CHAPTER-1

INTRODUCTION
Real Estate ore Immovable Property is a Legal Term(in Some Jurisdictions)that Encompasses land Along
With Anything Permanently Affixed To The Land,Such as Buildings.It Often Considered Synonymous
With Real Property(also Called As Reality)in contrast With Personal Property(also Called as
Personality).However,in Technical Terms refers to the land and fixtures themselves and real property are
used primarly in over real estate.The term real estate and real property are used primarily in common
law,while civil law jurisdiction refers instead to immovable property.In Law,the word Real Means
Relating to a Thing as Distinguished from a person.Thus the law Broadly Distinguishes between real
property(land and anything affixed to it)and personal property(everthing else e.g.clothing
furniture,money).

REAL BUSINESS INCLUDES:With the development of Private Property ownership,real estate has
become a major area of Business.Purchasing real Estate Requires a significant investment and each parcel
of land has unique characteristics,so real estate industry has evolved into several distinct fields.some kind
of real estate businesses include,
Appraisal – Professional Valuation Services
Brokerage –Assisting Buyers and Sellers in Transactions
Development -Improving Land For use by adding or replacing Buildings
Propety Management –Managing a Property for its owner(s)
Real Estate Marketing –Managing The Sale Side of the Property Business
Relocation Services –Relocating people or business to difficult country

TYPES OF OWNERSHIP INTERESTS: Real property(immovable property)can refer to the real estate
itself or to various type of ownership interests in real estate,including:
FREEHOLD:Provides the owner the right to use the real estate for any lawful purpose and when and
whom to the owner wishes
LIFE ESTATE:An interests in real Estate which is granted to life tenant until that person dies.The
interests teminates upon the death of a life tenant.
ESTATE FOR YEARS:Similar to the life Estate but Terms are Specified to the Number of years
LEASE HOLD:The Right to posses and use Real Estate pursuant to the terms of a use
REVERSION: The Right to posses the free interests in real estate after the expiration of life estate,estate
for years or leasehold.
CONCURRENT or co-TENANCY:The ownership of an interests in real property by more than one
party.Rights of any Single Party may be Limited in various ways depending on the jurisdiction and type
of concurrency
PARTICIPANTS OF REAL ESTATE MARKET:The mainparticipants in rael estate market are
OWNER/USER:These People are both owners and tenants.They Purshase Houses or commercial property
as an investment and also to live in or utilize as a Business
OWNER:These people are pure investors.They do not consume but rent out or lease the property to
someone else.
RENTER: These people are pure concumers
DEVELOPERS:These people prepare raw land for building which results in new market or product
RENOVATORS:These people supplt refurbished buildings to the market
FACILITATORS:This includes banks,real estate,real estate grocers,lawyers and others that facilitate the
purchase and sale of real estate

The owner/user,owner and renter compromise the demand size of the market,while the renovators and
developers constitute the supplt side.In order to the apply the simple demand and supply analysis to the
real estate market and number of modifications nedd to be made to be standard micro economic
assumptions and procedures

REAL ESTATE CAN BE DIVIDED INTO THREE CATEGORIES:

Commercial
Residential
Agricultural
We can invest inti al, real given areas and makr return by Capital appreciation,Rental income,Agriculture
Produce,lease and commercial use
The following Factors influence the price and cost of the real estate
1.The Physical Characteristics of the property
2.The property Rights
3.The time horizon of Holding the Property
4.Geographical Area
5.The Development Rate

FEATURES OF REAL ESTATE MARKETS:In particular the unique features of real estate must be
accomadated.These include
Durablity
Heterogenous
High transaction costs
Long time delays
Both investment good and consumption good
Immoblity

