In today’s dynamic and competitive environment, every business depends on the acceptance of the customers. Customers have numerous choices to make the final decision and they are heavily influencing the companies in regard to the product price, quality and sizes. Among the different marketing communication tools, companies are giving attention to the sales promotion to attract the customers. Therefore, the aim of this research paper is to determine the impact of sales promotion on the consumer home buying behavior.

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1.1 Introduction of Real estate sector
Initially land was used as a tool to hijack a country’s economic independence
and subvert its social processes. Post-independence, Indian real estate sector was
unorganized and disaggregated. Land prices were low because of low demand.FDI
policies were too stringent, defensive and discouraging. Post liberalization, real
estate sector has seen impressive growth owing to the following Multinational
Entrepreneurialism, Buoyant local stock markets, Robust economy, With great
demand for housing and commercial and industrial premises for a booming
economy, it transformed into one of the most lucrative sectors in terms of
investment and employment opportunities.
Today, India is one of the fastest growing economies of the world.
Expected to be the 3rd largest economy by 2025 and the largest economy by
2050. 70% of the future employment opportunities will be created in the cities.
India needs Rs.60000 Crores in the next 20 years to meet its infrastructural needs
of approx. 68 cities that will have above one million populations. Needs Holistic
development with emphasis on construction and real estate sector. This economic
growth has, in turn, stimulated demand for property to help meet the needs of
business, such as modern offices, warehouses, hotels and retail shopping
centres. It has also boosted housing demand as a wealthier populace seeks
upgraded accommodation. Moreover, shrinking household size and improved
access to housing finance have boosted the demand for residential property. Tax
incentives have also been granted to interest and principal paid on home loans,
which has made owner-occupied property more attractive.
More than 60 years after India became a Republic, the country has seen
phenomenal changes. It has gained recognition globally as a major player in the
world economy. This is also reflected in the journey of the Indian real estate
sector, which has emerged as one of the significant contributors to the country's
GDP. Real Estate Sector In terms of GDP contribution, Real Estate sector is
estimated at around Rs.504 billion in 2007-08.The market size of the Indian real
estate sector is estimated to be around Rs. 2,643 billion in 2007-08.The sector
has been growing at a CAGR of 12%. It is constituted of the Residential,
Commercial and real estate activities of Special Economic Zones. Real Estate
Segments Commercial / Retail SEZ 9% 9%, Residential 82%.Ministry of
Commerce and Industry, iMacs analysis Residential At around Rs. 2,171 billion,

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the housing sector is estimated to grow at 12% in the long term. Demand for
housing is estimated to be around 4.8 million houses per year over the Eleventh
Five Year Plan period. In addition to the need for new housing tenements, the
demand is also likely to be fuelled by the housing shortages already prevalent in
several states.
1.2 Meaning of real estate
The Planning Commission of India said that ‘Real estate’ as land, including
the air above it and the ground below it, and any buildings or structures on it. It is
also referred to as realty. It covers residential housing, commercial offices, trading
spaces such as theatres, hotels and restaurants, retail outlets, industrial buildings
such as factories and government buildings. The activities of the real estate sector
encompass the housing and construction sectors also. Real estate business
involves transactions, such as purchase, sale, and development of land,
residential and non-residential buildings. Major players in the real estate market
are the land owners, developers, builders, real estate agents, tenants, buyers
etc.Unlike other investments, real estate is dramatically affected by the condition
of the immediate area where the property is located - hence the well-known real-
estate maxim, "location, location, location." With the exception of a national or
global recession, real estate values are affected primarily by local factors such as
the availability of jobs, crime rates, school quality and property taxes.
1.3 Segments in the Indian real estate sector
Indian real estate sector has five segments they are:-
a) Residential space:
A residential area is a land use in which housing predominates, as opposed to
industrial and commercial areas. Housing may vary significantly between, and
through, residential areas. These include single-family housing, multi-family
residential, or mobile homes. There is an acute shortage in residential housing-
REAL ESTATE SECTOR
Residential
space
Commercial
space
Retail space
Hospitality
space
SEZ space

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projects in India. It is expected that housing shortage in rural areas will witness a
reduction in housing shortage due to migration and conversion of kuccha houses
into pucca houses.
Thus, rural-housing shortage is expected to decline to 53.8 million units by the end
of 2014 from 59.4 million units at the end of 2008. However, housing shortage in
urban areas will continue to rise due to migration towards urban areas and rising
trend of nuclear families. Housing-scarcity in urban locations is estimated at 19.3
million units at the end of 2008, which is likely to touch 21.7 million units by the
end of 2014.
b) Commercial space:
The term commercial space (also called investment or income property) refers to
buildings or land intended to generate a profit, either from capital gain or rental
income. Commercial property includes office buildings, industrial property, medical
centers, hotels, malls, retail stores, farm land, multifamily housing buildings,
warehouses, and garages. In many states, residential property containing more
than a certain number of units qualifies as commercial property for borrowing and
tax purposes. The commercial-office space in India has evolved significantly in the
past 10 years due to change in business-situation. The expansion of commercial
real-estate has been driven mainly by service seg ments, especially IT. Earlier,
commercial lands were concentrated in CBD (Central Business District) areas in
big cities. However, with the surfacing of IT and ITeS, commercial expansion
started moving towards city suburbs as more office-space is now required.
C) Retail space:
Retail property is a classification of zoning for property that is used for a store,
shopping center or service business. Real estate is another word used
interchangeably with retail property.In last few years, India's organized retail
industry has recorded high growth-rates. The retail real-estate is an unorganized
market with a few national players. Chief driving factors are luxurious lifestyles,
high disposable-incomes and increased tendency to spend. India's retail market
was mainly unorganized until early 2000. The organized retailing is likely to grow
in India despite the fact that the supply in retail real-estate industry is higher than
the demand.

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d) Hospitality space:
India's hospitality industry has enjoyed robust growth over the past few years
sustained by a benign political and economic environment. Growing incomes,
more weekend trips and better access to travel-related information over the
Internet have led to growth in hospitality. Premium hotels are more famous in key
business-destinations in India and are leading in popular tourist-destinations, like
Goa, which attract loads of foreigners. Demand-growth in this sector is anticipated
to outstrip supply-growth. Demand is expected to increase at a CAGR of 15%
while room availability is expected to record a CAGR of 9% across premium
segment. Business destinations are poised to see higher growth in room-inventory
compared to leisure destinations.
e) SEZ space:
SEZ or Special Economic Zones are specially demarcated geographical regions
that have more liberal economic laws as compared to the centralized laws of the
country. The basic purpose behind developing a special economic zone like SEZ
in India primarily in the developing countries is to attract mass foreign investments
in residential, commercial property, township construction planning, housing
planning in India. India real estate investments have attracted huge foreign funds
and thus the special economic zones in India have increased by and large.589
SEZs have been approved by the government so far Majority of SEZs are in the
IT/ ITeS sector.
1.4 Size of India real estate market
The real estate sector in India is being recognised as an infrastructure service that
is driving the economic growth engine of the country .the Indian real estate market
size is expected to touch US$180 billion by 2020.foreign direct investment (FDI) in
the sector is expected to increase to US$ 25 billion in the next 10 years, from
present US$ 4 billion. Demand is expected to grow at a compound annual growth
rate (CAGR) of 19 percent between 2010 and 2014, with tier I metropolitan city
cities projected to account for about 40 per cent of this. Growing infrastructure
requirements from sectors such as education health care and tourism are also
providing oppurnities in the real estate sector.
The construction industry ranks third among the 14 major sectors in
terms of direct, indirect and induced effects in all sectors of the economy. The
industry’s growth is linked to developments in the retail hospitality and

