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PROJECT REPORT ON
Submitted By: PULKIT CHADHA TANVEEER KAUR MAYUR BHASIN JOY CHARLES PURNANSH GUPTA PRASHANT SIDHU
ACKNOWLEDGEMENT
We take immense pleasure in completing this project and submitting the summer project report. We would like to thank DLF Limited for giving me an opportunity of learning and contributing through this project. We also take this opportunity to thank all those people that made this experience a memorable one. A successful project can never be prepared by the single effort of the person to whom project is assigned, but it also demand the help and guardianship of some conversant person who helped the undersigned actively or passively in the completion of successful project.
TABLE OF CONTENTS
I. II. EXECUTIVE SUMMARY INTRODUCTION About the Industry Why Real Estate in India Present Scenario of Real Estate in India Real Estate in Delhi III. RESEARCH METHODOLOGY Research objectives Data Collection Method Primary Data Secoandary Data Questionnaire design formulation Sample design Limitations of the research IV. COMPANY PROFILE About the Company SWOT Analysis V. VI. DATA ANALYSIS AND INTERPRETATION CONCLUSIONS / FINDINGS 1-2 3-8 3 4 6 7
EXECUTIVE SUMMARY
INTRODUCTION
Earlier people used to search for a new home within Delhi but now things have changed tremendously. People looking for a new home have started focusing on the upcoming NCR area comprising Gurgaon, Noida, Greater Noida, Sonepat, Faridabad and Ghaziabad. There are numerous factors responsible for this change, which have been identified and analyzed during the research and the same has been indicated later in the report. OBJECTIVES To find out the reasons for transition of people from Delhi to National Capital Region (NCR). To find out the perception of people about the cities included in NCR namely Gurgaon, Noida, Greater Noida, Sonepat, Faridabad and Ghaziabad. To know the degree of importance of various factors which people consider while purchasing a house.
STEPS
Understanding the objectives and requirements of the project clearly. Prepared a questionnaire keeping in mind the objectives to be achieved. Accordingly three questionnaires were made: Housing Society Builders Searched for busy commercial places, occupied housing complexes and underconstruction housing complexes located in Gurgaon, Noida, Greater Noida, Sonepat, Faridabad and Ghaziabad. Obtained Permission to conduct surveys in shopping malls and housing complexes.
Conducted survey with the help of a questionnaire in shopping malls and occupied housing complexes and carried out in depth interviews of the sales manager of under construction housing complexes in different cities of NCR Analyzed the data collected, through tables and charts in MS Excel software.
INTRODUCTION
ABOUT THE INDUSTRY
The term real estate is defined as land, including the air above it and the group below it, and any building or structure on it is also referred to as realty. It covers residential housing, commercial offices, and trading spaces such as theater, hotels, and restaurant retail outlets, industrial buildings such as factories and government buildings. Real estate involves the purchase, sale and development of land, residential and nonresidential buildings. The main players in the real estate market are the landlords, developers, builders, real estate agents, tenants, buyers etc. The activities of the real estate sector encompass the housing and construction sectors also. The real estate sector in India has assumed growing importance with the liberalization of the economy. The consequent increase in business opportunities and migration of the labor force has, in turn, increased the demand for commercial and housing space, especially rental housing. Developments in the real estate sector are being influenced by the developments in the retail, hospitality and entertainment (e.g.: Hotels, resorts, cinema theater) industries, economies services and information technology (IT) enabled services etc. The real estate sector is a major employment driver, being the second largest employer next only to agriculture. This is because of the chain of backward and forward linkage that the sector has with the other sectors of economy, especially with the housing, construction and commercial sector. About 250 ancillary industries such as cement, steel, brick, timber, building material etc are dependent on the real estate industry.
Estimated suggest that the urban housing sector would require investments to the tune of $25 billion (Rs 1.10 lakh crore) over the next five years. Prices have remained buoyant as new construction lags. According to surveys there is a shortage of 19.4 million units (12.7 million units in rural areas and 6.7 million units in urban areas) in the country about three years ago, which will require real estate in India. Real estate in India will trigger economic growth infrastructure development and enabling government policies would help trigger growth. Real estate in India will help high economic growth has fuelled the demand for real estate. Cities continue to attract interest from IT and ITES companies that are either establishing a base or are looking to expand which will give rise to real estate developer in India. It is the suburban locations that are witnessing development activity due to easier availability of land construction of large floor plate and offer of built to suit facilities thus helping housing construction company in India. According to one estimate the IT and ITES sector are creating 200,000 jobs per annum which itself will create a demand in commercial space of 15 million square feet. Besides it will generate a huge demand for residential flats. So more need for luxury residential apartments in India.
