proceeds
outside India, provided all the following conditions are satisfied: -
• The immovable property was acquired by the seller in accordance with the provisions
of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the
provisions of the Regulations framed under the Foreign Exchange Management Act, 1999.
• In the case of residential property, the repatriation of sale proceeds is restricted to not
more than two such properties, if the property was purchased from funds held in NRE
Account.

37
RENT & REPATRIATION
LOAN RELATED
Does RBI have any guidelines for loans to NRI's/PIO's?
Yes. There are guidelines issued by the Reserve Bank of India for grant of Housing Loans to
NRIs. The guidelines are:
 The loan amount shall not exceed 85% of the cost of the dwelling unit.
 Own contribution, which is the cost of dwelling unit financed less the loan amount,
can be met from direct remittances from abroad only through normal banking
channels.
 Repayment of the loan, comprising of the principal and interest including all the
charges are to be remitted from abroad only through normal banking channels.
Can a authorized dealer grant loans to NRIs for acquisition of a flat/house for residential
purposes?
Authorized dealers have been granted permission to grant loans to NRI's for acquisition of
house / flat for self-occupation on their return to India subject to certain conditions.
What are the documents I have to submit along with the application?
The following documents are normally to be submitted along with the application:
 Photocopy of the labor contract and English translation duly countersigned by your
employer.
 Latest salary certificate (in English) specifying the following:
 Date of joining
 Passport Number
 Designation
 Perquisites and salary
 Photocopy of labor card/identity card.
 Photocopy of valid resident visa stamped on the passport.
 Photocopy of monthly statement of local bank account for the last 4 months.

38
 2.6 a) PRODUCTS OF THE INDUSTRY

1. Residential apartments.
2. Commercial Projects.

2.6 b) SERVICE PROFILE OF THE ORGANIZATION

 We give expert and specialized services like property consultation and management
services, Land Identification, Realty Surveys, facilitating conceptualization to
completion of any kind of real estate projects. We also handle rental property
management services and specialize in leasing to Corporate, Expatriate and Retail
brands. Besides this we do sale, purchase and renting for our customers in India and
Abroad. We provide end-to-end commercial and residential real estate services to our
clients. Our company places great emphasis on maintaining long term and transparent
relationships with our clients.

 We specialize in developing projects for residential, commercial, IT, Entertainment,

Hospitality, Retail and SEZ’s as per the interests and special requirements of our
clients. We have expertise in delivering best results as a result of the synergy of the
synergy of our resources. We have pioneered in the art of creating space for you and
your family to grow in style and luxury.

 Services like Purchase of Land, Construction, Architecture, Landscaping, Renting

and Selling are undertaken under a single roof. The best part is that you don’t have to
take the hassle of dealing with any of the authorities while you’re with us.

39
 2.6 c) COMPETITORS OF THE ORGANIZATION

GURGAON REAL ESTATE

GURGAON has now emerged as a planned, integrated, modern Industrial City, well connect
to Delhi through a network of roads, national highways and the ultra - modern DND flyover,
offering inter - road linkages to all parts of the country. Spread over 20,316 hectares, with
many sectors fully developed, GURGAON offers a pollution free high standard of living and
highly supportive industrial environment with its unique infrastructure providing numerous,
matchless facilities. Today, it stands as an enviable monument of the concept of integrated
township in the world, with residential complexes in the serene and peaceful environment
with greenery all around.
To make residents feel home in Gurgaon, nearly 40 % of the total land is now earmarked for
residential use, providing adequate accommodation at affordable rates complemented by
public amenities and other essential services. Another big reason that people choose to live
here is its proximity to Delhi with Connaught Place just 14 km away; and road, rail and air
linkages within reach.
All of these are supported by facilities that contribute to comfortable living in a pollution-free
environment -including convenient shopping centres in every sector, ample medical facilities,
recreation areas like the Gurgaon Golf Course, Gurgaon Stadium, Malls, cinemas,
amusement arcades and other opportunities for diversion and relaxation.
Our expertised and experienced Real Estate Agents in Gurgaon, help you with all your
residential and commercial real estate needs, whether you’re hoping to buy a new home,
townhouse, luxury home, office space or any other type of real estate property in Gurgaon
and Greater Gurgaon.

WHY INVEST IN GURGAON

Gurgaon, the largest industrial town of Asia, has under gone a paradigm shift in last few
years. Close Proximity to Delhi and enhanced connectivity with the rest of India through a
strong logistic network. Gurgaon is a well-planned township, which has more than 5000
industrial units and over 5,00,000 population.