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entertainment (hotels, resorts, cinema theatres) sectors, economic services
(hospitals, schools) and information technology (IT)-enabled services(call centres)
The housing sub sector contributes five-six per cent to the country’s
gross domestic product (GDP).meanwhile, retail, hospitality and commercial real
estate are also growing significantly, catering to India growing needs of
infrastructure. India is going to produce an estimated 2 million new graduates from
various Indian universities during this year demand for 100 million square feet of
office and industrial space
1.5 Growth of real estate sector in india
The real estate sector in India assumed greater prominence with the
liberalisation of the economy, as the consequent increase in business
opportunities and labour migration led to rising demand for commercial and
housing space. At present,
the real estate and
construction sectors are
playing a crucial role in the
overall development of
India’s core infrastructure.
The real estate industry’s
growth is linked to
developments in the retail,
hospitality and entertainment (hotels, resorts, cinema theatres) industries,
economic services (hospitals, schools) and information technology (IT)-enabled
services (like call centres) etc.
The Indian real estate sector has traditionally been dominated by a
number of small regional players with relatively low levels of expertise and/or
financial resources. Historically, the sector has not benefited from institutional
capital; instead, it has traditionally tapped high net-worth individuals and other
informal sources of financing, which has led to low levels of transparency. This
scenario underwent a change with in line with the sector’s growth, and as of today,
the real estate industry’s dynamics reflect consumers’ expectations of higher
quality with India’s increasing integration with the global economy
“Residential real estate industry” has witnessed stupendous growth in the
past few years owing to the following reasons:

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 Continuous growth in population
 Migration towards urban areas
 Ample job opportunities in service sectors
 Growing income levels
 Rise in nuclear families
 Easy availability of finance
Demand for houses increased considerably whilst supply of houses could not
keep pace with demand thereby leading to a steep rise in residential capital values
especially in urban areas.Broadly, residential real estate industry can be divided into four
growth phases.
Phase I (2001-2005) was an initial growth phase with stabilising residential real
estate prices following the global
Recovery post the “dot com” bust and 9/11 terrorist attacks in New York. At the
same time, there was steady growth in Indian economic activity, noteworthy
recovery in IT/ITES industry, growing urbanisation and a rising trend towards
nuclear families.
Phase II (2006-2008) was a high growth phase where high demand for residential
real estate led to doubling of housing prices. Demand rapidly increased due to
India’s growing population, accentuated urbanisation, rising disposable incomes,
rapidly growing middle class and youth population, low interest rates, fiscal
incentives on interest and principal payments for housing loans and heightened
customer expectations.
Phase III (2009-2010) witnessed substantial slowdown and part recovery in
demand because of the global economic downturn, which led to a decline in
affordability and tight liquidity. The retreat of various real estate investors,
accompanied by slowdown in the capital markets, has resulted in oversupply and
falling prices.
Phase IV (2011-2014) is expected to remain a consolidation phase after
slowdown. Demand is expected to remain strong with capital values witnessing
modest rise. This period is expected to witness substantial supply of housing
especially in urban areas.
“The commercial real estate industry” in India has evolved significantly in
the past 10 years due to change in business environment. The growth of
commercial real estate has been driven largely by service sectors; especially IT-

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ITeS .Previously commercial properties were concentrated towards CBD (Central
Business District) areas in large cities. However, with the emergence of IT-ITeS,
which had huge office space requirement, commercial development started
moving towards city suburbs. It resulted in multi fold development of city outskirts
and suburbs like Gurgaon near New Delhi, Bandra and Malad in Mumbai, and the
Electronic city in Bangalore. In addition, over the last 10 years, locations such as
Bengaluru, Gurgaon, Hyderabad, Chennai, Kolkata and Pune have established
themselves as emerging destinations for commercial development, which are
competing with traditional business destinations such as Mumbai and Delhi. Tax
sops on the profits of IT-ITeS companies also led to stupendous development of
IT Parks and SEZs.
Demand for office space is directly linked to addition in number of employees,
which in turn is dependent on economic growth. When economy slows down,
companies hold their expansion plans leading to lower demand for office space.
The demand for commercial real estate was on an upswing between 2005 and
early 2008, driven by exceptionally high employee additions in the IT/ITeS sector.
The strong demand from domestic IT/ITeS companies and captives of large global
players was a result of increased business, primarily from the US and European
markets. A healthy domestic economy coupled with aggressive corporate
expansion plans led to strong demand from sectors such as Banking, Financial
Services and Insurance (BFSI) and media and entertainment. Furthermore, limited
supply of quality office space led to a sharp increase in lease rentals for
commercial office space in most micro-markets, with an average increase of 108
per cent between 2005 and early 2008, according to CRISIL Research.CRISIL
Research has estimated supply of office space at around 172 million square feet
in 10 major cities (Mumbai, NCR, Bangalore, Kolkata, Chennai, Hyderabad, Pune,
Ahmedabad, Chandigarh and Kochi) during 2009-11. Expected demand during
the same period is 70 million square feet Supply in the top 10 cities account for
approximately 70-75 percent of total office space supply in the country
1.6 Current Real Estate Scenario in India
As per a recent report prepared by the global property consultant, CBRE,
Assessing the Economic Impact of India’s Real Estate Sector’, The real estate
sector of India is estimated to have a total pipeline of nearly 3.6 billion square feet
lined up for completion in 2013, out of which 98% is concentrated in the residential
areas. The real estate sector, an inherent component of the construction industry,

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has a tremendous potential in our country. The proper tapping of the real estate
sector will also generate considerable economic opportunities.
Real estate is also an employment intensive sector and the predictions are it
will generate employment for at least 17 million people by 2025. However,
exhaustive cooperation of the Government is necessary for the real estate to
become an economically viable sector contributing consistently to the national
GDP. The 2013 statistics of the real estate sector shows that an investment of Rs
2,54,000 crore is necessary for the implementation of the construction projects in
the available land mentioned in the CBRE report which in turn will generate a
revenue of Rs 3,70,000 crore and provide countrywide employment opportunity for
7.6 million people.
1.7 Organized and unorganized real estate market in India
The unorganised players are characterised by contractors and small
builders who generally have only regional presence while organised players
include private real estate developers and government affiliated entities. India’s
real estate market can be classified into three segments: Residential, Commercial
and Retail. These three segments have witnessed rapid growth in the past few
years and have a tremendous growth potential. The commercial segment is
further divided into office space, hospitality, and industrial space.
a) Residential Segment
The residential real estate segment is highly unorganised and fragmented and
accounts for around 75% of the total turnover of the real estate sector in India.
The segment is categorised into premium housing, mid-market, and low-cost
housing. In recent years, maximum number of developments has taken place in
the premium housing segment. The residential segment has been experiencing