Real estate in India assumes that 25 % of the work force joining the IT/ITES sector required independent housing there would be demand for 50 million sq ft of residential accommodation every year to meet the need of the workforce joining the IT/ITES sector alone. The demand has been aided by the ease in documentation and formality of property registration in India. It leads to boost property developer in India. The Indian realty sector would see unchanged interest from N R Is aided by the relaxation in FDI norms in real estate. The government has also helped by permitting banks to advance home loans to N R Is. The report acknowledges that the government had also played a pivotal role in the development of this sector .It had aided the sector by giving income tax benefits to consumer and benefits to developers. It initiated the rationalization of stamp duty and repealed the Urban Land Ceiling Act in 9 states. A number of state governments are moving towards computerization of land records.
Real estate in India has a bright future .The report also pointed out certain issues, which need to be addressed by the government to ensure rapid growth. Some of the issues are absence of large listed companies in these sectors, which has affected fund flow.
Foreign still cannot buy or sell undeveloped land, and reassessment of the legal aspect to stamp duty and rent control. At last, changing demographics, low interest rate regime, rising disposable income, and fiscal incentives have provided huge demand for housing. Further nuclearization of Indian families has accelerate the demand for mortgages and for fresh housing thus give rise to more real estate developer in India.
The Indian version of REIT-REIS (Real estate investment scheme) would enable investment by small investors in the real estate sector and thus earn dividends on the rental income being paid. The fiscal incentives introduce by government introduce 3 years ago have unleashed the market forces. The credit of housing has gone up and interest rates have come down to 8-9% average.
city. Chennai is another option you can explore for residential and industrial property investment. Eastern India is still learning the ropes as far as development is concerned. Barring Kolkata, most of this Indian region has largely remained bereft of too much development. However, with industrial majors, like Posco setting up their steel plant at Bhubaneswar, things are looking up in the poor state of Orissa. If you are looking to reap long-term real estate rewards, then East India is definitely a good investment opportunity.
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RESEARCH METHODOLOGY
PRIMARY METHOD
Face to Face interview Questionnaires Telephonic Survey Survey through E-Mail Survey through Reference
SECONDARY METHOD
Magazines on Property Internet sites on Property Internet websites of popular property developers of India
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SAMPLE DESIGN
Stratified method of sampling was used for face-to-face survey while snowball sampling method was used while conducting telephonic survey.
SAMPLE SIZE
People living in Gurgaon Housing and Society Complexes, in Noida housing complexes and in Sonepat Housing (Kundli) complexes were surveyed. Total Number of people surveyed was: Gurgaon Housing Complex Gurgaon Society Complex Noida Housing Complex Sonepat Housing Complex ----------------200 40 56 150 -----446 -----Sales Manager of 25 under-construction Housing Complexes were also surveyed to know the degree of importance of various factors that people consider while purchasing property, from developers viewpoint.
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COMPANY PROFILE
REAL ESTATE giant DLF Universal Ltd is going to match Mukesh Ambani's Reliance Industries Ltd in setting up a 20,000-acre multiproduct Special Economic Zone (SEZ) in Gurgaon. According to Haryana State Industrial Infrastructure Development Corporation (HSIIDC) the private developer has offered the
corporation a joint venture for the SEZ. But the project will have to be first approved by the Haryana Industrial Promotion Board (HIPB). The proposed project, which has already received an "in-principle approval" of the Central government, is proposed to be set up on both sides of (Gurgaon-Jaipur) National Highway 8, bisecting the proposed Kundli Manesar Palwal (KMP) Expressway. In fact, the proposed DLF SEZ will look on to the 25,000-acre Reliance-HSIIDC joint venture SEZ likely to come up in Gurgaon and Jhajjar districts. The proposed DLF SEZ will be developed in four phases. The first phase of 500 acres is expected to be completed by 2009 and the final phase by 2018. The company expects the SEZ to attract an investment of Rs 1,24,000 crore in terms of fixed as sets like industrial, commercial and residential stock. The annual export potential of the project has been pegged at $10-12 billion once it is fully operational. The SEZ project will be developed through a special purpose vehicle (SPV) promoted by DLF. The company has identified land on both sides of NH 8 for the project, and has offered to keep any part of the land acquired by the state government for public purpose out of the SEZ project. The project report submitted by DLF visualises 5,000-6,000 acres of the total project area being developed for
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industrial use in two parts - large industrial zone and small industrial zone. The large industrial zone will be developed with plots of 10, 25 and 50 acres, while the small industrial zone will be developed with plots of one, two and five acres. The company also proposes to demarcate a "free trade zone" within the processing area of the SEZ, which would lay emphasis on trading of goods and commodities manufactured within the SEZ, their packaging/ repackaging/ exhibition and the service sector, including BPOs, IT and ITES companies. The private developer will reserve about 2,000 acres for a commercial zone that will include shops and other establishments such as hotels, office complexes and banks. DLF will also develop about 20 million square feet of built-up infrastructure, which would include business centres, logistics park, warehouses and hotels. Almost 10,000 acres will be developed solely as residential zone, providing all categories of houses for people working in the SEZ. DLF will also develop about 2,000 to 3,000 acres as institutional area, providing educational, healthcare and research infrastructure. The private developer will provide connectivity to the 20,000acre SEZ by creating an arterial road connecting NH 8 and the proposed Kundli-Manesar-Palwal Expressway during the first phase of development. DLF also proposes to set up a gas-based captive power plant of 2,000 MW capacity at a cost of Rs 6,000 crore. According to tentative company estimates, the land cost for the project will work out to Rs 10,000 crore. The development cost has been estimated at Rs 6,142 crore, the cost for readily built infrastructure at Rs 2,625 and the cost of project management at Rs 938 crore. LOCATION Both sides of Gurgaon-Jaipur highway (NH 8) COST Project cost for DLF to be Rs 26,000 cr Expected domestic and foreign investment Rs 1,24,000 cr STATUS Has received an in-principle approval from the Centre.