The Revolutionary policy shift in favour of a opened economy by indain government in 1991 brought
tremendous growth to all sectors on the wheel of Indian economy;especially the importance was stressed
on developing infrastructure in the country.The main obstacle for india’s Development was once
attributed to be lack of infrastructure and pathetic policy of negligence by administration in this sectoras
well as housing problems.The situation Changed With The Policy Shift and lot of Attention and
investment were diverted in developing road network,housing,water supply schemes,Administration and
education.
Development Of Road Infrastructure ultimately resulted in developing and connecting small cities and
villages with major cities and influx of man power to major cities as well a s creation and development of
mant sub urban areas in Bangalore,Chennai which includes places like mammandur,chengalpet in
southern end which is 78 kms from Chennai city and on the Bangalore highway the growth gas extended
upto sriperumbudur,Cochin in the state of Kerala.Hyderabad(Calles Cyderabad)Mumbai,Delhi
NCT,Noida ,Ghaziabad,Faridabad,Gurgaon and many places.Develment of these places necessitated
creation of more housing and offices for the corporate houses who mhave plans to settle downin their
cities and a forecast bya well known financial consultant has indicated that the indain estate sector can
grow from current $12 billion to$90 billion by2015 and india is the promising real estate market in asia.
Among The Four Metropolitan Cities in Indai,the port city of Chennai has distinct advantage of major
corridor to southern india and the finest English language pronounciation and vast population of
lierates,Also it has distinct advantage in terms of residentaiol Rental and Capital values.
While Mumbai and delhi are commercially important,their rental and capital values are much higher than
Chennai.Lower operational Cost,Availablity of land and low cost of Accomadation has been the major
attractinf factors for domestic and milti national companies to settle their operations in Chennai.
On the advent of many multinational and corporate houses other than IT and BPO,like
BME,nokia,Hyundai ans St.Gobain settin up the state of the production units,Real edtate in this southern
metropolis is on record Growth and Apartments Which were available at the rate of RS 75 Lakhs per falt
in 2003 has touched Rs1 Crore within the last two years period,despite all the odds of lack of
infrastructure And all the time scarcity in supply of portable water and Electricity.The Tsunami Effect
Brought the prices for a bit lower for some time but again started rocketing up in sea- front areas like
Mylapore and have seen Remarkable increase in Bookings and the cost of aFlat at the Rate of 50lakh and
above depeds upon the facilities offered.

The Government of Tamilnadu brought out the ITes Policy of the government of tamilnadu in 2003 with
their intention to meka Chennai the IT hub of the entire country and going show focus on other industry
segments such as BFSI,health care,education and design and engineering,Already Chennai has a major
Chunk of 15-20% OF THE TOTAL Software Exports in india and noe ITes Sector is on the move and
this would bring further growth on the already heated up real estate market in the city.

CHAPTER – 2
PROFILE OF THE COMPANY
KNB flats(Builders and real estate) was found in april 14​th​ 2000.At the time Firm was ina Covered Ares
of 2000sq.ft in Kunrathur,Chennai

2.1PRESENT POSITION
1.KNB flats with a covered area of 2000 sq.ft is located in 2800 sq.ft campus at poonamalle,24km from
Chennai airport.
2.KNB now sell lands (Chennai & Pondicherry) to all over the world Especilly for NRIs and government
recommended Foreign Parties
3.Investing to other construction industries and
4.more
The present wealth of Experienced and qualified staff includes over 3 civil engineers and more than twice
as technical and supervisory site staff.a considerable number of skilled craftsman are under the regular
employ of the company.Moving from site to site as required,labour contractors connected with the
company for many years provide a reasonably constant supply of unskilled and semi-skilled as and when
required.
The company has reputed in respect of its ability to deploy its skills and resource to complete whatever
project it may under takewith the utmost of its efficiency.Under the supervision of a highly efficient and
experienced management,it is striving even towars greater achievement tht has been attained already.
2.1.1 DEDICATION TO THE CUSTOMER
Creation of value for customer satisfaction is comerstone philosophy ok KNN flats.It does its best to serve
the needs of present and potential customers.It maintains Best service Through Consultation centre for 24
hrs Mobile Maintainence and maintaining Training Center.
2.1.2EMPLOYEE OF KNB
The KNB Flats Today bis the result of Hard Work and sacrifice of its Employees.Through
Deligence,prudence and love KNB flats tries to Help Employeeengender a vision for tomorrow.
2.1.3 QUALITY ASSURANCE
All KNB customers know that by staying with KN flats,That they get benefi t of the latest technology
and impeccable quality in construction.From Raw materials to final finishing at each stage the work is put
into a series of strici quality control and tests.
2.2 FUTURE PLAN
1.Open a new office in city center of Chennai
2.Introducing Professional Web page
3.Partnership With construction industry for government contracts
4.Open a granite showroom and Brick manufacturing Industry and
5.more…