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tremendous growth in the past few years. It has seen major transformation from
its initial days of unplanned development to the present times when majority of
players are introducing planned townships with enhanced product offerings. The
segment is also characterised by increasing investments and growing FDI.
However, much of this high growth was seen in the higher income (premium)
category as developers primarily focused on this category and neglected the
middle and lower income groups. Further, this development was majorly
concentrated in the tier 1/metro cities. Nevertheless, the slackening demand in
premium housing and changing dynamics of the business propelled by the global
slowdown, falling stock markets and inflation compelled developers to shift their
focus to development of housing units for the middle and low-income group
categories which faced a shortage of affordable housing as well as in tier 1 and
tier 2 cities; as a result, there has been a spurt in real estate projects in these
cities with the regional players expanding their presence across India.
b) Commercial Segment
The commercial segment includes commercial offices, IT parks, and trading
spaces such as hotels, and restaurants, industrial buildings such as factories,
government buildings, and special economic zones (SEZs). The outsourcing
boom coupled with economic uptrend has created a huge demand for office
space in India and this in turn has boosted the commercial real estate segment.
Further, the hospitality sector is experiencing tremendous growth in India on
account of increased domestic as well as foreign tourists. The surge in number of
travellers, both leisure and business, has fuelled demand for hotel rooms. Further,
the FDI policy that has permitted 100% investment through the automatic route in
hotels and tourism has attracted several international hotel chains. According to
the Ministry of Tourism, currently India has 110,000 rooms but there is a shortage
of around 150,000 rooms and this demand-supply gap is expected to further
boost the demand for real estate in this segment.
Currently many SEZ projects are either complete or are in
progress. As the fiscal benefits on the IT parks are expected to end in 2009, the
construction of SEZs is on full swing and many developers are planning to
construct SEZs. There are around 552 formally-approved SEZs in India, out of
which 274 are notified since the SEZ Act came into force in 2005. Out of these,
the IT/ITeS parks account for around 61% of the formally-approved and 66% of

10. Page | 10
the notified SEZs. The development of SEZs attracts both corporate houses as
well as developers. However, with the companies, particularly the IT & ITeS
sector, differing their expansion plans due to the current economic conditions this
sector is experiencing a slowdown in demand.
c) Retail Segment
The retail segment has undergone a major transformation as unorganised
players have given way to the organised sector (malls and multiplexes) gradually.
The Indian organised retail sector has good growth prospects and hence
prominent corporate houses have entered this segment under multiple retail
formats and have announced major expansion plans. Moreover, many
international players have entered the segment and some more have plans to set
up operations in India. Some of the retail formats operational in India are specialty
stores, department stores, supermarkets/convenience stores, hypermarkets and
discount stores.
1.8 Trends in real estate
a) Residential
Despite strong fundamentals backing the residential real estate, the segment is
highly influenced by economic cycles. Owing to global meltdown, the residential
real estate market in India too witnessed an astounding fall in demand and capital
values, between first half of 2008 and first half of 2009. However, the sector
experienced a pickup in demand during the second half of 2009 across major
cities mainly attributed to improvement in economy. Residential projects across
cities saw several new mid-income housing projects being launched by
developers to attract potential buyers. Demand for houses mounted as the global
economy improved bringing back financial confidence to the home buyers along
with low interest rates. End-users, who had put their purchasing plans on hold due
to the fall in affordability levels and job-related uncertainties, started booking
houses. Improvement in demand also brought back the construction activity to
back on track. CRISIL Research expects around 668 million square feet of
residential supply to be constructed between 2009-11 in top 10 cities (Mumbai,
NCR,Bengaluru, Chennai, Kolkata, Ahmedabad, Kochi, Chandigarh, Pune and
Hyderabad). These top 10 cities account for around 15-20 per cent of overall
supply in urban India.

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b) Commercial
During the economic slowdown, demand for commercial real estate dropped
sharply leading to sharp correction in lease rentals since the second half of 2008.
Lease rentals have corrected in the range of 25-50 per cent during the first half of
2008. With demand slowing substantially, most of the urban cities are faced with a
humungous oversupply of office space. Subdued demand and rentals has
impacted the execution adversely in addition to cancellation of many projects.
Downturn in the commercial real estate market in India, which had commenced
during the second half of 2008, continued during the second half of 2009.The
sustained decline was largely the result of postponement of expansion plans by
corporates, which adversely impacted demand for office space. IT/ITeS, which
had been a major demand driver for the sector in the last 2 years, increased
utilisation rates of existing commercial space by increasing the number of shifts.
The resultant drop in demand for commercial office space led to correction of
lease rentals in the range of 25-50 per cent since the peaks touched during the
first half of 2008. According to CRISIL Research, in 2010, commercial office lease
rentals are expected to decrease by an additional 3 per cent at most of the micro
markets, in view of the considerable oversupply across cities and lack of adequate
demand.
c) Retail
In the 4-year period, 2005 to 2008, demand for retail space was higher than the
supply, leading to an increase in lease rentals on account of increase in footfalls
and penetration of organised retail. During the period, lease rentals increased by
95 per cent (average across 10 major cities). However, after 4 consecutive years
of rising lease rentals, 2009 witnessed a sharp decline in lease rentals (average
45 per cent decline) given the economic slowdown. Post the crash of late 2008,
the Indian retail real estate market retailers revaluated expansion plans and
renegotiated with developers in an attempt to bring down lease rentals in malls.
This impacted the development of new retail malls and most of the developers
delayed their construction plans.Lease rentals declined at an average of 14 per
cent in 2009 with the National Capital Region (NCR), specifically Noida and
Greater Noida, witnessed the sharpest fall in retail lease rentals at 31 per cent.
Concentration of malls in several areas of NCR gave rise to a skewed demand-
supply scenario, leading to relatively high vacancy levels.

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1.9 Why invest in real estate?
Flying high on the wings of booming real estate, property in India has become a
dream for every potential investor looking forward to dig profits. All are eyeing
Indian property market for a wide variety of reasons:
• It’s ever growing economy which is on a continuous rise with 8.1
percent increase witnessed in the last financial year. The boom in
economy increases purchasing power of its people and creates
demand for real estate sector.
• India is going to produce an estimated 2 million new graduates from
various Indian universities during this year, creating demand for 100
million square feet of office and industrial space.
• Presence of a large number of Fortune 500 and other reputed
companies will attract more companies to initiate their operational
bases in India thus creating more demand for corporate space.
• Real estate investments in India yield huge dividends. 70 percent of
foreign investors in India are making profits and another 12 percent
are breaking even.
• Apart from IT, ITES and Business Process Outsourcing (BPO) India
has shown its expertise in sectors like auto-components, chemicals,
apparels, pharmaceuticals and jewellery where it can match the best
in the world. These positive attributes of India is definitely going to
attract more foreign investors in the near future.
a) Other people’s money:
One of the hallmarks of real estate investing is the ability to use the rental income
you earn each month to pay down your mortgage financing. This benefit is unique
to real estate investment. Generally speaking the rental income you earn will be
sufficient to cover your mortgage payments and the other expenses associated
with your investment unit.
b) Reliable Returns
While tradition investments such as stocks and bonds can provide exceptional
opportunities for wealth, the inherent risks are evident with the market’s constant
fluctuation. Real estate, on the other hand, is far more consistent in terms of