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OTHER PROJECTS OF DLF IN HARYANA DLF CYBER CITY The Cybercity project is prestigious venture, which aims to provide the world-class office and recreational space to the reputed organisations. "DLF Cybercity", spread over 125 acres of land on the Northern Edge of DLF City. It is located at the intersection of NH-8 and the Sector Road that leads to the DLF Golf and Country Club ranked as 7th largest Golf Club in Asia Cybercity will offer over 15 million sq.ft. of modern workspace to leading corporate houses; software majors and IT enabled service companies who seek International grade infrastructure. This project besides the regular feature will also include facilities like hotels, convention centres and multi-cuisine foodcourt. DLF CITY GURGAON DLF Cybercity DLF Building No. 8- Cyber City DLF Building No. 9A & 9B Cyber City DLF Cyber Greens DLF Ericsson Forum DLF Infinity Towers DLF Square DLF Nestle House DLF Gateway DLF Atria DLF Centre Court DLF Plaza Tower DLF IBM Tower DLF Corporate
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RESEARCH ANALYSIS
A couple of weeks ago, the Canadian research firm claimed DLF BSE -0.67 % is "a crumbling edifice." But this time, its analysis hasn't got the media and sector experts gasping. Most have shrugged off the claim that DLF shares are worth Rs 100 a piece as an exaggeration. DLF is facing scrutiny from both Sebi and the Ministry of Corporate Affairs. There is a larger question at play though. he Veritas report claims DLF's over exposure to Gurgaon is a risk, especially as that market is speculative. But others also have land banks concentrated in one or two cities. The only exception: Unitech. Companies focus on specific areas and develop expertise in that particular market. During the economic boom of 2006-7, major realty companies did try to diversify. But after the slowdown, most went back to their core markets where they could maximise profit," says Anshuman Magazine, chairman and MD, CB Richard Ellis, South Asia . Its net profits were down 45 per cent in the third quarter of this year when compared to the same period last year - in fact, the company has not posted an increase in quarterly profits in just under two years. Sales growth has also fallen over the last four quarters. Yet, the most dramatic number that DLF has posted to date is its debt: A staggering Rs 22,758 crore (Rs 227.58 billion) as of end of December 2011. Although DLF's high debt level has been seen a cause of concern for industry watchers, the DLF group CFO argues that if you are an asset-heavy company, it often results in being a debt-heavy company. Rising debt translates into higher interest outgo. An analysis of the last financial year's performance shows that DLF's operating cash flows were Rs 2,492 crore, and the interest outgo was Rs 3,013 crore, which means that interest payments added up to Rs 521 crore more than the cash generated from operations. In addition, the company spent money to acquire land and on capital expenditure, which increased overall debt. Consolidated Financial Results
(Rs. in Crores) 2011-12 Gross Operating Profit Less: Finance Charges Less: Depreciation Profit before Tax Less: Provision for Tax Profit before minority interest Share of Profit/(loss) in associates Minority interest Profit after exceptional items, tax, minority interest and before prior period items 4,498.79 2,246.48 688.83 1,563.48 369.35 1,178.15 (1.50) 33.64 1,210.29 2010-11 4,336.54 1,705.62 630.72 2,000.20 459.41 1,540.79 8.83 (7.24) 1,542.38
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(9.47) 1,200.82
97.23 1,639.61
Company recorded consolidated revenues of Rs. 10,224 Crores in FY''12 as compared to Rs. 10,144 Crores in FY''11, an increase of 1%. The gross operating profit, on consolidated basis, improved to Rs. 4,498.79 Crores from Rs. 4,336.54 Crores, an increase of 4%. The profit after tax, minority interest and prior period items was Rs. 1,200.82 Crores as compared to Rs. 1,639.61 Crores for the previous year, a decline of 27%. The Company's profits were adversely impacted due to higher input cost with higher constructions costs due to continuing high inflation.