Chapter -3
REVIEW OF LITERATURE
3.1 JOURNAL OF PROSPECTS AND PROBLEMS IN REAL ESTATE IN SAYING
The paper Entitled ” JOURNAL OF PROSPECTS AND PROBLEMS IN REAL ESTATE” is an
attempt to reveal the issues concerned with the real estate sector in india.This paper is concerned with the
investment on real estate in india and the trends in the concerned industry. Real Estate or Immovable
Property is a Legal Term(in Some Jurisdictions)that Encompasses land Along With Anything
Permanently Affixed To The Land,Such as Buildings.It Often Considered Synonymous With Real
Property(also Called As Reality)in contrast With Personal Property(also Called as
Personality).However,in Technical Terms refers to the land and fixtures themselves and real property are
used primarly in over real estate.The term real estate and real property are used primarily in common
law,while civil law jurisdiction refers instead to immovable property.In Law,the word Real Means
Relating to a Thing as Distinguished from a person.Thus the law Broadly Distinguishes between real
property(land and anything affixed to it)and personal property.
The study and Prospects & Problems Real Estate in india and all the factors of the real estate it can be
concluded that the real estate is a very wide coccept and it is highly affected by macro- economic factors
like GDI,FDI,per capital income,interests rate and employment in nation. The Most important Factor in
the case of real estate is location which affects the value and returns from real estate.India Nedds a
Stronger Capital Market Base For Property financing.The Debate on the Potential introduction of REITs
and real estate funds points in the right direction.The introduction of REITs in 2007,will give
internantional investors in particular a familiar investmen vehicle.Private investors could also enter into
indirect investment in real estate.Although interests in new projects is most likely to come primarily from
institutional investors,the rising middle class is likely to seek new instruments aside from direcr property
investments in the medium term.So,in the end we can that the investment in real estate property in india is
a very good investment opportunity. But one should be vert careful in taknig decision in this direction due
to rising inflation and interests rates.Legal issues must be also kept in mind while choosing a property.
3.2 REAL ESTATE GROWTH IN SOUTHERN PORT CITY CHENNAI OF TAMILNADU saying
The Relaxation in FDI rules in Real Estate Development Have Made national and Global Players to Test
The Chennai Chennai Market .The Property Market in Chennai has been buoyant since
2004.Therefore,rental prices are showing a upswing.Certain Sub Urbs Are Under going increased real
estate development activity.Even Builders have entered into joint ventures to promote housing
Apartments.The Apartment Sales Have Increased in Volume,as many Independent houses Have Given
way to Buildings.The second hand market for flats is also catching up.With housing loans being offered at
attractive rates and all above factors,investment in real estate market in Chennai is sure to provide
maximum profit to any investor.
3.3 MARKETING ANALYSIS OF CHENNAI REAL ESTATE saying
Chennai I better to invest today than most other popular cities in india they may change in future,but
investing in Chennai is a good bet remember however,the Indian real estate market is not a mature
market,it is still in a fledgling State,in terms of regulations.The market abroad are much more developed
and structured due to their stringent real estate lawsin places like US and EUROPE,no agent can deal a
property until he or she as a real estate licence.The Indian Market is totally Unstructured inthat sense
anybody can deal in property,ther is no licensing system so beware of those your partner or you work
with.Research them thoroughly and ask them the tough questions.Indai is not transparent and therefore
due diligence is a must.
3.4 DEMAND AND SUPPLY OF REAL ESTATE IN INDIA saying
Chennai real estate is a budding market.chennai being the fourth largest metropolitan city has regional
offices of all major coroporate offices and it is among the trade capital of india.It thus offers tremendous
teal estate infux and it is the hub of some of the top real estate builders and developers in india.chennai
real estate builders follow the best quality at most affordable prices.