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market volatility; it can continue providing you steady returns even during lulls in
the economy.
c) Tax benefits
A number of deductions can be claimed on your tax returns ,such as intrest pain
on loan, repairs and maintenance, rates and taxes,insurance,agent’s fees, travel
to and from the property to facilitate repairs and buildings depreciation .Also, when
you own an income property, the internet on the mortgage payments is tax
deductible. All this will help you to save money when it comes to tax time.
d) Leverage
Leverage simply means using borrowed capital to enhance the earning potential
of an investment, and when compared to other investment classes, real estate
delivers the greatest opportunity to use the power of leverage. Since real estate is
tangible asset, financing is generally more really attained and your potential
returns are heightened considerably compared to a non-leveraged investment
e) Inflation Hedging
The inflation hedging capability of real-estate stems from the positive relationship
between GDP growth and demand for real estate. As economies grow and
develop, added pressure is put on rental properties. This causes rental prices to
increase, which will ultimately increase your revenue.
f) Diversification
As the cornerstone of a well-balanced investment portfolio, diversification helps to
offset volatility in any one particular asset class and ultimately reduces your
overall portfolio risk. Investing in real estate is a powerful way for you to add a
valuable layer of diversification to your investment portfolio.
g) Positive cash flow
Many real estate investments offer positive monthly cash flow after your mortgage
and other related expenses are paid. This cash flow will increase over time as
your mortgage financing decreases incrementally and rental rates increase. This
will create a growing source of secure retirement income for you.
h) Long term investment
Many people like the idea of an investment that can fund them in their retirement
.Rental housing is one sector that reraely decrease in price, making it a good
option for long- term investments. Real estate will typically increase in value as

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time goes on, compared to a savings account or an RSP that will lose value as
inflation rises.
i) Value increases as it appreciates
As communities grow, so too does the value of your property. History has shown
that real estate prices have continued to steadily increase over the years. The
longer you hold onto your investment property, the more potential you have to get
a high return. This leads us into long- term investment.
j) The choice is yours:
Residential or commercial, multi family or single family, hotels or offices? you get
to decide. There are plenty of options out there, and doing some research will help
you find the right property for you. Investing in a property that you are familiar with
will help calm the nerves that can ne prevalent when making big decision.
1.10 Different types of investments in Real Estate
Some people invest their money in real estate; others choose different
investments. Most people use their real estate investment as a place to live.
Others buy various types of property with the intention of collecting rent from
others for the use of the property. Whatever investment a person chooses, they
usually do so with the intent of making their money work for them.
The past history of real estate investment has generally been favourable.
Certain economic conditions, however, have made what should have been a good
investment turn sour. Most people have often made money on real estate because
the value of property increased over time.
The government also gives tax benefits to people who buy their own homes.
Most people find that real estate is their primary investment. Because
different people have different needs, a variety of homes are available. In addition
to the familiar single-and multiple-family houses, there are condominiums,
cooperatives, and manufactured homes.
a) Condominiums:
Those who want all the advantages of home ownership but do not want the
accompanying maintenance problems, such as snow removal and lawn mowing,
may consider an investment in a condominium. A condominium is an individually
owned unit in a building or group of buildings. The owners of individual
condominiums agree to obey written set of rules that guide the operation of the
condominium complex, known as Covenants, Codes, and Restrictions (CC&Rs).

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The owners pay the mortgages and taxes on their units only. The owners also
pay a proportionate share of the expense of keeping up common areas such as
hallways, entrances, laundry rooms, and lawns. The condominium owner holds
title, the written proof of ownership to his or her unit. The owner, therefore, is free
to sell the unit at will to anyone.
There are, however, some disadvantages to condominiums. Many share
common walls with neighbouring units, so privacy may be sacrificed. Equally
important, individual owners have little control over maintenance fees. If most
other owners within your condominium building want a particular service, you will
have to go along with them and pay for the service.
b) Timesharing Plans
Some people want to invest in property located in vacation areas, such as
mountains or aches. Since these people will not be using their resort “homes” for
more than a few weeks at a time, many choose timesharing plans. In timesharing
plans, different investors buy into the same condominium, often for as little as one
week at a time. A major disadvantage of time-sharing is that the buyer can select
only those weeks that are open. Weeks during prime seasons—winter in a skiing
resort, summer in a lake resort—will be in great demand. The cost of these weeks
is generally much higher than that of weeks during off-season periods.
c) Cooperatives
Cooperatives are similar to condominiums, in that they are individual units within
larger Building. However, you do not actually own a unit. A cooperative is a form
of ownership in which you buy shares in a non-profit organization that owns your
building.You are, in a sense, responsible for paying a neighbour’s share if the
neighbour fails to pay. The cooperative, like a corporation, is run by a board of
directors. Thus, the board of directors must approve of a buyer before you may
sell.
d) Manufactured Houses
Many people, especially young people just starting out cannot afford traditional
houses
But want some of the comforts associated with them. For such people,
manufactured houses may be a wise choice. Manufactured houses are
constructed in factories and then shipped completely assembled to their final sites,
usually in a park with similar houses. Most are set on concrete foundations, and

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are relatively small and easy to maintain. Often they come equipped not only with
all the typical household appliances, but also with bedroom, dining room, and
living room furniture. A major advantage of manufactured houses is their low cost
of $35,000-$90,000. In many instances, they can easily be paid off within 10
years. Most manufactured homes are Putin parks with similar homes. The park
charges a rental fee for the pad site and a utility hook-up charge. Other
manufactured homes are placed in neighbourhoods with homes that have been
constructed from the ground-up. There is some confusion between a
manufactured home and a trailer home. Both are manufactured off-site and
brought to the property by truck. The difference is trailers are usually cheaper
($20,000+), and designed to be movable since they have wheels. Some people
will remove the wheels, but may return them at a later date if they wish to move
the home.
e) Income Property (Cash Flow Investment)
Many people are not content to sit back and wait until they sell a piece of
real estate before they get a return on their investment. These people prefer to
invest in income property, property on which rent or some other form of payment is
earned. Farms, stores, factories, shopping centres, and office buildings are some
income properties that you can invest in. Two-to-four-family houses (duplexes and
four-plexes) are income property as well. You buy the house, occupy one floor or
unit, and rent out the other units. The rental income can then be used to help you
pay off the mortgage. Unlike a condominium or a cooperative, a building that you
own is yours to run as you wish.
f) Undeveloped Property (Non-Cash Flow Investment)
Undeveloped property is land that generally is in its natural state. Usually this
land is not even cleared. No roads go through it, and utilities such as water and
electricity are not yet in. Often, but not always, such land may be fairly
inexpensive. People usually invest in developed property with the hope that its
value will increase sharply over the years. Sometimes it does. The land may be
wanted as the site of a shopping centre or housing development. Perhaps a new
industrial park may be built on it. In other cases, however, very little may happen
to its value. Its value may even go down. A planned highway may never be built,
so the undeveloped land along its route may, therefore, remain undeveloped.