Disinvestment guidance maintained As on 31st Dec 2011, the gross debt for DLF stood at Rs. 24086 Crs v/s Rs. 24,690 Crs in Q2FY12 and the company maintains its target of disinvesting Rs. 6,000 Rs. 7,000 crore of non-core assets in the next 2 3 years to repay significant amount of debt. Management continues to maintain its target of bringing down the debt to Rs 19500 -19000 Crs by the end of current fiscal. We believe, if the company manages to achieve its target of sale on non-core assets to repayment of debt the debt/equity ratio is expected to reduce to 0.8x and 0.7x for FY12E and FY13E respectively.
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Five reasons why Dlf decided to break up with IPL : 1. DLF has established itself as a national brand - In 2007 when DLF came up with its Ipo its major presence was in North India only so at that time DLF needed a platform that will help Dlf to establish itself as the biggest brand in country's Real Estate sector and Ipl Is the perfect platform which has a nationwide presence. Now after 5 years DLF has successfully established itself as the biggest brand in country's real estate sector .
2. Financial problems with DLF - At the time of Dlf ipo in 2007 real
estate sector was at boom and DLF was darling stock of stock market but from past 2-3 years DLF is under serious financial problems. The share price of DLF Ltd is hovering at the all time low level due to the disappointing financial results of the company quarter after quarter. During this financial troublesome environment, Dlf can't afford to pay Rs 50 crores only for the title sponsorship of Ipl.
4. Decrease in the fever of IPL - IPL was started with a bang but during
its five year journey the craze for IPL has decreased among the people
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also many serious controversies has built up around which has turned IPL into a controversial event. Many Advertisers are moving away from IPL as the ratings of IPL is going down thats why DLF decided to move away from IPL.
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ADVERTISEMENTS
Its an old belief that advertisement can sell literally anything. In order to ascertain whether its true for property or not, it was also included as a first pull factor in the questionnaire.
LOCATION
This deals with property and connectivity to road links, airports, railway stations and bus stops. The more approachable the property is to the public transport terminal, the more value it holds. Proximity to the Central Business District also plays an important role in this aspect.
AFFORDABILITY
Budget plays an important role in short listing the options available in the market. Its only when the budget is decided, one starts looking for the available options in the price range decided.
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PARAMETERS WERE
1. Location - This parameter includes all the locational factors such as proximity to central business district, to schools, to hospitals, existence of huge shopping malls, etc. 2. Business Hub This parameters helps in analyzing the perception that people have about the job opportunities and business prospects available in different cities included in NCR. 3. Quality of Living This parameter helps in analyzing what people think about the style of living prevalent in the 5 cities included in NCR. 4. Law and Order This parameter helps in analyzing what people about the safety and security situation prevalent in the 5 cities chosen for the survey. 5. Infrastructual Development This parameter helps in analyzing how respondents rate 5 different cities chosen for the survey, on the basis of conditions of road and highways, availability of public transport, etc. 6. In order to achieve the third objective of knowing the degree of importance of various factors, which people consider while purchasing the property, two questions were included in the questionnaire. One to find the degree of importance of external factors and another to find the degree of importance of in-locality factors.
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6. Rate of Interest 7. Resale Value 8. Clear title of property 9. Proximity to School 10. Proximity to Hospitals 11. Proximity to Entertainment Centers
IN LOCALITY FACTORS
1. Peaceful Locality 2. Pollution Free environment 3. Population/occupancy 4. Quality of Construction 5. Maintenance 6. Suitability of Home Type 7. Utilization of space 8. Water Availability 9. Power Backup 10. Safety-Security 11. Recreational facilities/Sports Complex 12. Car Parking facility, 13. Club Membership
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MISSION
Our Mission is to bring quality Residential & Conforming to international level of construction quality nad architecture standards, our township offer a lifestyle full of panache, elegance and comfort. We are committed to achieving excellence in Real Estate Development, for the benefit of the nation and our beloved countrymen.