40
M.G. Road
M.G. Road of Gurgaon is a prime example of an operational commercial complex, giving
Gurgaon and adjoining areas a taste of convenience, recreation and commerce. The sector
houses spacious plush office facilities, a five star hotel and a five-screened multiplex in a
giant mall.
M G Road market offers an integrated shopping experience in numerous centrally air-
conditioned departmental stores (Ebony, Sab Mall, Shoprix Mall etc.) and eating joints /
restaurants from all well known players of the hospitality service industry (SuperStars, The
Great Kabab Factory, Sagar, McDonald, Pizza Hut etc).

NRI Real Estate Trends

A lucrative investment prospect for Non Resident Indians (NRIs), Gurgaon ensure the
prospective investors to love them to have taken the decision to invest in Gurgaon properties.
Value of properties in Gurgaon is increasing with each passing day. Needless to say, NRIs
today are one of the most potential and affluent class in the global economic scenario. For
that reason, the city throws several options for NRIs to invest across all types of real estate
depending on the bite size, risk factors, and ease levels.
First is the Commercial property in Gurgaon, which mainly boasts of office spaces that can
easily be acquired by way of lease or for license for a particular span. Here, the commercial
property is known to yield you high returns, which are difficult to found. Retail sector in
Gurgaon is another option, which can be looked upon as a decent investment prospect as
swanky malls have largely replaced local retail shops and shopping complexes in the city.
Demand for commercial real estate in Gurgaon is skyrocketing and this is however the best
time to make handsome investments. Industry connoisseurs see a phenomenal growth in the
near future. With better infrastructure and world class facilities, commercial properties in
Gurgaon are the most sought-after. With ever increasing demand for good property and high
rentals in Gurgaon, the returns are excellent and incomparable. Leases are usually for a long
term, and renewable with rent escalation clauses.
The city of Gurgaon is fast emerging as a good place for investments in retail, residential or
commercial space. Rising demand from IT and BPO sectors in Gurgaon has led to an
unparallel increase in capital value for its commercial spaces in the past two years. Capital
appreciation in retail property stands at 20-35 per cent on an average.

41
Gurgaon also offers the most elite living experience to NRIs, who are scouting the western
environ to settle back in the country. Moreover, there is a proposal regarding setting up of
NRI City in Sectors 96, 97 and 98 of Gurgaon on an area of 360 acre.
Demand for commercial properties in Gurgaon is skyrocketing and this is however the best
time to make handsome investments. Industry connoisseurs see a phenomenal growth in the
very near future. With better infrastructure and world class facilities, commercial properties
in Gurgaon are the most sought-after. With ever increasing demand for good property and
high rentals in Gurgaon, the returns are excellent and incomparable. Leases are usually for a
long term, and renewable with rent escalation clauses.
The city of Gurgaon is fast emerging as a good place for investments in retail, residential or
commercial space. Rising demand from IT and BPO sectors in Gurgaon has led to an
unparallel rise in capital values for its commercial spaces in the past two years. Capital
appreciation in retail property stands at 20-35 per cent on an average.
So, high net worth individuals like NRIs can look forward to explore the prospects of making
investments in Gurgaon Real Estate for a long term and high returns.

GURGAON REAL ESTATE

Gurgaon is a young, vibrant and fast growing city on the map of India. Home to a number of
Indian and foreign MNCs like HCL Technologies & ST Microelectronics, Gurgaon is a
planned township close to Delhi. The city is very well planned and superior in its residential
and industrial infrastructure to any of its contemporaries. All areas have been categorically
divided into educational, institutional, industrial, recreational and residential. You can fullfill
your requirement for all kind of real estate in Gurgaon by the help of our Real Estate Agents
in Gurgaon.
The city gives a breath of fresh air with wide roads open with spacious roundabouts coupled
with green cover. The city is well connected with Delhi through the NH-8. Soon the city will
be connected to Dwarka Sub City by upcoming Dwarka Expressway, which will
considerably brighten its prospects at the same time as it will shorten the distance between
Dwarka and IMT Manesar.
With Gurgaon fast becoming unfeasible in terms of market rate and space, Gurgaon is
attracting attention of the prospective buyers lured by its best ambience, investor friendly
business environment and proximity to Delhi.

