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AMITY SCHOOL OF BUSINESS INTERNSHIP REPORT ON

REAL ESTATE MARKETING (NCR)

Faculty guide Mrs. Geetanjali Gulati


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MADE BY CHETAN (A3914709014) (A12) BBA M&S 2009-2012

ACKNOWLEDGEMENT
I would like to take this opportunity to thank the following people who have directly or indirectly contributed towards the completion of this dissertation and without their help this in the present form would have not been possible.

I am very much thankful to Mrs. Geetanjali Gulati, Faculty Guide for giving me opportunity to work on such a nice project as my project. And last but not the least my special thanks to my parents without their support my Internship would not have been possible.

Chetan

Objectives

Following Are The Prime Objectives Of This Study: To Present Industry. An Overview Of The Real Estate

To Critically Analyse The Future Trends In Real Estate Industry. To Critically Evaluate The Position And Prospect Of Major Players In Real Estate Industry. To Enquire About The Future Prospect Of Real Estate Industry.

TABLE OF CONTENT
Topics 1. Synopsis 2. Introduction 3. Latest Prices 4. Prospect in Real Estate Industry 5. The Major Players of Real Estate Marketing 6. The 3C Company 7. Unitech 8. Ansals API 9. Experiencing Boom in the Real Estate Sector 10. Marketing Strategies of the Real Estate Industry 11. Market Response and Adjustment 12. Analysis 13. Recommendation 14. Conclusion 15. Bibliography

PREFACE
In India real estate were presuming to be just sale and purchase of the property in the market and attaching the word with real estate broker/agents. But the scenario has tremendously changed. The sector now have become well organized industry with the major players performing well in the field Lot of players have entered in the market predominantly the DLF, UNITECH, 3C, PARSAVNATH, ANSALS AND OMAXE. They are well established corporate. They have well established marketing strategy for facing changing democratic and environmental scenario . Liberalization has made the sector very attractive for investment and growth .Government had open the route for FDI and public private partnership (PPP) for major infrastructural and development project in the state of NCR the state alone are the hub of major real estate activities in India the average worth of Rs 20000 cr. have been already invested in the state which will an estimated return of 15-23% on the investment The proposed plan of the government to create 46 new SEZ on which 6 new SEZ will be created in Delhi and NCR alone which will give new positive shift to the town ship developers to invest heavily in area lying under SEZ. On the ground of business strategy Delhi and NCR is playing pivotal role in the eyes of think tanks of various companies they want to capture major market through their various commercial and residential projects. Therefore state is the ideal place to live or to invest in it.

SCOPE OF THE STUDY


This research is important to prospective real estate investor , students, entrepreneurs and developers who are having stakes in different small and mid size project in Delhi and NCR This may be of special interest to

marketing students who would like to know more about the practical step by- step side of marketing world, rather than only the theoretical aspects taught in business schools.

RESEARCH METHODOLOGY
The following methodology carried out for the research on backward integration in knitted garment industry is as follows.

1. Description of the Research This research on will consist of exploratory research as well as conclusive research. It begins with a hypothesis, and to arrive at a conclusion, which includes secondary data as well as information from case data and questionnaire.

2. Data Collection Methods The Sources of secondary data that are used are Libraries & resource center Internet Sites Books, News papers, Magazines & Journal Trade promotion council & Organization

The method of primary data collection is Direct interviews of the exporters Case Study of an export house

3. Field work The fieldwork in this project consisted of data collection through taking the interviews and doing the case study.

4. Analysis Finally interpretation will be drawn from the analysis of the information gathered

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INTRODUCTION
Real estate is a business, not a profession. Real estate is sometimes inaccurately spoken of as a profession, but it is essentially a business. A profession applies science, art or learning to the use of others, the profit to the professor or person applying it being incidental; whereas a business is engaged in primarily for profit, and the profit is to the one engaging in the business. But whether real estate be a business or a profession has no connection at all with the body of ethics governing it. Every business can be conducted upon a plane ethically as high as the ideals of any profession, and the men who have been conspicuously successful in the real estate business have attained success because they have applied to their business the highest ide als of commercial fair dealing. This does not mean that there is any ethical requirement for the seller or the purchaser to give away anything which belongs to him, or for either one to disclose to the other his necessity for selling or his requirements fo r buying; but the bargain having been made, it is absolutely necessary that it be lived up to by both parties, according to its intent; and, if there be any doubt of the intent of the bargain as it is expressed in writing, that the spirit of the transaction be carried out rather than that the catch words of a written instrument should govern. Cases are frequent of men who to their own detriment perform the thing which they have promised to do although not legally obligated, and the bigger and more successfu l the man who 11