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OTHER DEVELOPERS
Buildings surveyed Building: Project Completion: Estimated Date of Possession: Total No. of Flats Sold Out Vacant Price Range User: USP: Building: Project Completion: Estimated date of possession: Total No. of flats Sold out Vacant Price Range User: Investor: USP: (Sample Size: 25) Parsvnath Estate (Greater Noida) 100 % Ready 264 264 0 1400 per Square feet 100 % Location and Amenities provided Parsvnath Green Ville (Sohna rd, Gurgaon) 85 % Dec 06 500 99 % 1% 50 Lacs to 2 Crores 70 % 30 % Affordability
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Building: Parsvnath Majestic (Indirapuram) Project Completion: 100 % Estimated date of possession: Ready Total No. of flats : 340 Sold out: 340 Vacant: 0 Price Range: 1500 per square feet User: 95 % Investor: 5 % USP: Location Building: Parsvnath Prestige (Noida) Project Completion: 90 % Estimated date of possession: June ` 06 Total No. of flats: 472 Sold out: 95 % Vacant: 5 % Price Range: 2000 per square feet User: more than 95 % Investor: less than 5 % USP: Centrally Located
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Building: Parsvnath Edens (Noida) Project Completion: 75 % Estimated date of possession: March 06 Total No. of flats: 644 Sold out: 95 % Vacant: 5 % Price Range: 2800-3200 per square feet User: 90 % Investor: 10 % USP: Very Well Located
Building: Parsvnath Platinum (Noida) Project Completion: Low rise 100 % Tower 40% Estimated date of possession: Low rise - ready Tower By March `06 Total No. of flats: 400 Low rise 200 - Tower Sold out: Low rise 100 % Tower 90 % Vacant: Tower 10 % Price Range: 1800 per square feet User: 90 % Investor: 10 % USP: World-class facilities provided Building: Eldeco Mansionz (Gurgaon) Project Completion: 90 % Estimated date of possession: Oct 05 Total No. of Villas: 141 Sold out: 134 Vacant: 7 Price Range: 1 Crore User: 100 % USP: Quality of Construction and Design
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Landmark Group Landmark is a group that has set its mark in its category by its impressive portfolio. As a company with a perfectionist attitude, they boast of delivering the best of lifestyle complexes and structures. The group came into being through the vision of highly motivated professionals. Keeping to their commitment of deadlines, they deliver on their promises. "Creating works of magnificence that last"at Landmark that is the essential requirement, an approach reflected in the flawless execution of our projects. Our structures meet the highest criteria of strength, executed with an eye on time and budget at all times.
Taneja Developers (TDI) An ISO 9001 Company, since its inception more than 2 decades ago. TDI has carved a niche for itself in the burgeoning field of real estate development and construction. For over two decades, the company has consistently set quality benchmarks in property development by creating world-class townships and commercial space, in prime locations.
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WEAKNESS
Lack of rural market penetatrtion Dominance mainly at higher level only
OPPORTUNITY
Rise of Indian middle class and small cities A booming real-estate industry economy Rising life styles
THREATS
Many players fighting for the same cake Entry of new players
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DATA ANALYSIS
Three tables and charts have been prepared for each of the three cities namely Gurgaon, Noida and Ghaziabad to analyze what respondents from each of these cities think about five cities included in NCR namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad on the basis of five parameters namely Location, Business Opportunity, Law and Order, Style of Living and Infrastructural Development and also to know the reasons for which they bought the property.
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FINANCIAL HIGHLIGHTS
Particulars
2008
2007
2006
2005
2004
Revenue
4487.008
2439.353
1227.467
553.835
540.47
217.635
100.282
50
22.027
14.519
129.314
63.597
31.03
14.927
7.019
Net Worth
848.835
419.309
135.217
69.129
53.194
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REVENUE
5000 4500 4000 3500 3000 2500 2000 1500 1000 553.835 500 0 2008 2007 2006 2005 2004 540.47 1227.467 2439.353 4487.008
35
150
100
100.282
50
50 22.027 14.519
100 80 63.597 60 40
2005
2004
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NET WORTH
900 800 700 600 500 419.309 400 300 200 100 0 2008 2007 2006 2005 2004 135.217 69.129 53.194 848.835
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GURGAON
PERCEPTION OF PEOPLE ABOUT THE CITIES OF NCR Business Location Gurgaon 202 Noida 34 Greater Noida 1 Faridabad 2 Ghaziabad 1 Opportunity 180 36 12 10 2 Quality of living 210 19 8 1 1 Law and Order 184 25 17 1 4 Infrastructural Development 106 63 65 2 5
200
1 50 No. of People 1 00
50
Parameters
FINDINGS:
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1. Gurgaon buildings stand tall in each and every parameter. Gurgaon tops in all the parameters among Gurgaon respondents. 2. Though in case of Infrastructural Development Greater Noida and Noida are also ranked well by the Gurgaon residents. Probably the credit goes to DND flyover. 3. Location wise, people of Gurgaon feel only Gurgaon and Noida are good in the entire NCR as Greater Noida, Faridabad and Ghaziabad could fetch only 1, 2 and 1 favourable response out of total 240 responses.