42
 2.7 MARKET PROFILE OF THE ORGANIZATION
The real estate segment in India is witnessing huge growth as most of the metropolitan cities
are escalating the property map with state-of-the-art projects. According to reports, an
estimated size of the Indian real estate sector is $ 12 billion of country's $ 600 billion
economy. The sector is witnessing a stable and further sustainable boom and the market is
expected to reach $ 45 billion in five years.
According to experts, the demand and supply for real estate properties is slated to grow much
higher in coming few years, which is leading
to the stability of prices.
The boom in the real estate market comprises of basically three sectors, viz. - residential,
commercial and retail. This boom in real estate market can be apparently observed in Delhi,
Gurgaon, Greater Noida and other major cities of the country. As the demand is escalating,
more and more players are entering the industry with a wide range of project to offer. The
developers are able to satisfy the most demanding buyers for residential, retail and
commercial properties with world class facilities. The number of available choices is wide
and the offered properties are highly profitable and special in their own.
The market trends in Indian Real estate sector are very healthy and are indicating towards a
positive trend for the long-term investor. The economy is growing at rapid rate i.e. 8%-9%
annually, which is creating a conductive business environment for organizations across
different industrial sectors. Other factors, which are likely to contribute to long term demand
for real estate demand in India, are rapid population growth, rising disposable incomes for
individuals and easy credit lending availability.

INVESTMENT TIPS IN REAL ESTATE

Generally the investment in Real Estate Property won't produce the get-rich-quick results, as
promised by many real estate agents. However for investors, who are willing to do some
homework, make a good purchase and properly manage a piece of property, the rewards can
be highly fruitful.
Investment in real estate can be done by the use of various strategies on the road to real estate
wealth. In one, investors generally flip properties by buying a house, renovating in short

43
order and selling it for a profit. In another strategy, investors purchase the property with the
intention to hold it for several years.
A general and most common approach for property investment in India is to buy an income-
producing property like a single-family home, an apartment building, an office or retail
building or farmland with the motive to rent the whole or units within it. By having tenants,
investors get benefit from not only the appreciation over time, but also the rental cash flow.
This strategy also provides the inflation protection because as the operating costs increase,
rents can increase as well.
Location is of prime importance, when you are planning to make investment in real estate
property and always impact the value of any piece of real estate. For residential properties,
the health of the local economy and the distance of school, medical facilities are necessary
considerations.
It is also important to check, whether the property is affordable or not, involves a little more
homework. Budget every cost, which will be tacked on to the price, including the closing
costs and insurance.
Having an exit strategy is as important as having a plan to enter the market. It is important
from the point of view of investors to properly estimate how long they expect to hold the
asset.
The downside in the real estate investment is that, it is not liquid. Investment in real estate
property -- unless you are buying shares in a real estate investment bonds – it is not as liquid
as putting money into the stock market. And real estate markets are generally cyclical in
nature.
It is important to watch out for:
• Overpaying for the property
• Overlooking rules and regulations
• Not screening for good tenants
• Taking on too much, too soon
• Entering into a bad partnership

44
VASTU TIPS
Vastu adds positive energies to your ambience whether be it home, office or shop.
Construction of buildings according to Vastu brings happiness, peace and prosperity. The use
of Vastu in construction is gaining popularity day by day, as it has no bad effects.

Components of Vastu Shastra-:

There are four categories of Vastu-
 Earth / Site- Bhoomi, the main dwelling place on which everything else rests
 Structures on the earth - Prasada
 Movable objects (vehicles) - Yaana
 Furniture - Sayana
The principles of Vastu Shastra extend from the macro level to the micro level, i.e. –
selection of site, planning and orientation, zoning and disposition of rooms, proportional
relationships between the different parts and the character of buildings.
Before you buy a plot / building, remember that:
 Yellow color soil is good for business class.
 Rocky, non-cultivable land is not good.
 Sale by unfortunate, distressed people should be avoided.
 Plots / buildings sold by rich people for reasons other then poverty or misfortune is
good.
 Rectangular plot with long north to south is better then long east to west.
 Wider front gate & narrow end is not good.
 Narrow front with wide back is good.
 Southern side road is not considered to be very good.
 Northern side road is good.
 A road on the Western side is reasonable.
 A small size plot between two bigger plots is not good.
 Reject any site with well towards North or East.
 Avoid a plot if it is in the neighborhood of any religious place, public places, like
marriage halls, hospitals, courts, factories and burial or cremation grounds.