CHAPTER -4
RESEARCH METHODOLOGY
3.1 NEED FOR THE SYUDY
The Project entitled “Prospects and Problems Of Real Estate In Chennai” is done for KNB Flats in
Chennai.KNB Flats are well known for construction and real estate industry in Chennai.To develop their
business in real estate industry they want to make a study of the “prospects and Problems of real estate in
Chennai”
The Research study helps them to know about the ,Present Factor of real estate boom,Future constraints
of real estate in Chennai.
3.2 SCOPE OPF STUDY
The study was conducted by a researcher in the areas such as demand and supply analysis,property
transfer process,real estate trends in Chennai,foreign funds and exposure of banking sectors,shortage of
land,investment by government ,commercial boom,price variation,tax process,perception of the cureent
market trend,future constrainrs or real estateinvestment.In the area of marketing and strategy of study was
conducted to find out identify prospects and problems in real estatein Chennai.
3.3 OBJECTIVES OF THE STUDY
The objective framed for the study as follows
1. To study the fundamental factors affecting the real estate value
2. To examine the causes of the present real estate boom
3. To present the future constraints of real estate investment in Chennai

RESEARCH DESIGN
Reserch design refers to the conceptual structure within research would be conducted. A research design
indicates a plan of action to be carried out in connection with a proposed research work.it provides
guidelines for knowing whether the research is moning in thye right direction.it is a procedure for data
collection and analysis.
The research design used for this study is of descriptive type.descriptive research includes survey and fact
findings,enquires of different kinds.The majorpurpose descriptive research is the description of the state
of affairs,as it exits at present.In social science and business research we quite often use the term”Export
poat factors research” for descriptive research studies.

3.5INDEPENDENT VARIABLES
Prices,features of flat,materialused and advertising.
3.6 DEPEDENT VARIABLES
Customer awareness,presence and their perception about property
3.7 SOURCES OF DATA
There are two sources of data viz.,primary and secondary data.primary data are the data which is collected
for the first per analysis purpose.Secondary data are the data which were collected by somewhere anfd
processed,it can be used for analysis.
The data for this studu has been collected form peimary and secondary source;a questiomarrie containing
both close ended and open ended questions was addressed to the consruction executives and owners of
different parts in Chennai.It includes a straight random sample of 29 respondents in the market.
3.8 FRAME WORK OF ANALYSIS
A brief discussion on the various tools and techniques used in the study are given below
The correlation test is done by SPSS-17
Percentage analysis
Correalation Test

3.7 LIMITATIONS OF STUDY

The study has been conducted in a systematic and comprehensive way so as to make the project a
enviable one.However following factors are some of the limitations of the study
a)The time for study war limited,and hence this constraint has contributed certain limitations in this study
b)Some Respondents were hesitated to answer initially and ther war need to convince them for resrondent
to the questionnaire,which maight have contributed some bias
c)Meeting Respondent in the customer place is very difficult because even after giving appointment they
will go for business work
d)This study has been conducted in very small size because survey has taken only in Chennai Nielsen
org-marg
e)The most of the respondents answering the questionarre is low
f)Some of the respondents were answering blindly for two or more answer was very difficult
g)Most of the respondents sat that take more time for service

CHAPTER -5
ANALSIS OF OBJECTIVES
5.1 FUNDAMENTAL FACTOR DETERMINING THE VALUE OF THE REAL ESTATE
These includes
DEMAND ANALYSIS
Demand refers to people’s Willingness and ability to buy or rent a given property.In part demandstems
for a market area base.In most Real Estate the source of buying Power comes from jobs.Property Values
Follow a upward path when employment is increasing.The real estate market in Chennai is following a
remarkable change in past few years.The Rapid Expansion of IT,Especially BPOs,spurt in the middle
class income and 8% growth in GDP are the potential key factors in growth
Chennai is the 3​rd​ largest economy in the country,and has the 2​nd​ highest GDPamong the developing
countries based on purchasing power parity.IT and IT enabled sector in Chennai are still in its growing
phase due to increase in demad for business processing units in india.This could lead to a space
requirement of 20-25 millon sq.ft per annum,according to Merrill Lynch Report.Taking this factor into
conideration the total value of real estate created by the IT and ITes sector in the next three years will be
132000 crores

SUPPLY ANALSIS
Supply analysis means sizing up the competition.Nobody wants to pay more for the property than the
price they can pay for competing the property.An integral part of value analysis requires identifying
sources of potential competition and inventorying them by price and features.An analysis of supply
should not limit potential competitors to geographically and physically similar properties.In some
markets,for example low price single family houses might compete with condominium
units,manufactured homes and even with rental apartments