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Not all the considerations involved in the decision to buy real estate are
related to money. For example, some people want to live in a city. Others do not.
Some want a home that is small and easy to clean. Others want a large house
with plenty of rooms. Some really do not care where the house is located. Others
feel that a certain neighbourhood or address makes a great difference to their
social standing. For some people, a particular house is viewed as a way station as
their job takes them from place to place. For others, a house is a permanent
residence.
1.11 Intermediaries in real estate:-
a) Savings and Loan Associations
While savings and loan associations (S&Ls) are not the largest financial
intermediary in terms of total assets, they are the most important source of funds
in terms of dollars made available for financing real estate. S&Ls have sustained
large asset growth in recent years, and currently the total assets of the 3,900
associations are second only to commercial banks. Traditionally, they have been
the largest supplier of single-family owner-occupied residential permanent
financing, although S&Ls are not limited solely to this type of financing. Savings
and loan associations also make home-improvement loans and loans to investors
for apartments, industrial property and commercial real estate. Recently, primarily
as a result of the restructuring of lending activities through deregulation, the
average S&Ls assets invested in mortgages has continued to decrease. As
recently as 1980, on the average over 80% of an association`s assets were
invested in loans on real estate. By late 1983, that percentage had dropped to
below 60%.
b) Commercial Banks
In terms of total assets, the more than 14,500 commercial banks are the largest
financial intermediaries directly involved in the financing of real estate.
Commercial banks act as lenders for a multitude of loans. While they occasionally
provide financing for permanent residential purchases, commercial banks` primary
real estate activity involves short-term loans, particularly construction loans
(typically six months to three years) and to a lesser extent home-improvement
loans. Most large commercial banks have a real estate loan department; their
involvement in real estate is through this department. Some of the largest

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commercial banks are also directly involved in real estate financing through their
trust departments, mortgage-banking operations and real estate investment trusts.
c) Life Insurance Companies
Insurance companies play an important role as providers of capital for real
estate from an equity (owner) standpoint. Unlike the savings and loan association
or the bank, which normally deals directly with the borrower, the 1,800 insurance
companies typically do their lending through local correspondents, either
mortgage brokers or mortgage bankers. Insurance companies normally specialize
in large-scale projects and mortgage packages. Historically, between 25 and 30%
of their assets have been invested in mortgages. Insurance companies receive
their money through the payment of premiums by their policyholders and since
both the inflow of premiums and the outflow of claim payments can be predicted
with reasonable accuracy, insurance companies are able to invest in those assets
yielding higher returns but less liquidity than is available to either banks or
associations. For their real estate investments, this normally means long-term
commercial and industrial financing. While insurance companies have historically
invested in residential mortgages, this form of investment has continued to
become a smaller and smaller percentage of their portfolio. Few insurance
companies presently originate residential mortgages.
d) Mutual Savings Banks
Located primarily in north eastern states, the 500 mutual savings banks are an
important supplier of real estate financing. As their name indicates, these banks
are owned by their depositors. Who receive interest on their deposits. . Over two-
thirds of the mutual banks maintain membership in the FDIC. The remaining ones
are insured by state savings insurance agencies. These state agencies exercise
authority over both the type of investments and the amount of their assets
invested in particular types of real estate.
e) Mortgage Brokers
Mortgage brokers are not direct or primary suppliers of capital. However, they
do play an important and necessary role in the financing process. A mortgage
broker is a person who serves to bring together the user of capital (borrower or
mortgagor) and the provider of capital (lender or Mortgagee). For this service, a
finder`s fee equal to one percent or so of the amount borrowed is normally paid by
the borrower. The financial success of the mortgage brokerage firm depends upon

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the ability to locate available funds and to match these funds with creditworthy
borrowers.Certain sources of funds, particularly insurance companies and the
secondary sources discussed below, do not always deal directly with the person
looking for capital; rather, they work through a mortgage broker. Thus, if you wish
to borrow from certain lenders you would need to go through a mortgage broker.
Normally, the mortgage broker is not involved in servicing the loan once it is made
and the transaction is closed.
f) Mortgage Bankers
The mortgage banker is also a financial middleman; however, the services offered
include more than simply bringing borrowers and investors together. Mortgage
bankers normally make mortgage loans, package these loans and then sell these
packages to both primary lenders and secondary investors. Financial help is often
sought from a lender, typically a commercial bank. The bank becomes a
warehouse for mortgage money, and the mortgage banker draws on these
mortgage funds until payment is received from the investors. Usually the mortgage
banker continues to service the loan (collect debt service, pay property taxes,
handle delinquent accounts, etc.) even after the loan has been packaged and
sold.
g) Pension Funds
Pension funds are one of the newer sources available for financing real estate.
Whereas these funds historically were invested in stocks and bonds, the recent
growth of pension funds has meant new outlets had to be found for their
investments. This growth, plus the favourable yield available through real estate
investments, has resulted in active participation in financing real estate projects.
Besides making mortgage loans, pension funds also own real estate. The majority
of all their real estate activity is done through mortgage bankers and mortgage
brokers.
h) Real Estate Investment Trusts (REITS)
Federal legislation passed in 1961 created Real Estate Investment Trusts (REITs).
REITs pool the money of many investors for the purchase of real estate, much as
mutual funds do with stocks and bonds. There are three types of REITs. An equity
trust invests their assets in acquiring ownership in real estate. Their income is
mainly derived from rental on the property. A mortgage trust invests in acquiring
short term long term mortgages. Their income is derived from the interest they

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obtain from their investment portfolio. A combination trust combines the features
of both the equity trust and the mortgage trust. Their incomes come from rentals,
interest and loan placement fees.
1.12 Foreign direct investment in india real estate sector
India is second largest growing economy in the world after china.
Most of the FDI & FII’s having their eye on India and owning their share also. FDI
in real estate is only 1% of the total GDP in India (US$ 4billion), Can be improved
by liberalizing the restrictive laws ensuring transparency in operations and by
confidence building measures in the foreign investors, if any Government gets
power with majority have given the stability, and it influence the confidence of
investors. To raise the standard of living of Indian citizen, Government has
allowed FDI in real estate. Earlier FDI was restricted to development of Industrial
parks, hotels, integrated townships and SEZ’s. From March 3, 2005 onwards
government permitted FDI up to 100% in townships, housing, built-up
infrastructure & construction – development projects.
FDI is now permitted in:
 Housing
 Townships
 Commercial Premises
 Hotels
 Resorts
 Hospitals
 Industrial parks
 Educational institutions
 Recreational facilities
 SEZ’s etc.
The Foreign direct investment (FDI) inflows estimated to be 10632 crores (Apr-
Jan) of FY 2008-09. It is expected to touch US$ 25 billion to US$ 28 billion by
2010. Key players include Ascendas from Singapore, EMAAR MGF from Dubai,
Salim Group, Indonesia, Unitech, DLF, Ansals, Shapoorji Pallonji, Raheja, Sobha,
and Parsvnath Developers etc., which they have launched and completed huge
projects across the country.The FDI in Indian real estate sector is permitted
through the automatic route across all real estate segments except agricultural
and plantation properties.

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1.12.1 Guidelines for FDI Application in Indian Real estate (or) Regulatory
Framework
Minimum Capitalization
 For wholly owned subsidiaries – US$ 10 million.
 For Joint Ventures with Indian Partners -US$ 5 million, to be brought in
within 6 months of commencement of business.
 Original Investment cannot be repatriated before a period of three years
from completion of capitalization.
 The investor may exit earlier with prior approval from Foreign Investment
Promotion Board (FIPB).
Minimum Area Requirements
 Minimum land area to be developed is case of serviced housing plots is 10
hectare or approximately 25 acres.
 In case of construction development projects, a minimum built-up area of
50,000 sqm.
 In case of a combination of the above two projects, any one of the above two
conditions should suffice. This limit has been brought down from 100 acres
that was required to invest in integrated townships subject to FIPB approval.
 Time Frame & Rules
 At least 50% of the project to be developed within 5 years from the date of
obtaining all statutory clearances.
 Investor cannot sell undeveloped plots- where roads, water supply, street
lighting, drainage, sewerage and other convenience are not available.
Other Amendments
 IT/Business Park: Foreign investment in IT parks subject to such IT parks
providing space to at least 3 tenants.
 Industrial/Logistics/Warehousing: FDI policy in these properties is liberalized
and now foreign investors can invest in them at the construction
stage subject to a minimum of 50,000 sqm.
 In addition to the above, the guidelines have also been relaxed for
investment by foreign & domestic venture funds in real estate. Venture funds
fall under the Foreign Institutional Investment (FII) category rather than FDI
and have to be registered with the SEBI. Venture funds can invest in real
estate if each investor brings in not less than US$ 11,111 and eighty percent