45
  In the case, your plot is not rectangular see that at least South East and South West
Corners have a 90 degrees angle.
 Except in North East, if your land is elongated towards any other side it is not good.
 Never buy a plot, which is cut on the North East corner.
 If the North East corner of the land is extended it is very good.
 The South or West of the plot should be higher than North and East. If it is not so,
you should be able to make it so by filling and putting more soil on the same.
 If you are making underground water storage in your house, locate it in the North
East corner of your house.
 A road ending in the house is very bad.
 There should not be anything blocking your main gate, such as electric and telephone
pole or a tree or some other pillar. It is very bad.
 Gate of the plot on the North, North East or the East is very good.
Roads surrounding plots: -
 A square plot surrounded by roads on all four sides is excellent. You can buy it even
at a higher cost.
 If a road ends in your house from the North Eastern corner, it is considered to be very
good.
 Road on South is not good (can be good in some cases).
 Road on North or east is good.
 Roads in East and North are good.
 Road on West is ok, roads in north and west is ok.
LEGAL DOCUMENTS
Owning a property is an important thing in ones life. However, it is important to be careful
while buying land / property to avoid falling into legal hassles.
A lot of care is required from the beginning, which starts right from seeing the site till the
registration of land. The legal status of the property is one of the most important issues that
you should address before confirming a property. You should not give any advance before
getting confirmation about the legal status of the land / property.
Before buying a property, a number of checks are required to be made to ensure that the land
has a clear and marketable title. The first important thing is to find out the tenure, and the
legal right of holder of the land in government records. The possession right or tenure could

46
be freehold, leasehold or may be held under a government grant or 'sanad'. The most
preferable is the free hold land. The seller should provide all the essential legal documents to
the buyer.
The various important documents that a property buyer should avail from the seller are:
 Title deeds
 Tax receipts and bills
 Encumbrance certificate
 Agreement Registration
The legal documents that are required for buying residential / commercial property in India:
For salaried individuals
 Latest salary slip showing statutory deductions
 Form 16 (Declaration from the employer giving the details of income and
deductions, duly signed by an authorized signatory of the Company) OR Latest
acknowledged IT Returns
 Bank statements for the last 3 months

For self-employed individuals / proprietor

 Computation of income for the last 2 years certified by a C.A. OR P&L and
Balance Sheet for the last 2 years certified by a C.A.
 Copies of acknowledged IT Returns for the last 2 years
 Bank statements for the last 6 months
Partnerships
 Computation of income for the last 2 years certified by a C.A. OR
 P&L and Balance Sheet for the last 2 years certified by a C.A. OR
 Copies of acknowledged IT Returns for the last 2 years
Partnership Deed, Letter of Authority, Bank statements for the last 6 months, Proof of office.
Private Limited Companies
 Computation of income for the last 3 years certified by a C.A.
 P&L and Balance Sheet for the last 3 years certified by a C.A.
 Copies of acknowledged IT Returns for the last 3 years
 Memorandum and Articles of Association, Board Resolution, Bank statements for the
last 6 months
47
  Authority letter from all directors to accompany the application form with
photographs of authorized signatories, if not specified in the board resolution, Proof
of office Documents required for (NRIs)
Salaried NRI Applicants
 Copy of valid passport showing VISA stamps
 Copy of valid visa / work permit / equivalent document supporting the NRI status of
the proposed account holder
 Latest contract copy evidencing Salary / Salary Certificate / Wage Slips
 Overseas Bank A/C for the last 3 months showing salary credits
Self-Employed NRI Applicants
 Trade license or equivalent document
 Six months overseas bank account statement and NRE/ NRO account

48
 CHAPTER :3

DISCUSSIONS ON
TRAINING.

49
 3.1 JOB PROFILE
As we deal real estate, which is one of the most important sectors of industry, we understand
our responsibilities towards the society and our stakeholders. We have formulated our
policies and take decisions, which are based not only on financial factors such as profits or
dividends, but also consider the interests of customers, employees, shareholders,
communities, and ecological considerations in all aspects of our operations. We give prime
emphasis to:
 Ethical business practices
 Transparency
 Mutual benefit and

 Respect in relationship with clients

3.2 KEY LEARNINGS

 Handling the software easily.

 Experience of How to deal with Clients?
 Experience of preparing the documents.
 Easily identify the Market Scenario.
 How to deal with Brokers?
 Over all is that knowledge about the Real Estate Sector.

50
 CHAPTER 4:

STUDY OF SELECTED
RESEARCH PROBLEM

51
 4.1 STATEMENT OF RESEARCH PROBLEM
Some achievements often require long, tortuous, bitter experiences powerful enough to
derive one to despair. But one must rise above disappointments neglect and renew the
pledge-devoted action. This study is also bound to come up with some constraints and
limitations that made efficiency of the report low and to extend deviated from its main line of
thoughts. Thought no stone was left unturned to make this study more precise, accurate to the
objectives, yet there were some limitations, which are not so worthy to make my study more
meaningful. Some of the limitations are as follows-
 Time was the major constraint for conducting the study, as I am an industry-

integrated student it was difficult to devote sufficient time for preparation of report.