makes the promise the more surely will it be carried out. Important obligations are often incurred upon the mere promise of a well -known man to sell an important piece of property at a definite price, although no legal and enforceable obligation exist ; and the promise is always redeemed if it is made by a man who knows the business, and it is redeemed not merely from altruistic motives, but also for purely business reasons. Divisions of the business.The principal divisions of the real estate business are investment, operation and agency. These differ from one another according to the aims of the persons engaging in them and the methods by which those persons expect to make their gains. To conduct either of the first two divisions of the business, investment or operation, actual money capital is required. The most important capital in the agency business is the good will of its customers, and that can be marketed, increased and made very valuable for investment. Investment is the employment of capital in the acquisition of real estate or interests therein for permanent ownership or actual use of the person acquiring it. Operation is the employment of capital in the acquisition or improvement of real estate or interests therein for commercial operations. Agency is dealing in or with real estate on behalf of others. Investment in real estate is generally made for either of two purposes : (a) to derive an income, (b) to hold for resale in expectancy of an increase in value.

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Investment for income may be for one of two purposes, (1) the derivation of rentalthat is, the direct return for the use of real property for definite periods, or (2) the obtaining of income through others upon money lent on the security of real property. ECONOMIC OUTLOOK The Centre for Monitoring Indian Economy (CMIE) estimates that India's gross domestic product (GDP) will grow significantly by 2006 -2007. From July 1, for high-value real estate transactions, Form 37(I) Income Tax clearances are not required. Budget 2006 had provided for the repeal of this provision allowing the government the pre-emptive right to purchase immovable property. This is a progressive step that significantly reduces the three-month waiting period before large-value transactions could be registered. A Rs 50 billion (US$1.02 billion) Urban Reforms Incentive Fund (URIF) has been proposed to motivate agencies at every level to undertake infrastructure reforms. Extra funds have been announced to those States pushing reforms, especially in the con text of the Urban Land Ceiling Act. The soft interest rates regime has lowered cost of funds to housing finance institutions, translating into a drop in interest rates. This has triggered off a large take up of finance by end users.

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CURRENT SCENARIO Office markets showed signs of revival towards the end of Q1 2006, post September 11. Outsourcing drove these to India of 'back office operations' of financial institutions and call centres. The market is now looking more buoyant, with most corporates perceiving the travel advisories as an overreaction. In Delhi, rental and capital values continue to be soft and the principle business districts are seeing movement of small corporates from secondary markets to the CBD, focussed on A or B+ grade buildings. The suburban markets of Gurgaon and Noida are driven by larger space requirements of IT-enabled service (ITES) providers, primarily call centres. Major corporate offices are also relocating from the CBD to Gurgaon in Delhi and NCR, primarily driven by quality and size of space offered. Landlords are offering single flexible and divisible floorplates of upto 25,000 sq ft. There is a clear link between shifting corporate destinations and the boost this provides to housing. This is evident in Gurgaon in Delhi whe re residential take-up has been in tandem with corporate influx. The middle to upper middle class residential market is active across the country. This market is driven by:

Tax incentives offered by the government on housing loans.

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Lack of other attractive investment options such as the stock market or personal savings schemes. Improvement of transport linkages. Good quality products offered at reasonable cost by developers to boost lack-lustre markets The last quarter saw fresh leasing activity i n Gurgaon with space commitments of approx. 150,000 sq. ft. However, values are expected to continue to be under pressure as new supply of over 65,000 sq. ft. is added. In the next 8-12 months, demand for IT enabled services will be in excess of 1.2-1.4 million sq. ft. Approximately 65% of this demand is likely to be split over 6 cities: Mumbai, Pune, Delhi, Bangalore, Hyderabad and Chennai. In the last 2 to 3 years corporate had observed a shift in the Delhi area most of them are now function from gurgaon and maanesar area which was earlier not as a favorable investment place this shift has occurred due to increase in the price level at CBD area of Delhi.