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Brand name 46
Advertisements 10
Location 140
Affordability 72
52%
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FINDINGS:
1. The basic reason for people buying property in Gurgaon in mass scale is its locational advantage. It shares border with the Capital of India. Moreover huge employment generating BPO companies are located in Gurgaon. Many Reputed schools and colleges have also come up in Gurgaon. Some of Indias biggest shopping malls having shops of international brands as well as famous national brands are also situated here. 2. Second major factor which attracted people to buy property in Gurgaon was affordability. Developers realizing that most of the people shifting to Gurgaon will be from middle class society they constructed big towers with numerous reasonable flats. Since the price of the property kept by the developers suited the pockets of buyers they were able to buy it without any financial problem. 3. Third major factor was brand name. According to 17 % of the total respondents brand 23 name was the prime reason for which they bought the property. In Gurgaon Housing Complexes have been constructed by popular and leading property developers of India like Omaxe, DLF, Ansals, Unitech Etc. 4. Only 4 % of the total respondents feel that it was advertisements which made them buy the property. Advertisements can actually put the name of the property in the mind of the buyer but no one actually buys the property only on the basis of advertisements. Thus it will be wrong to say that advertisements are useless since they do help in selling though not directly.
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Reasons More space No. Of people Reasons No. Of people 46 Lack of facilities 18
Reasons
FINDINGS:
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1. Among various reasons better location is the most important reason for the people to shift to Gurgaon Housing and Society Complexes. Why location is most important has become apparent till now. 2. Proximity to Workplace and Better Facilities are close second and third most important reasons. Proximity to Workplace may become the most important reason in few years time as industry migration to Gurgaon is happening quickly. All the international brands are preferring Gurgaon over Delhi for their regional office. Moreover people in need of better facilities like water availability, Power Backup, Safety and security, etc also prefer to shift to Gurgaon as Housing complexes of Gurgaon provide all these facilities. 3. Need for more space, Need for Healthy Environment, Need for Own House and Increase in Living Status can be considered as other major factors for people shifting to Gurgaon Housing Complexes. 4. People also purchased property in Gurgaon for investment purpose. This reason may not be seen in such a large number in any other city of NCR. Its so because people consider investment in property in Gurgaon as a very safe bet and expect high return on Investment.
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NOIDA
PERCEPTION OF PEOPLE ABOUT THE CITIES Business Opportunity 13 32 2 9 0 Quality of living 22 32 2 0 0 Law and Order 22 27 7 0 0 Infrastuctural Development 6 9 41 0 0
50
40
30
20
10
Parameters
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FINDINGS:
1. In Location, Noida is a clear winner with 54 out of 56 respondents choosing it as the best location in the entire NCR. That is a huge percentage around 96%. This shows that Noida people are happy with its Location. Noida is located close to the Capital of India and is also very closely located to Indirapuram, another upcoming city. 2. In all parameters other than location, Gurgaon has also been ranked as no.1 by many people. 3. One significant thing in this chart is that Faridabad was selected by many Noida respondents as no.1 in case of business opportunities available. 4. The most significant thing indicated by the chart is that people of Noida have chosen Greater Noida as no.1 in Infrastructural Development.41 out of 56 respondents have favourably marked for greater Noida while only 9 have marked for Noida.
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FIRST PULL TO CHOOSE THE HOUSING COMPLEX Brand name 1 Advertisements 0 Location 40 Affordability 31
Brand name
43%
Advertisements Location
56%
Affordability
46
FINDINGS:
1. In Noida just like in Gurgaon, location is the most important factor that pulls the people to buy a new home. 2. Advertisements have no role in the sale of homes but as said before in the report advertisements do add the advertised property as an option in the mind of the prospective buyer. 3. According to respondents from Noida Brand name of the developer didnt play a big role in making them buy the property. Its probably because Noida doesnt have highly popular brands like Ansals, OMAXE, Eros, DLF, etc. 4. Affordability is another major reason for the buying the property in Noida. As there is hardly any popular developer in Noida and the homes provided in Noida are not as luxurious as that in Gurgaon, the prices are very low as compared to the prices prevailing in Gurgaon. In Gurgaon Higher class and Upper middle class people also buy homes in large numbers whereas in Noida the number of high class and upper middle class people looking for new home is very less.