 The study involves a lot of cost and energy.

 As Faridabad is not representation of total population, the result to the extent may be

biased.

 Mainly persons didn’t feel interested in giving their views in the area of real estate or

they may give fake answers so, it is quite difficult to get at exact result.

52
 4.2 STATEMENT OF RESEARCH OBJECTIVES
The project titled procedures & documentation of CRES is clearly defined & based on
systematic research design to meet the objectives of the study. The logical analysis of various
aspects of the data is made to arrive at the results of the study.
The research process includes the following steps:
 Defining the problem.
 Statement of research objectives.
 Planning the research design.
 Planning the sample.
 Collection of data.
 Analyzing the data.
 Formulation of conclusion.
 Preparation of the report.

TYPES OF RESEARCH
 Exploratory Research
 Descriptive Research
Types of Research

Exploratory Research Descriptive Research

Exploratory Research
It is done to generate new ideas; respondents should be given sufficient freedom to express
themselves. It is generally based on secondary data that are readily available. Therefore
unable to frame detailed research questions.
Descriptive research
It is undertaken when researcher is interested in knowledge the characteristics of certain
groups such as age; sex; educational level; occupation or income; interested in knowledge the
proportion of it in a given population who have behaved in a particular manner; making the
projections of a certain things; or determining the relationship between two or more
variables, descriptive study may be necessary.

53
 4.3 RESEARCH DESIGN & METHODOLOGY
Data collection methods can be classified into two methods:
1. Primary methods
2. Secondary methods

PRIMARY METHODS
Data directly colleted by a researcher is known as Primary Data
The methods used for collecting primary data may be:
1. Survey.
2. Observation.

Sources of primary data

 Interview methods
 Mail interviews
 Telephone interviews.
 Projective technique
 Focus group interviews
 Questionnaire
 Structured
 Unstructured
 Semi-unstructured

SECONDARY METHODS
Data not originally collected for use in the research project under consideration, but rather for
use by some other person or for some other project are termed
Secondary Data -
It can be classified into two categories:
1. Internal Sources
2. External Sources

54
 Sources of secondary data

Internal Sources External Sources

Sales records
Credit records
Internal records
Published Commercial
Directories Demographic
Periodicals data
Financial records Store audit
Statistical records Diary panel
Advertising Explosives
It is a type of blueprint prepared developing on various types of blueprints available for the
collection, measurement & analysis of data. The design of a research study is based on the
purpose of the study.

Types of research design

 Qualitative Research Design.
 Quantitative Research Design. RESEARCH METHODOLOGY ADOPTED
Research design- Quantitative and Qualitative

Sampling plan-
1. Sample method- Probability Sampling
2. Sample size- Wide

Sampling design
Cluster and Area Sampling

Sources of data
Data collected by me is 65% secondary and 35% primary.

55
CHAPTER 5:

ANALYSIS.

56
 5.1 ANALYSIS OF THE DATA

Table 1. Summary Statistics

(1)(2)(3)(4)(5)(6)(7)(8)VariableMeanStandard deviationStandard deviationMean agent-
owned minus mean non-agent-ownedp-value of equality in column (4)Standard
deviationMean agent-owned minus mean non-agent-ownedp-value of equality in column
(7)Outcome variablesSale price, if the home sells271,405216,797151,33057,591<
0.01108,96048,445<0.01Sale price (logged), if the home sells12.330.5770.3350.128<
0.010.2460.117<0.01Days to sale, if the home sells93.62118.6113.324.18<
0.0197.1814.83<0.01Whether the home ever sells0.780.420.41-0.07< 0.010.36-0.04<
0.01Basic housing characteristicsNumber of bedrooms3.3150.840.7880.168<
0.010.5870.11<0.01Number of baths1.8181.2951.2420.196<
0.011.1080.14<0.01Number of other rooms4.0411.1661.0820.246<
0.010.8320.181<0.01Capacity of garage in cars1.690.6550.6010.065<
0.010.5040.075<0.01Full sampleWithin city and year:Within block
Notes: Summary statistics reflect our sample of roughly 98,038 single-family Home sales
over the period 1992-2002 in 34 Cook County, Illinois suburbs. Homes sold without real-
estate agents are excluded from the sample, as are Homes that are listed on the Multiple
Listing Service but do not sell, and Multiple Listing Service entries with data errors or
inconsistencies. All variables included in the data are self-reported by the real-estate agent
listing a home for sale. Columns 1 and 2 report information for raw data covering the whole
sample. Columns 3-5 present information after removing city fixed effects and year fixed
Effects. Columns 6-8 remove year fixed effects and city-block fixed effects. The Basic
housing characteristics listed represent a small subset of the control Variables used in the
analyses see the appendix for a full listing.
Table 2.The Impact of Agent-Ownership Status on Sale Price and Time to
Sale