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LATEST PRICES
OFFICE MARKET CURRENT SCENARIO Corporate take-up is driving Delhi's office market as well as call centers and other IT-enabled users. Tenants are generally seeking fully fitted office space. In the CBD, such space is often vacated by corporates who have relocated to the suburbs. Sometimes landlords fit out space to attract good tenants. T akers of smaller office space such as Infar, Tellabs and Frederic R Harris in the CBD have opted for fully fitted facilities, vacated by previous tenants. In Gurgaon and faridabad too, there has been take-up of fully fitted accommodation. Most landlords offer air conditioning and power back up, supported by professional real estate property management. In the CBD, landlords of properties such as Ashoka Estate and Hindustan Times House have improved these buildings, which have enabled them to upgrade tenant profile. The industrial areas of Udyog Vihar, Okhla and Mohan Co -operative and faridabad too are seeing take-up by IT-enabled services. In the suburbs, developers have land and schemes, which are being marketed to corporates with large build-to-suit requirements. Noida and Gurgaon offer buildings with such larger floor plates which cater to large space users.

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At present, Noida has better road infrastructure than Gurgaon. However, a six-lane flyover project on the National Highway 8 is scheduled to start soon in Gurgaon. This will improve the road connectivity to Gurgaon from Delhi. Both faridabad and Gurgaon have emerged as prime residential locations, which produce an English-speaking workforce capable of servicing call centres, and IT enabled services companies. There are approx 40 call centres operational in Gurgaon and faridabad. Call centers typically employ upwards of 100 people at a per-person-per-sq ft ratio of 70. Call center space take-up is therefore typically in excess of 7,000 sq ft upto approx 200,000 sq ft. Large players such as GE Capital, EXL Services, Spectramind and Daksh have head counts upwards of 2,500 operating out of multiple locations.

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PROSPECT OF DELHI AND NCR IN REAL ESTATE INDUSTRY


The state of Delhi and NCR has emerged pioneer in the real estate growth in the country. it is well known fact that the state is highest FDI getter in the sector and all the major players of the industries have their base in the state their fore Delhi and NCR has edge over engineering and technologies on other part Real Estate Development has emerged as a principal growth engine for economic development in this country. With the economy is on an upswing, the emphasis today is on bridging the massive backlog in infrastructure and housing sectors. This coupled with increased paying capacity, rapid urbanization and policies like FDI in urban development sector has made Real Estate Development a lucrative investment option. The Real Estate Development sector has the capacity to pay for itself without straining the limited resources of the State Govt. However, to ensure the desired development, it is necessary to have a clear view of the proposed development and a regulatory framework with legal backing in place. On this basis, Delhi and NCR has been able to invite private sector to invest in the State and we are proud to say that as of now the model followed by State Govt in this regard is being followed by other States also. The geographical location of the Delhi and NCR is such that it encompasses Delhi-the National Capital on three sides. Its other towns in

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rest of the State are also well connected. Therefore, the entire State offers good investment opportunities for Real Estate Development. The results are for everyone to see at Gurgaon, Faridabad and Noida. Besides this, there are other factors responsible for large scale private sector investment in the State. The Development Plans for all important towns in Delhi and NCR have been prepared for the prospective year 2021 to divide t he entire urban land into various land use zones like residential, commercial, industrial etc. On the basis of this development plan, the State Govt agencies as well as private sector investors undertake development in the State. Similarly, legal framework in the form of Delhi and NCR Urban Development and Regulations of Urban Areas Act, 1975 and Rules, 1976 are applicable in the State. This Act gives the regulatory framework for private investment in the State. The framework is further supplemented by exec utive instructions wherever necessary . A responsive techno-administrative set up which responds to the national and international trends in urban development is the biggest asset of the State. All investment proposals are viewed as an opportunity by the S tate Govt. and are treated positively keeping in view the interest of the State as well as of the entrepreneurs. However, in order to avail such opportunities, the Government of Delhi and NCR is creating conditions that are conducive to more investment.

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THE MAJOR PLAYERS OF REAL ESTATE MARKETING

The 3C Company is a pioneer in conceiving and executing Green Developments in Delhi and NCR. With the prime focus on delivering state of the art energy efficient buildings the group has already delivered over 12 Million Sq. Ft. of niche developments and is presently working on projects worth over Rs. 15000/- Crores. The 3C Company is the only team in Asia which has to its credit Three PLATINUM Rated & Two GOLD rated LEED CERTIFIED GREEN BUILDINGS by USGBC (United States Green Building Council)

The 3C Company brings together the unparalleled occurrence of three nationally acclaimed professionals from the fields of Architecture - Mr. Vidur Bharadwaj, Construction - Mr. Surpreet Suri and Development - Mr. Nirmal Singh. It was their far sightedness that has led them to be pioneers of environment friendly creations. Led by these three highly qualified and experienced specialists is a team of 400 professionals working towards the cause of reducing the carbon footprint on the earth.