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of the funds are invested in companies not listed on the stock exchanges or
financially weak companies.
Key regulatory developments:
 Securities & Exchange Board of India (SEBI) has allowed Indian venture
capital firms to invest in real estate.
 100% Foreign Direct Investment (FDI) is now allowed in the construction
sector under Automatic route.
 Foreign investors can now invest in commercial real estate development
projects having minimum built up area of 50,000 square meters.
 Minimum area threshold for FDI in Integrated Townships reduced to 25
acres from 100 acres. Because, the lower threshold is more manageable by
the first time foreign investor.
 Minimum equity investment cap of $10 million for 100% FDI projects and $5
million in Joint ventures.
 Foreign investors only barred from trading in undeveloped land.
 Another significant change is the removal of sectorial restrictions. The scope
is expanded to cover residential, commercial or shopping malls. The new
guidelines for India can trigger an investment of $1-1.5 billion annually.
1.13 Challenges faced by the Real Estate Sector
The growth of the real estate sector, in spite of its immense potential to
contribute to India’s economic development and its wide employment providing
capacity, is restricted by many factors. Borrowing costs are extremely high, a
creaky infrastructure undergoing very slow development, approval processes after
crossing numerous red tapes prove to be extremely lengthy, a majorly choked
supply line and of course lack of proper institutional funding are some of the major
impending factors.Real Estate consultancy, Cushman & Wakefield, furnished a
report on private equity (PE) in real estate investments according to which, “Around
US$ 2 billion (Rs 11,854 crore) is available with PE firms for deployment in the
Indian real estate sector”. However, PE investments plummeted by 46% in the first
half of 2013. The PE investments recorded in the first half of 2013 was a
discouraging US$ 276 million (approximately Rs 1,638 crore), as compared to last
year’s valuation of US$ 514 million (Rs 3,050 crore) for the same period.
2013 also witnessed a very low number of major real estate deals, only 13 in
the first half of 2013. Cushman and Wakefield attributes this to an uncertain market,

23. Page | 23
and the sudden deceleration in India’s economic growth, the major factors for which
are the record devaluation of rupee against dollar and political deadlocks (factors
that has been plaguing numerous industries all over the country).
It is noteworthy that despite a slowdown in the construction market and reduced
number of investment worthy projects in India, real estate features as the fourth
most invested sector by PE funds. Currently, it was estimated that about US$ 2
billion is ready to be deployed in the real estate sector of the Indian market.”
Though PE funds are still interested in investing in the real estate sectors, the
market sentiments paint an entirely different picture. Because of the current shadow
of uncertainty looming over the market, funds other than the PE funds are only
interested in investing in real estate deals with solid basis, so the exploration for the
right projects continue, which is slowing down the development of the real estate
sector.
1.14 Major established domestic players in real estate sector company
The Indian real estate sector has traditionally been an unorganized
sector but it is slowly evolving into a more organised one. The sector is embracing
professional standards and transparency with open arms. The major established
domestic players in the sector are DLF,Unitech,Hiranandani constructions, Tata
housing,Godrej properties ,Omaxe,Parvanath,Raheja developers,Ansal properties
and infrastructure and Mahindra life space developers ltd to name a few,
international players who have madea name for themselves in India include Hines,
Tishman speyer,Emaar properties, Ascendas, Capitalland,Portman holdings and
Homex
1) DLF Ltd
DLF group is a leading real estate developer in India since 1946.DLF has been
instrumental in putting Gurgaon on the urban landscape of india.DLF has over 220
million sqft. of existing development projects and 574 million sq ft of planned
projects.DLF has so far developed 22 urban colonies and an entire integrated
3000-acre township-DLF city .DLF’s development projects across India span over
30 cities:Gurgaon,Ambala,Shimla,Amritsar,Jalandhar,Ludhiana,Sonepat,Panipat,
Chandigarh,panchkula,Noida,newdelhi,Jaipur,indore,Ahemdabad,baroda,lucknow,
Faridabad,mubai,pune,Nagpur,goa,kochi,kokkanad,Chennai,Bangalore,vytilla,Coi
mbatore,Hyderabad,bhubhaneswar,and Kolkata

24. Page | 24
2) UNITECH
Established in 1972, unitech is India’s leading real estate developer it is the first
developer to have been certified ISO 9001:2000 in north India.
Project spectrum: unitech offers diversified projects across residential
,commercial/IT parks ,retail ,hotels, amusement parks and SEZs segments .Unitech
was the first real estate company has over 600000 share holders .Unitech and
Norway based Telenor group came together to build uninor-a telecommunication
services company providing gsm services across India
3) Ansal API
Established in 1967 as a family business, Ansal API today is clearly amongst the
real estate leaders of India. Having established itself very strongly in the NCR
region, Ansal API is now focusing on ventures in cities like Bhatinda ,Mohali
,Amritsar, Ludhiana, Jalandhar, jodhpur, Ajmer, sonepet, panipet karnal,
kurukshetra,Faridabad,Gurgaon to name a few. Ansal API has till date, developed
and delivered more than 190 million sqft, the company currently has a land reserve
of about 9335 acres
Project spectrum: integrated townships, condominiums, group housing, malls
shopping complex, hotels, SEZ, IT parks and infrastructure and utility services
4) Sobha developer’s ltd
The company was founded in 1995 by PNC Menon after he returned home the
Middle East where he was acclaimed for quality interiors and constructions since
1977.today this RS10 billion plus company is one of the largest and only backward
integrated company in the constructions arena. Its IPO in 2006 was oversubscribed
by 126 times that created history, being the first event of its kind in Indian capital
markets.Till date Sobha has completed 47 residential projects, commercial projects
and 166 contractual projects covering about 36 million sqft area in 18 cities across
India (as of 31st mar 2010).the company currently has 21 ongoing residential
projects aggregating to 8.5 million sqft ,while 4.24 million sqft of contractual projects
are under various stages of construction.
5) Parsvnath developer’s ltd
Incorporated in July 1990 by Mr Jain in Delhi, Parsvnath today has a substantial
pan India presence in over 45 cities across16 states. The company has emerged as
one of the most progressive and multi-faceted real estate and constructions entities
in India.