Dependent
Variable:In sales (1) (2) (3) (4)
price of home)
Coefficient of agent 0.048 0.042 0.038 0.037
owned home (0.004) (0.004) (0.004) (0.003)
(Standard error )
R2 0.856 0.886 0.896 0.958

57
 1.2

0.8
Coefficient of agent
0.6 owned home

0.4 (Standard error )

R2
0.2

0
1 2 3 4
-0.2

Dependent Variable: Days to

Sale
Coefficient of agent 16.89 11.03 10.25 9.47
owned home (2.42) (2.40) (2.39) (2.25)
(Standard error )
R2 0.123 0.130 0.139 0.384
20

15

10 Series1
Series2
Series3
5 Series4

0
Dependent Coefficient of owned home (Standard R2
Variable: agent error )
-5 Days to Sale

Controls included :
City*year interactions Yes Yes Yes Yes
Basic house characteristics Yes Yes Yes Yes
Indicators of house quality No Yes Yes Yes
Keywords in description No No Yes Yes
Block fixed effects No No No Yes
―Excess return‖ of agent 0.039 0.036 0.032 0.032
assuming a 20% annual
discount rate

58
 “Excess return” of agent assuming a 20% annual discount rate

Yes

Yes

Yes

Yes

Yes
Yes

Yes

Yes

Yes
No
“Excess return” of agent assuming
a 20% annual discount rate
Yes

Yes

Yes

No
No
Yes

Yes

No

No No

0 0.01 0.02 0.03 0.04 0.05

Notes: Regression coefficients are reported in the table, along with standard errors in
parentheses. Results are based on a sample of 98,038 single-family home sales in 34 Cook
County, Illinois suburbs over the period 1992-2002. The dependent variable in the top panel
of the table is the natural log of the sale price; the dependent variable in the bottom panel is
the number of days on the market. Each coefficient reported in the table is from a separate
regression. The other variables included in each specification are noted in the table, but the
coefficients on these other variables are not reported here (Table 3 presents a subset of
coefficient estimates for these controls). See the appendix for a complete list. The table’s
bottom row reports the implied ―excess return‖ accruing to agents selling their own homes,
computed as the additional price received for a home adjusted for the extra time on the
market, under the assumption of a 20 percent annual discount rate.

Table 3. Sample of Coefficient Estimates on Control Variables

(Specification Including Block-Level Fixed Effects)

ln(sale price) Days to sale

Dependent variable:
Explanatory
Variable Coeff. S.F. Coeff. S.F.
Bedrooms ( 1 bedroom omitted)

2 bedrooms 0.177 0.013 5.02 10.77

3 bedrooms 0.264 0.013 13.85 10.76
4 bedrooms 0.325 0.013 25.10 10.81
5 bedrooms 0.378 0.013 36.64 10.95
6+ bedrooms 0.422 0.014 38.70 11.46

59
 100%
90%
80%
70%
Days to sale S.F.
60%
Days to sale Coeff.
50%
ln(sale price) S.F.
40%
ln(sale price) Coeff.
30%
20%
10%
0%
)

s
s

s
ed

m
m

m
itt

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oo

oo

oo

oo
om

dr
dr

dr

dr

dr

be
be

be

be

be
m
oo

6+
2

5
dr
be
(1
s
om
ro
ed
B

Rooms (not bed or bath, 7 or more omitted):

1 additional room -0.216 0.006 -30.09 4.60
2 additional rooms -0.196 0.005 -27.56 4.29
3 additional rooms -0.158 0.005 -22.23 4.21
4 additional rooms -0.126 0.005 -16.54 4.20
5 additional rooms -0.090 0.005 -10.76 4.29
6 additional rooms -0.054 0.006 -10.44 4.80
6 additional rooms

5 additional rooms

4 additional rooms
Days to sale S.F.
Days to sale Coeff.
3 additional rooms
ln(sale price) S.F.
ln(sale price) Coeff.
2 additional rooms

1 additional room

Rooms (not bed or bath, 7 or

more omitted):

-40 -30 -20 -10 0 10

Bathrooms (4 or more omitted):

1.0 bath -0.384 0.005 -48.79 4.05
1.5 baths -0.333 0.005 -46.40 3.89
2.0 baths -0.319 0.005 -44.53 3.77
2.5 baths -0.234 0.004 -38.52 3.52
3.0 baths -0.239 0.005 -32.32 3.78
3.5 baths -0.115 0.004 -25.79 3.45