The unique identity of 3C is driven by the motto of "Creating, Caring and Conserving" which also reflects their USP - Environment Friendly Creations. 3C works on a dynamic integrated business model that provides an end-to-end solution to its clients. Through the in-house teams - Architecture, Engineering, Project Management, Interior Designing and Facility Management (individual profit units) the company has executed impressive projects in all realty verticals - Offices, Residences, Hotels, Hospitals etc. 3C is also contributing towards providing world

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class education facilities for young minds by developing and successfully running LOTUS VALLEY INTERNATIONAL SCHOOL, Noida & Gurgaon.

Today when, a lot of major players in the construction and development industry are still accumulating their resources to develop environment friendly construction solutions 'The 3C Company' has already set very high standards and created benchmarks in the concept of GREEN CONSTRUCTION for others to follow. Pledged towards reducing the carbon footprint on the earth, the company has been creating buildings that are truly sustainable in form, function and use. These sustainable developments not only use far less natural resources and energy in the process they are built but are also more durable and require less maintenance.

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THE 3C MANDATE
Corporate Philosophy We are here to convert the expertise and experience of highly talented work force towards creating sustainable developmentshelping to reduce the Carbon Footprint on the earth.

Core Values As an organization we feel responsible towards Our Clients, Our Team and above all the Human Race. This impels us to develop only GREEN BUILDINGS that help live in a healthy and a happy environment at a reasonable cost. These sustainable developments use far less natural resources and energy in the process they are built and used. Vision Integrated Green Developer creating buildings that are truly sustainable in form, function and use.

Mission To be globally recognized as an Integrated Green Developer that is Creating, Caring and Conserving.

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Unitech entered civil engineering in 1974 with its sights firmly set on the future. Building upon experience and expertise Unitech is constantly looking for ways to satisfy its customers in the best possible manner. From power transmission lines and highways to theme parks, from steel plants to residential developments, from indoor stadiums to hotels its work is often pioneering and always challenging. Its enviable track record proves its ability to deliver. Unitech has invested in all the sectors of real estat e business namely residential, commercial and retail & leisure. It has innovatively built homes, offices, shopping malls, theme parks, hotels and schools in over past two decades. Homes (Residential) - In residential sector Unitech has done tremendously well and has been building homes at a breakneck speed. The company has built houses and villas keeping on mind the demand of different classes of people. It provides a wide range and variety of houses to choose from. It has built countless homes. Some of its famous constructions in residential sector are Escape, Uniworld Gardens, The Close, Uniworld city, The World Spa, Heritage City, Unitech Heights, Unitech Horizon, Vista Villas, Greenwood City, Rakshak, The Palms, etc.

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Shopping Malls & Theme parks (Retail & leisure), Hospitality sector and Schools Unitech is going to make huge investment in the family entertainment centers and amusement parks in Delhi, Gurgaon and Noida. These would be fully integrated family entertainment and amusement complexes with Amusement, shopping, multiplexes and hotels. One of such amazing projects is The Great India Place. The Great India Place is retail and entertainment complex as part of Entertainment City, an international standard amusement park. This integrated mix -use destination also convinces with its prime location near Sector 18, right at the entrance of Noida. Spanning 1,500,000 sqft, it is the largest retail development in India.

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Ansal API has almost four decades of pioneering and successful track record of real estate promotion and development, both in residential and commercial segments and it is well known name in the delhi ncr circle ansal API has provide new growth opportunities. in the real estate sector Starting with Ansal Plaza, which has ushered in the shopping mall revolution in the country, development of well known Satellite Townships and land mark high rise commercial properties, the Company has now taken on the baton of pioneering development in many spheres apart from tier II cities. , An ISO 9001:2000 company, it has gained recognition over the period of time as a premier organization in the field of housing, institutional, commercial and industrial construction. It has pioneered many consumer-friendly innovations too.ansals has first directed the government. Ansals had first directed the centre government about the use of land as plot to build the commerciall prject . they statrted one of the project in the delhi alone in the name of the ansal building in 1977 in old delhi from their ansals have grown in their ventures Ansals have marketed their project from 80;s when they built another company in the name of ansals build well .Their main concentration is in thebuilding of office space more than the commercial one but now they