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Major reasons for shifting Reasons More Space Better Better Healthy Better Better Healthy Reasons More Space Location Location facilities facilities environment environment No. Of 31 28 35 11 No. Of people 31 28 35 11 Reasons Lack of Proximity to Job transfer Own house people Lack of workplace Proximity to Reasons facilities Job transfer Own house No. Of 5 2 0 31 facilities workplace No. Of people 5 2 0 31 people Quality Increase inin Quality Increase constructio construction living status living status 13 9n 13 Investment Investment 1 1 9 Others Others 3 3
Number of people
Reasons
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FINDINGS:
1. One of the most important thing found out in the survey was that the one of the major reasons to buy the house was the desire of people to have their own house. This reason was not at all important in case of Gurgaon. This goes on to show that houses in Noida are very reasonable. Mostly people earlier living in rent have bought properties in Noida either to avoid high rents prevailing in Delhi or due to the desire of having an own asset. 2. Need for better facilities was tick marked by maximum number of people as a reason for buying the property. This again proves the fact that people buying property in Noida are generally from middle class who earlier used to live in less popular colonies of Delhi which are deprived of essential facilities like water, power and safety. 3. Another major reason for buying the property in Noida is Need for more space. Generally people earlier living in joint families or newly married couples prefer buying property in Noida as they are affordable. 4. Only 1 out of 56 respondents have said that investment was the main reason to buy the property, which is around 2 % of the total respondents. This goes on to show that people dont generally buy property in Noida for investment purpose. 5. Another important point to notice is that in Noida proximity to workplace reason is insignificant. Its probably because virtually non-existence of BPO companies in Noida.
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SONEPAT(KUNDLI)
PERCEPTION OF PEOPLE ABOUT THE CITIES OF NCR Business Opportunity 28 75 6 17 24 Quality of Living 59 74 9 2 6 Law & order 60 64 12 5 9
Infrastructure 40 49 48 0 13
FINDINGS:
1. Kundli is only 6kms far from metro 2. 80% of green area and elite unique luxury features beautifully landscape by the top architect. 3. Located on 30metres wide road.
4. This is fully integrated city with schools, medical facilities, gardens, clubs, organized retail with total security and maintenance. . 5. In Infrastructure it enjoys good reputation.
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Brand Name 14
Advertisements 11
Location 85
Affordability 92
5%
46%
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More Space 49
Better Location 71
l p f o r e b m u N
20 10 0
y t i a u Q
y h t l a e H t m o r i v n e
t . x o r P w e c a l p k r o
c a p s e r o m
u a t s
g v l i s a e r c n I
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s e t l i f o k c a L
Reasons
n i a c o L r t e B
s l i c a F r t e B
i u r t s n o c
e f s n a r t b o J
e s u o h n w O
m t s e v n I
s r e h t O
Sales managers were asked to rank the above mentioned factors on the scale of 1-10 (where 1 stands for the most important factor and 10 stands for the least important factor). After collecting the data, it was put in the excel sheet and then average for each of the factors was calculated. In the above Bar chart averages have been shown. Factor with the least average is the most important factor according to the developers that people consider while purchasing the property.
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FINDINGS:
1. It is clear from the above bar chart that Location is the most important factor which people consider while purchasing the property. 2. After location, quality of construction and safety are second and third most important factors respectively. 3. Healthy environment, Water availability, Maintenance, Power Backup and club membership fall in the middle category with average ranking ranging between 3.5-7. 4. Car Parking and Sports complex are least important factors and according to developers, people dont consider them much while choosing a property.
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CONCLUSION/ FINDINGS
The major external factors which people consider while purchasing the property are Price, Availability of loan and Proximity to workplace. The major In-Locality factors which people consider while purchasing the property are Quality of construction, Availability of water and Pollution-free environment Perception of people about different cities of NCR 1. Location wise Gurgaon and Noida are adjudged the best by the respondents 2. Business opportunity wise Gurgaon due to the mass presence of BPO company and offices of MNCs and Noida due to its proximity to Delhi are consider good by the majority of respondents. 3. 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. 4. In Law and Order all the places are bad as per the respondents but out of the five Gurgaon is the best. 5. As far as infrastructural development is concerned Greater Noida enjoys good reputation among the respondents of all the three cities. 6. In totality, both Location as well as Affordability together account for more than 95 % of the total responses. 7. In Gurgaon major reasons other than affordability and location, to purchase the property were proximity to workplace and healthy environment. 8. In Sonepat and Ghaziabad other major reasons were almost the same -desire to own an own house as well as need for better facilit
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RECOMMENDATIONS
As DLF enjoys good brand name and have a battalion of brand loyal customers it shall make sure that the maintenance of its occupied housing complexes is taking place in the best possible manner. Due to stiff competition in the market DLF shall focus on the Quality of homes provided and shall also try its best to meet different kind of requirement of different buyers. Due to the current oversupply situation in the market DLF shall resist from increasing price of its property. DLF shall 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. DLF shall 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. DLF should not make false promises to its customers. They should inform properly time of possesion to their respondents. Gurgaon, Noida and Greater Noida are the places where DLF shall come up with new projects as they have been marked favourably by the all respondents. Respondents do not have good image of Sonepat ( kundli), yet they have to work hard. Advertisement for selling property in Gurgaon can be Why drive for 45 minutes to your workplace everyday, take a flat in Gurgaon today. As proximity to workplace is the major reason for people buying flats in Gurgaon. Whereas for Noida and Greater Noida advertisement can be like Fed up of paying rent. Now realize your dream of having a house of your own-COME TO NOIDA as desire of having an own house is the most important reason for the people buying property in Noida.