60
 3.5 baths

3.0 baths

2.5 baths
ln(sale price) Coeff.
ln(sale price) S.F.
2.0 baths
Days to sale Coeff.
Days to sale S.F.
1.5 baths

1.0 bath

Bathrooms (4 or more
omitted):

-60 -50 -40 -30 -20 -10 0 10

Style:
American four square 0.028 0.005 -0.06 3.95
Bungalow -0.030 0.003 -1.86 2.18
Cape Cod -0.015 0.003 -3.68 2.20
Colonial 0.056 0.002 4.97 1.92
Cottage -0.049 0.006 4.65 4.50
English 0.057 0.004 1.14 3.26
French provincial 0.111 0.008 14.61 6.36
Georgian 0.031 0.004 3.16 2.95
Prairie 0.089 0.006 16.16 5.13
Quad-level -0.001 0.007 -5.30 5.39
Ranch -0.029 0.002 -0.20 1.70
Tri-level -0.013 0.003 6.99 2.46
Tudor 0.066 0.006 15.05 4.49

25

20

15

10 Days to sale S.F.

Days to sale Coeff.
ln(sale price) S.F.
5 ln(sale price) Coeff.

0
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T l
un re

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rg l
sq e:

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ot l

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ua iri
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ur yl

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Q ra
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ol

-5
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F
er
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-10

Notes: This table reports a subset of the coefficients on the control variables in the
specifications shown in column 4 of Table 2. See the notes to Table 2 and the appendix for
further details.

61
Table 4. The Impact of Agent Ownership by Sub-sample
(Values in table are coefficient on agent-owned indicator variable)

Sub-sample Magnitude of Dependent Dependent Implied ―excess

redicted agent-owned variable: variable: return‖ (20% annual
distortion ln(sale price) days to sale discount rate)
A. Heterogeneity of housing stock on the block
High High 0.043 9.45 0.038
heterogeneity (0.005) (3.68)
Moderate Medium 0.039 11.92 0.032
heterogeneity (0.005) (3.82)
Low Low 0.023 5.09 0.020
heterogeneity (0.005) (4.24)
14

12 Implied “excess return”

(20% annual discount rate)
10

8 Dependent variable:

6
Dependent variable:
4

2 Magnitude of predicted
agent-owned distortion
0
1 2 3 4 5 6 7 8 Sub-sample
-2

-4

-6

B. Time period
On the market 1992-1995 High 0.049 15.20 0.041
(0.007) (6.11)
On the market 1996-1999 Medium 0.032 7.99 0.028
(0.005) (4.14)
On the market 2000-2002 Low 0.029 2.47 0.028
(0.006) (3.98)

20

15
Implied “excess return” (20%
annual discount rate)
10 Dependent variable:

Dependent variable:
5

Magnitude of predicted
0 agent-owned distortion
1 2 3 4 5 6 7 8 Sub-sample

-5

-10

62
 0.06

0.05
Sub-sample
0.04
Magnitude of predicted
agent-owned distortion
0.03
Dependent variable:

0.02
Dependent variable:

0.01 Implied “excess return” (20%

annual discount rate)
0
1 2 3 4 5 6
-0.01

C. Buyer’s agent presence

Buyer’s agent absent * agent-owned home High 0.052 N/A N/A
(0.007)
Buyer’s agent present * agent-owned home Low 0.033 N/A N/A
(0.003)

Notes: All coefficients in the table correspond to variations on the specification reported in
column 4 of Table 2. Panels A and B divide the sample into mutually exclusive, exhaustive
sub-samples. The heterogeneity of a city block’s housing stock is computed based on the
Herfindahl index of styles of houses sold on the block in our sample period (e.g. Victorian,
Georgian, colonial, etc.). Blocks with fewer than three home sales over the course of the
sample are excluded from the analysis in Panel A. The remaining sample is divided into
equally sized groups based on the Herfindahl measure. Panel B divides the sample according
to the year that a house is originally listed for sale. Panel C adds interactions between
whether a buyer’s agent is part of the transaction and the agent-owned variable to the
baseline specification.