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have shifted towards residential area and build the well known suahant city in gurgaon with the average price tag of minimum one crore rupees Most of these companies are in the direct marketing mode

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EXPRIENCING BOOM IN THE REAL ESTATE SECTOR IN DELHI AND NCR FAVOURED MARKET
THE real estate market in India is on a high growth curve, on the back of a booming economy, favorable demographics and liberalized FDI regime, although issues such as lack of land reforms and absence of substantial tax incentive for real estate development still need to be addressed. In India's fast-growing economy, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors. The real estate sector will continue to derive its growth from the booming IT sector, since an estimated 70 per cent of the new construction is for the IT sector. Besides the demand from the IT sector, the basic need for modern real estate would provide lucrative opportunities for investment. All the major companies are capitalizing on situation arise in comparison to other part of the country price level in Delhi and NCR specially in gurgaon and respected area are burgeoning with faster rate which obviously favored the market and become the reason for more investment. Low interest rates, modern attitudes to home ownership (the average age of a new homeowner is now 32 years compared with 45 years a decade ago), economic prosperity along with a change of attitude amongst the young

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working population from that of `save and buy' to `buy and repay' and liberalized FDI regime have all contributed to this boom Listing out the challenges for the real estate market in India, the Indian Government's tax policy was not in tandem with the liberalization initiatives being undertaken in the sector. There are no substantial tax incentives for real estate development except in the limited circumstances. Even in these situations, the tax incentive windows have a short life left. The prevailing tenancy laws in India are not in favour of owners of the land," it said. The Urban Land Ceiling Act and Rent Control Acts have distorted property markets in cities, leading to exceptionally high property prices, it said. Moreover, a high percentage of land holdings do not have clear titles. Land is generally non-corporatised and is typically held by individual or families. This restricts organised dealing, and hinders transfer of titles. Legal processes for property disputes are time consuming, adding that despite repeated calls for the rationalisation of stamp duties, they continued to be as high as 10-13 per cent in certain states. Once the Government puts into place land reforms and addresses the challenges facing the real estate sector, this sector has the potential to contribute immensely to the country's GDP Although Government has not undertaken capital market level deregulation measures, such as allowing REITs (whether domestic or foreign owned) to operate in India, in 2004 it had allowed international and domestic 28

companies to operate real estate funds/pooled vehicles through the private equity fund route. The move combined with the boom in the real estate market opened the doors for a host of realty funds. While most funds were initially floated by financial Institutions or banks such as HDFC, ICICI Bank and Kotak Mahindra Bank, real estate developers like DLF Universal and even retailers such as Pantaloon have now entered the arena for creating more retail facilities.

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MARKETING STRATEGIES OF THE REAL ESTATE INDUSTRY


THE MARKETING CONCEPT The marketing concept is a business philosophy that challenges the three business orientations we just discussed. Its central tenets crystallized in the mid-1950s. The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets. The marketing concept has been expressed in many colorful ways: "Meeting needs profitably." "Find wants and fill them.' "Love the customer, not the product." "Have it your way.' (Burger King) "You're the boss." (United Airlines) "Putting people first." (British Airways) "Partners for profit." (Milliken & Company) Theodore Levitt of Harvard drew a perceptive contrast betwee n the selling and marketing concepts:

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Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller's need to convert his product into cash; marketing with the idea of satisfying the needs of the c ustomer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it. The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and profitability. They are il lustrated in Figure

where they are contrasted with a selling orientation. The selling concept takes an inside-out perspective. It starts with the purchasing of land,

focuses on existing products, and calls for heavy selling and promoting to produce profitable sales. The marketing concept takes an outside -in perspective. It starts with a well defined market, focuses on customer needs, coordinates all the activities that will affect customers, and produces profits by satisfying customers. see the Marketing Insight Scholars and Dollars: Marketing and Selling Comes to College. Target Market Companies do best when then choose their target market(s) carefully and prepare tailored marketing programs

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CUSTOMER NEED A company can define its target market but fail to correctly understand the customers' needs. Consider the following example: A major real estate company invented a new substance that on the preparation of building the marketing start with that very first day they invite application for seeing that building and company bear all the cost of customer to see the potential building. Looking for an application, the marketing department decided to play a lot system on the basis application and a lot one plot only on the basis of draw of lot. The compa ny created a few model marketing and exhibited them at a site show. Understanding customer needs and wants is not always simple. customers have needs of which they are not fully conscious. cannot articulate these needs. interpretation. Customer can be segmented on the following basis wheather they able to explain their need or not 1. 2. Stated needs (the customer wants an average home) Real needs (the customer wants a expensive locality, not its initial price, is low) 3. Unstated needs (the customer expects good service from the devloper) Some Or they

Or they use words that require some

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4.