25. Page | 25
Project spectrum: housing (premium, mid-market as well as affordable), office
complexes, shopping malls &hypermarkets, hotels multiplexes, IT parks and SEZs.
1.15 International property consultants:
1) CB Richard Ellis is the global leader in real estate services. Each year, they
complete thousands of successful assignments with clients from the gamut of
industries. This volume creates market knowledge that allows them to seize
opportunities, speed the business process and create the most thorough, precisely
accurate picture of global commercial real estate conditions and trends. Every day,
in markets around the globe, they apply their insight, experience, intelligence and
resources to help clients make informed real estate decisions.
2) Colliers International provides a range of services to commercial real estate
users, owners, investors and developers worldwide. Primary services include
consulting, corporate solutions, investment services, landlord and tenant
representation, project management, property and asset management, valuation
and advisory services. The organization serves the hotel, industrial, mixed-use,
office, retail and residential property sectors.
3) Jones Lang LaSalle is a financial and professional services firm specializing in
real estate services and investment management. Their more than 30,000 people in
750 locations in 60 countries serve the local, regional and global real estate needs
of those clients, growing the company in the process. In response to changing client
expectations and market conditions, they assemble teams of experts who deliver
integrated services built on market insight and foresight, sound research and
relevant market knowledge.
4) Cushman & Wakefield assists clients in every stage of the real estate process,
representing them in the buying, selling, financing, leasing, managing and valuing
of assets, and providing strategic planning and research, portfolio analysis, site
selection and space location, amongMany other advisory services. Its 13,000
worldwide employees, located in 231 offices throughout 58 countries, assess each
client's needs and implement solutions that fit the client's strategic, operational, and
financial goals.
5) Grubb & Ellis Company is one of the largest commercial real estate services
and investment companies in the world. With 6,000 professionals in more than 100
company owned and affiliate offices draw from a unique platform of real estate
services, practice groups and investment products to deliver comprehensive,

26. Page | 26
integrated solutions to real estate owners, tenants and investors. The firm’s
transaction, management, consulting and investment services are supported by
highly regarded proprietary market research and extensive local expertise.
6) Coldwell Banker Commercial With a collaborative network of independently
owned and Operated affiliates, the Coldwell Banker Commercial organization
comprise over 220 companies and more than 3,400 professionals throughout the
U.S., as well as internationally. In fact, CBC possesses the largest geographic
footprint in today’s commercial real estate marketplace. The organization’s
worldwide headquarters are in Parsippany, NJ.
7) The Sperry Van Ness organization of affiliates is the only brokerage firm that
markets all properties on a national basis to a 100,000strong brokerage and
investment community. Because of its national reach that includes primary,
secondary and tertiary markets, the Sperry Van Ness Organization excels at
seamlessly locating investment options on behalf of clients across the country while
leveraging the power of all brokers — even those with competing firms.
8) TCN Worldwide is continuously improving its services and processes by
anticipating the needs of members and their clients and utilizing the years of local
expertise of the members. At the same time, they are constantly developing and
implementing the future innovations which will ensure the company's long-term
success and position the member firms as leaders within their local market.
9) CORFAC International is an organization of independently owned commercial
real estate services firms with local and regional expertise throughout the Americas
, Europe and Asia. CORFAC firms specialize in office, R&D and industrial
brokerage, corporate real estate services, investment property sales, tenant
representation, land sales, retail Leasing, property management and property
consulting.
10) Co-star Group Inc. is commercial real estate's leading provider of information,
analytic and marketing services. Founded in 1987, Co-star conducts expansive,
ongoing research to produce and maintain the largest and most comprehensive
database of commercial real estate information. Its suite of online services enables
clients to analyse, interpret and gain unmatched insight on commercial property
values, market conditions and current availabilities. Headquartered in Washington,
DC.

27. Page | 27
1.16 Online marketing in real estate sector in India
With a rising number of property portals entering the market, the online
real estate business is expected to improve gradually as these websites bring
transparency by providing high quality information about projects, believe industry
experts.Property portals are increasingly becoming a tool for research on buying,
selling and leasing residential or commercial properties in many parts of the
country, as the amount of information listed on these sites is increasing.
Currently, the size of the property portal market is around Rs 250 crore going
by the topline of some of the listed portals in the country. This market is expected to
grow at a CAGR of 50-100% in the coming years, mainly on the back of increased
focus on this medium of communication by buyers as well as developers. This
model also helps decision-making faster for buyers. By increasing the quality and
quantity of information available to end-users, attempt to bring in greater
transparency to the entire gamut of buying/selling properties. It is our constant
endeavor to increase the amount of information listed about a particular property
and to avoid spam or incorrect listings. According to experts tracking the realty
sector, sites such as Magicbricks.com, 99acres.com, Makaan.com,
IndiaProperty.com and CommonFloor.com are fast becoming the choice of
consumers looking for renting a property, as well as for developers.
The online real estate market is yet to reach an inflection point as seen in the
travel or e-commerce sector. However, with the penetration of internet more and
more consumers in the urban areas have started using this medium as the first
point of search for all their real estate needs.
Top 5 Indian property portals
The top 5 sites according to alexa.com are listed in the table below;
Rank Alexa ranking
global
Alexa ranking
India Portal
Bounce
rate
1 2263 176 www.99acres.com 32.70%
2 2860 236 www.magicbricks.com 36%
3 3929 316 www.commonfloor.com 35.50%
4 7001 400 www.indiaproperty.com 50.00%
5 12946 437 www.housing.com 29.30%
Alexa Traffic Rank Table - Indian Property Portals (November 11, 2013)

28. Page | 28
In terms of the Alexa traffic ranking, 99acres.com tops the
list at being the 176th most visited website by the people of India, which is
impressive. Magic bricks follow second, in turn followed by Common floor at third
place on the podium. Positions four and five are held by India property and Housing
in that order. Please note that Housing has just made the transition from
housing.co.in to housing.com which has cost them some serious rank loss at Alexa
but by this time next year, their Alexa rank should improve significantly, we
reckon.In terms of bounce rates, Housing is at a cool 29.30% while India property
has a pretty high and unhealthy bounce rate of 50%, meaning that the average
home buyer looking for property on the internet is spending a lot more time on
Housing.com Then indiaproperty.com

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2.1 Puravankara Projects Ltd
An ISO 9001 certified company, the Puravankara Projects
Limited (PPL) was incorporated on 3rd June 1986 in Mumbai as a private limited
company under the name of Puravankara Constructions Private Limited. Now it
emerged as a leading real estate developer, provides residential flats and
commercial, serving the needs of a discerning clientele. The Company's operations
cover Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Colombo
and the United Arab Emirates (U.A.E). Also have representatives in the United
Kingdom and the United States. PPL have completed many residential and
commercial projects covering approximately 4.73 million sq.ft of saleable area. The
network of the company expanded to Bangalore in the year 1987 and commenced
its operations in Bangalore during the year 1990, also launched its first residential
project. The name of the company was changed to Puravankara Projects Limited
and the status also changed to a public limited company, the fresh certificate of
incorporation consequent on change of name and status was granted to the
company on 19th August 1992. PPL was certified as an ISO 9001 compliant
company by DNV in the year 1998. One of the company's residential
projects, Purva Park was nominated as a finalist in the International Prix excellence
awarded by the FIABCI, Paris in the identical year of 1998. During the year 2002,
PPL obtained the CRISIL DA2+ rating and set up its office in U.A.E. The Company
had spread its wing to Chennai, set up its operations in Chennai during the year
2004. PPL had entered into a joint venture with the Keppel Investment Mauritius
Private Limited in 2005. During the same year 2005, set up its operations in Kochi
and obtained approval from the Board of Investment in Sri Lanka. The Company
Joint Venture with Keppel Land Limited, Singapore had launched Elite
Promenade in JP Nagar, Bangalore during July 2005. In recognition of the quality
projects and for delivering properties on time to customers with clear title to
properties, the company received DA2+ rating from CRISIL in the year 2006. In
June 2006, PPL had signed a Memorandum of Understanding (MOU) with the City
Municipal Council (CMC), Yelahanka in an effort to develop the double road
connecting the Doddaballapura road to Yeshwanthpura road via Attur. PPL tapped
capital market by the way of its Initial Public Offering (IPO) in July of the year 2007.
The Company bagged the bid from Andhra Pradesh Industrial
Infrastructure Corporation (APIIC) in November 2007 to develop a Hi-tech City in