63
 5.2 SUMMARY OF FINDINGS

Some programs and research networks are dealing with topics associated to the realty sector
and they observe one of the most significative sectors of modern economies. Because of that
is so interesting to forecast some possible changes in horizon of 10 to 20 years. How one can
face these problems, and how it can be so decisively important.
Someone has rightly said that practical knowledge is far better than classroom teaching.
During this training I fully realized this and came to know about how a work is handled in
our organization in proper manner.
The report contains first of all brief INTRODUCTION OF CORPORATE REAL ESTATE
SOLUTIONS, INTRODUCTION OF REAL ESTATE INDUSTRY , COMPANY
PROFILE, RESEARCH METHODOLOGY, MARKET DISTORTIONS WHEN AGNTS
ARE BETTER INFORMED. Finally there comes data presentation and analysis in the end of
the project.
I also put some of my suggestion that they will help us to move a step forward to being the
very best.

64
 CHAPTER 6:

SUMMARY AND
CONCLUSIONS .

65
 6.1 SUMMARY OF LEARNING EXPERIENCE

Identification of the techniques used in handling the work which means that at the time of

working there are various tools and techniques used like the different types of softwares like

ERP, Real Estate Manager etc…Knowledge about the various strategies used to done work in

a manner.To find out the awareness among how property can be legally purchased.To

understand that how realty sector can grow in modern era.To evaluate success rate of these

policies.

I have learned so many just like how to handle the market situation in inflation?, How to

handle the customer Queries?, Preparation of the documents at the time Purchasing, Selling,

Leasing, Reselling the property?

66
 6.2 CONCLUSIONS AND RECOMMENDATIONS

Go for the Long Shot there are no such suggestions and recommendations on my behalf for

the whole company as I am only a small part of the company. So I can’t consider myself up

to that level that I can recommend for every part of the company.

But still, I can recommend few suggestions in the field of real estate as I have researched

and gone through the same experience as others manager or more I can conclude for the

future welfare and growth of the company as one of the part of the company, which are as

follows: -

 The work to be done should not be delayed by the colleagues as it creates many

disturbances and Mis-coordination..

Based on major findings of the study, the researcher has come out with some viable

suggestions:

1. To purchase the property require all legal documents.

2. Will not be better if at the time of purchasing property documents are not completely

fulfilled.

67
 APPENDICES

Observed House Attributes Included in the Analysis

Basic measures of house scale
Number of bedrooms (categorical): 1, 2, 3, 4, 5, 6+
Number of bathrooms (categorical): 1, 1.5, 2, 2.5, 3, 3.5, 4+
Number of other rooms (categorical): 1, 2, 3, 4, 5, 6, 7+
Number of garage stalls (categorical): 1, 2, 3, 4+
Indicators of housing quality
Number of fireplaces (categorical): 1, 2, 3+
Presence of (dummy variable equaling one if attribute is present in house):
Master bath, central air conditioning, other air conditioning
Home age (categorical): unknown, 0-5 years old, 6-10 years old, 11-25 years old, 26-50 years
old, 51-100 years old, 100+ years old
House exterior style (categorical): American four square, bi-level, bungalow, Cape Cod,
contemporary, colonial, cottage, English, farmhouse, French
provincial, Georgian, prairie, quad-level, Queen Anne, ranch, step-up ranch,
traditional, tri-level, tudor, Victorian, other
House siding (categorical): aluminum or vinyl, brick, wood, stucco, other
Keywords used to describe home in listing (dummy variable equaling one if
word/phrase or some shortened variant of it is used in the home description)
needs updating, estate sale, foreclosure, handyman, as-is, needs, TLC, rehabber’s, bank-
owned, priced for a quick/priced to sell, motivated, potential, youthful, close, !, new,
spacious, elegance, beautiful, appealing, renovated/remodeled, vintage, state-of-the-art,
maintained, wonderful, brand new, fantastic, charming, stunning, amazing, granite,
immaculate, breathtaking, neighborhood, spectacular, landscaped, art glass, built-in, tasteful,
must see, fabulous, leaded, delightful, move-in, gourmet, copper, Corian, custom, unique,
maple, newer, hurry, pride, clean, quiet, dream, block, huge, deck, mint, stately

68
 BIBLIOGRAPHY

Websites:

 www.suryaglobal.com

 www.suryarealtors.com

 www.google.com

Newspapers:

 The times of India

 Hindustan times

Books:

 Research and methodology - By C.R. Kothari

 Research and methodology - By C.B. Mamoria

69
 QUESTIONNAIRE

1. Do you need property?

Yes No

2. What is your opinion about Real Estate?

…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………

3. Which is the best way to buy the property?

…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………

4. What extra benefits to purchase the property?

…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………

5. Do you have ever purchased any property?

Yes No

6. According to you which real estate company is performing best now days and on what
basis?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………

7. Is the information provided by you above is based on your:

Knowledge Personal experience

Judgment Other sources

8. Real Estate Sector is developed with previous record?

Yes
No

70