Delight needs (the customer would like the dealer to include a gift of a U.S. road atlas)

5.

Secret needs (the customer wants to be seen by friends as a savvy consumer)

Responding only to the stated need may shortchange the customer. Consider a woman who enters a hardware store and asks for a sealant to seal glass window panes. This customer is stating a solution, not a need. The salesperson might suggest that tape would provid e a better solution. The customer may appreciate that the salesperson not her need, not her stated solution. A distinction needs to be drawn between responsive marketing, anticipative marketing, and creative marketing. A responsive marketer finds a state d need and fills it. An anticipative marketer looks ahead into what needs customers may have in the near future. A creative marketer discovers and produces solutions customers did not ask for but to which they enthusiastically respond. Hamel and Prahalad believe that companies must go beyond just asking consumers what they want: Customers are notoriously lacking in foresight. Ten or 15 years ago, how many of us were asking for cellular telephones, fax machines, and copies at home, 24-hour discount brokerage accounts, multi valve automobile engines, compact disc players, cars with on-board navigation systems, hand-held global satellite positioning receivers, automated teller machines, MTB, or the Home Shopping Network?

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Why is it supremely important to satisfy target customers?

Because a

company's sales each period come from two groups: new customers and repeat customers. One estimate is that attracting a new customer can cost five times as much as pleasing an existing one. And it might cost sixteen times as much to bring the new customer to the same level of profitability as the lost customer. customer attraction. Customer retention is thus more important than

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ANALYSIS
1. As Delhi and NCR enjoys goodwil in having branded companies the government should assure better support structure to these companies to extend their customer support andprovide better product and services to customer. 2. Due to stiff competition in the real estate market companies should focus on the Quality of homes provided and shall also try its best to meet different kind of requirement of different buyers. 3. Due to the current oversupply situation in the market companies should resist from increasing price of its property. 4. The companies in the business should help and lure the prospective buyers by helping them in getting housing loans. It shall collaborate with some popular banks for this purpose. These days even banks are more than willing to provide home loans. 5. These days companies should provide the right amount of greenery in its housing complexes, as pollution free environment is a very important factor that people consider while purchasing the property.

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RECOMMENDATIONS
After the government has recentl y allowed foreign direct investments (FDI) in defence as also banking and pharmaceutical sectors, the question is now being asked as to when the real estate sector will be finall y opened up for 100 per cent FDI. This is the sector that needs such investments the most, in view of the existing huge dema ndsuppl y gap as also lack for adequate resources. Since the real estate sector is a key component of the infrastructure of any econom y, factors inhibiting its growth have a subsequent negative impact on the econom y. As per a study conducted by the Unite d Nations, by the year 2015, 10 of the world's 15 largest cities will be in Asia (excluding Japan) and three of these will be in India. And Hence, thet government should take initiative to overcome any short of any economic bottlenecks. The development of new towns and cities which are on the anvil, requires huge amount of investments and technical expertise which cannot be met by the domestic developers which still work in a very disorganised manner. In order to attract investment, it is imperative that the government increases the comfort level of the investors through appropriate legal measures and an effective regulatory framework, besides allowing repatriation of profits. India has strong occupier demand in the IT sector, tackling the realities of co rporate and legal restructuring as it impacts propert y in moving forward e.g. addressing the inequities of the rent act legislation in Mumbai or VRS in selected industries with significant real estate holdings, but there remains a long way to go. It is the responsibility of the government to think in this area. Since the real estate in the country has always been characterised by lack of transparency, poor project performance of developers lacking