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ANNEXURS
QUESTIONNAIRE
Name: _____________________________________ Household income per annum: Below 3 lac 3-5 lac above 8 lac Self - owned property p Rental p p No If rental, have you invested in some other housing complex: p Yes No of cars owned: ______ Type of cars Luxury 1. What factor was the first pull to choose this housing complex? Brand name of developer p Attractive and frequent advertisements Location affordability 2. To what extent do the following factors influence your choice of a housing complex? Not at All Very large extent Price Range 1 2 3 4 5 1 Connectivity to public transport 1 Proximity to Workplace Availability of loan Easy flexible Payment plan Rate of interest Resale value 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5 2 3 4 5 5-8 lac
p Low Segment
p Mid
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Clear title of property Proximity to school Proximity to hospitals Proximity to Entertainment centers
1 1 1 1
2 2 2 2
3 3 3 3
4 4 4 4
5 5 5 5
3. To what extent do the following in locality factors influence your choice of a housing Complex? Peaceful locality Not at All 1 1 Pollution free Environment 1 Population/Occupancy Quality of Construction Maintenance Suitability of home Type Utilization of space Water availability Power backup Safety-Security Recreational/sports Complex Car parking Club membership 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 2 3 4 5 2 2 3 3 Very large Extent 4 5 4 5
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4. Your previous residence was a: (mention if rental p Yes Developer housing complex (Unhitch, DLF etc.) Society flat (DDA. SFS etc)
p No )
5. Specify the previous residence mentioned above: ________________________ 6. What were the reasons to shift from previous residence: Need for more spaces Need for better location Need for better facilities Need for healthy environment Increase in living status Want for Quality construction Lack of water and power (in previous locality) Lack of recreation (Clubs, cinemas, sports complex) 7. Are you planning to sell current property (move out in case of rental): p Yes p No p Rental
9. What type of property are you shifting into: Developer housing complex (Unitech, Dlf etc.) Independent house Society flat (DDA, SFS etc.) Others 10. When are you planning to shift: 0-3 months 3-6 months 6-12 months More than 1 year 11. When are you planning to shift:
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Gurgaon Noida Sonepat Ghaziabad Faridabad Delhi Others 12. Which of the following are the reasons for shifting residence: Need for more spaces Need for better facilities Want for appealing construction Lack of recreation Others: ____________________ 13. Rank the cities on the following parameters from 1-5 Gurgaon Noida Greater Noida Location Business Hub Law and Order Infrastructural Development 14. If you sell this property what will be the expected return: Loss p Low returns p Medium returns p High returns: _____________________________________________________________________ All information will be kept confidential. The above date collected is for the purpose of market study only Place ___________________________ __________________ Developers: ______________________ Price. ____________________________ Housing complex: p p p p p p p p p p p p p p Faridabad p p p p p Ghaziabad p p p p p p Need for better location p Need for healthy environment p Increase in status of living p Lack of water and power
Quality of Living p
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Household income per annum: Below 3 lac 3-5 lac Above8 lac Self - owned property p Rental p p No If rental, have you invested in some other housing complex: p Yes No of cars owned: ______ Type of cars Luxury 5-8 lac
p Low Segment
p Mid
15. To what extent do the following factors influence your choice of a Society? Brand name of developer Attractive and frequent advertisements Location affordability Not at All 1 1 Connectivity to public transport 1 Proximity to workplace Availability of loan Easy flexible Payment plan 1 1 1 Rate of interest 1 Resale value 1 Clear title of property 1 2 3 4 5 2 3 4 5 2 3 4 5 2 2 2 3 3 3 4 4 4 5 5 5 2 3 4 5 Very large extent 4 5 4 5
Price Range
2 2
3 3
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16. Rate the following in locality factors in a society: Peaceful locality Very poor 1 1 Population/Occupancy 1 Quality of Construction 2 3 4 5 Poor 2 2 Fair 3 3 Good 4 4 Excellent 5 5
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INTERNET LINKS
www.dlfgroup.net www.propertycafeteria.com www.zameen-zaidad.com www.onlineghar.com www.hotgurgoan.com Economictimes.indiatimes.com www.parsvnath.com www.ashianahousing.com www.gurgaonproperties.net www.estatedeveloper.com
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