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credibilit y and other factors of an unorganised, unstructu red nascent market, foreign investors would be extremel y cautious before bringing in large-scale investments. Moreover, legislations allowing FDI will not be sufficient. Other complementary measures such as scraping of ULCRA by the states (following the l ead given by the central government), reforming the Rent Control Act, rationalisation of stamp duties and propert y tax etc will need to be undertaken. Other proposed reforms include the development of securitisation in the sector, enactment of suitable fo reclosure laws, giving fiscal incentives to real estate market like lower interest rates, tax incentives, secondary mortgage market, etc. "India has high cost of

capital which makes real estate more expensive and FDI can certainl y help the industry on thi s front Besides FDI the government should formulate policies to develop and encourage both international and domestic funds like Real Estate Investment Trusts (REITS), Real Estate Mutual Funds. Measures to provide cheaper and better housing, increase in su ppl y of qualit y offices, factory and retail space, developments which will check prices, improvement in overall infrastructure, all of which will have a multiplier effect, accelerate foreign investments and increase

employment. "While finalising the poli cy guidelines, care needs to be taken to ensure that this investment does not flow onl y into purchase of small pieces of land and construction of buildings thereupon but essentiall y directed to wards development of townships, provision of `on site' infrastructure and contribution towards the construction of housing for economicall y weaker section of society FDI will enable the organized sector to fund large projects and township projects which are unaffordable and unviable. The

government policy with regard to FDI should be bold and the entire 37

package needs to be modular providing for different percentage of investments with integrated cities, as also stand alone commercial and corporate projects.

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CONCLUSION
1. The major external factors which people consider while purchasing the property are Price, Availability of loan and Proximity to workplace. 2. The major In-Locality factors which people consider while purchasing the property are Quality of construction, Availability of water and Pollution-free environment 3. Perception of people about different cities of NCR Location wise Gurgaon and Noida are adjudged the best by the respondents Business opportunity wise Gurgaon due to the mass presence of BPO company and offices of MNCs and Noida and faridabad due to its proximity to Delhi are consider good by the majority of respondents. In Quality of living again Gurgaon and Noida leads the pack but out of the two Gurgaon is better due to the existence of Higher and upper-middle class people in large number. In Law and Order all the places are bad as per the respondents but out of the five Gurgaon is the best. As far as infrastructure development is concerned Greater Noida enjoys good reputation among the respondents of all the three cities. 4. In totality, both Location as well as Affordability together account for more than 95 % of the total responses. 39

5. In Gurgaon major reasons other than affordability and location, to purchase the property were proximity to workplace and healthy environment.

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BIBLIOGRAPHY
www.unitechgroup.com www.ansalspropertiesltd.com www.omaxe.com www.realestatencr.com www.estatedeveloper.com www.indiaproperty.com Business Standard Times Property HT Property International Real Estate summit Hong Kong report

India Today Buyers Guide November 2004 Edition

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Real Estate Questionnaire


If you would please take a few moments to answer the following questions, I will be much more able to help you find a home that matches your needs. When you are finished filling out the form, please press the "Send Now" button at the bottom of this form. . Thanks very much for your time! I look forward to working with you.

My name and address are as follows:

Name : City: Postal Code: Work : Pager :


Comments:

Address: State/Prov : Country: Home : Fax: Cellular : E-mail:

My phone numbers and e-mail address are:

A. what would be your preferable value category?

under $200,000 (condos) $200,000-$250,000 $251,000-$350,000 $351,000-$500,000 $600,000 or more


B. how many bedrooms would u like to have?

1-2 3-4 5 or more


C. preferable amount of square footage of living area?

Under 1,400 1,400-2,000 42

2,000-5,000 5,000 or more


D. preferable lot size?

Average Tract size 1/4 - 1/2 acre 1/2 - 1 acre 1 - 5 acres 5 or more acres
E. which type of neighborhood you would like to investigate (check all that apply):

Urban Suburbs Town Mountain Area


F. what will u consider?

only single family homes only condos and townhomes both of the above
G. Would you like to sell your present home before considering the purchase of another home. how much do you expect its selling price?

$200,000-$250,000 $251,000-$350,000 $351,000-$500,000 $501,000-$750,000 $751,000-$1,000,000 $1,000,000-$1,500,000 Over $1,500,000 I do NOT need to sell my present home before purchase.
H. Area (check all that apply):

Santa Clara County/San Jose Cupertino Saratoga Los Gatos 43

Morgan Hill Santa Cruz County Palo Alto Other


I. when do you need a new home:

Immediately In 90 days In 6 months Within a Year Have a wonderful day, and thanks again for your time. We'll be in touch!

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