30. Page | 30
Hyderabad. PPL made its foray into the affordable Housing segment and launched
a 100% owned subsidiary called Provident Housing and Infrastructure during in
August of the year 2008.
2.2 Organizational background
The Puravankara Group, headquartered in Bengaluru, was
established in 1975 and has over 38 years of experience in property development,
real estate and construction sectors in India, and one among the largest in South
India that serves the needs of a discerning clientele in housing, commercial and
retail spaces. The Group began operations in Mumbai Andhra’s established a
considerable presence in the real estate industry in metropolitan cities of
Bengaluru, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Kolkata and
Overseas in Colombo and Dubai with a focus on developing residential (comprising
of luxury and premium affordable housing projects) and commercial projects.
They operations span all aspects of real estate development, from the
identification and acquisition of land, to the design, planning and execution and
marketing of our projects. They believe they have established a strong brand image
and a successful track record in the South Indian real estate industry due to our
commitment to developing high quality projects. The residential properties that they
develop consist of apartment complexes, villas, townhouses, as well as premium
affordable housing projects, which we develop through our wholly-owned subsidiary
Provident Housing Limited (“Provident”). Our commercial projects include retail and
office premises. A majority of our Completed Projects, Ongoing Projects and
Upcoming Projects are situated in Bengaluru, Kochi, Chennai, Coimbatore,
Hyderabad, Mysore and Kolkata. In addition, we have Land Bank covering
approximately 7.43 million sq. ft. of Developable Area in Colombo, Sri Lanka for a
proposed residential project consisting of apartment complexes and independent
villas and townhouses. They are also have a sales and marketing office in the
United Arab Emirates and Saudi Arabia Our Promoter commenced operations in
the real estate industry in Mumbai in 1975 and has over 38 years of experience in
the property development, real estate and construction sectors in India.
Puravankara projects ltd luxury and premium real estate projects are
branded under the “Purva” brand and our premium affordable housing projects are
branded under the “Provident” brand. We believe that our brand gives us a
competitive advantage that allows us to achieve premium sales prices and rentals.

31. Page | 31
Our brand also helps us to secure land in prime locations and attract well regarded
professionals and partners to collaborate with us on our projects. In addition, after
the completion of a project, we continue to focus on brand management through
our after-sales team to ensure brand recall among our customers and
recommendations through” word of mouth”.
Puravankara projects ltd premium affordable housing segment “Provident”
seeks to create mid-income and mass housing projects comprising affordable
apartments in response to the increasing demand for mid-income housing in India.
Our projects in this segment are aimed at first time home buyers. Provident
develops projects that have small and medium unit sizes of 850 sq. ft.to 1,360 sq.
ft. with amenities such as swimming pools, club houses and multi-purpose halls.
These projects are situated at the city centre, as well as in areas that are
located at relatively greater distances from the city centre but with developed
infrastructure such as connectivity through public transportation. they are able to
provide these projects to our customers within a specified price range, which is
more affordable than the housing we provide under the Puravankara brand, by
reducing the size of our residential units and by applying innovative construction
techniques and efficient designs that result in cost savings. With a large and
experienced team of engineers and technicians, the Group has a unique and large
in-house technologically advanced project management and construction capability.
This together with a host of India’s leading architects provides the organization with
an experience, capability and expertise unmatched in the Indian real estate
industry. Development activities range from modern designer apartments, through
ultra-modern and multi-functional integrated bungalow complexes, to plush and
very functional commercial complexes along with the capacity to build large
township with all modern amenities and other lifestyle facilities.
2.4 Vision & Philosophy
Vision
We envision a future wherein Puravankara is a household name the world-over. A
future wherein our brand symbolizes unique landmarks and superior community
living of the highest standards of quality and customer delight.
Philosophy
At Puravankara, all our endeavours revolve around just one entity – our customers.
Their need, dreams and aspirations are pivotal to our decisions. We call this “The
You Philosophy”.

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2.3 Board of directors and management
Ravi Puravankara
(Founder, Chairman and Managing Director)
Ravi Puravankara is the promoter of the Puravankara Group. He
has been in the real estate sector since 1975. Fuelled by his
vision, the Group has established sizeable presence across
India, Sri Lanka and the UAE. Ravi was the President of the
International Real Estate Federation (FIABCI), Indian Chapter,
and Paris and received a ‘Lifetime Achievement’ Award at the
Realty plus Excellence Awards 2012.
Ashish Puravankara
(Joint Managing Director)
Ashish Puravankara received his Bachelor’s degree in Business
Administration from Virginia State University and Master’s
degree in Business Administration from Willamette University in
Oregon, USA. Ashish is responsible for establishing Provident
Housing Ltd. and is instrumental in implementing industry-best
practices with a focus on reducing project delivery time.
Nani R. Choksey
(Deputy Managing Director)
Nani Choksey has over 37 years of experience in real estate
development, construction and finance sectors. He has been
with the Puravankara Group since its inception in 1975, as a
Founder Director, and has played a pivotal role in the
Company’s growth.
Jackbastian K.Nazareth
(Group Chief Executive Officer)
Jackbastian Nazareth is an industry veteran with over 23 years
of experience in real estate development, corporate affairs,
financial management and civil engineering consultancy. He is
instrumental in sitting up benchmark practices in customer
relationship management and brand building, Jack received his
Bachelor’s degree in civil engineering from Karnataka university
and MBA from the Goa institute of management
R.V.S rao
(Independent Director)
R.V.S Rao has over 40 years of experience in the fields of
banking and finance. As a USAID consultant, he led the team
that reviewed operations and made recommendations for
Housing Finance Company, Ghana. He also led the consultancy
team which advised the National Development Bank of Sri
Lanka on the establishment of its mortgage finance business

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Vasudevan Madhu
(Managing Director, President Housing Limited)
V.Madhu is an I.A.S. (Retd) officer with 33 years of work
Experience with the Karnataka government. He has held
several prestigious positions including principal secretary
infrastructure development, principal secretary revenue
Department, managing director Bangalore metro and cabinet
secretariat, Rastrapathi Bhavan, among others. His academic
track record includes a first-rank in B.Sc. (chemistry) and a gold
medal in M.Sc. (chemistry)
Anil Kumar .A
(Chief financial officer, puravankara projects ltd)
Anil Kumar has over 20 years of experience across a gamut of
functions including treasury, finance, accounts, audit,
investments and capital market operations both domestic and
overseas. He has been in the real estate ector for nearly a
decade. Anil is a qualified chartered accountant, company
secretary and a certified public accountant from the US. He
received his Bachelor of commerce Degree from Bangalore
University
Anup Shah
(Independent Director)
Anup Shah received his bachelor’s degree in commerce from
HR College in Mumbai and bachelor’s degree in law from
Government Law College, Mumbai. He has over 32 years of
experience in the legal field with expertise in commercial and
property due diligence, corporate and commercial litigation and
property-related matters. He is the renowned columnist of ‘Legal
Eagle’, a weekly feature in The Times of India, Bangalore
R.V.S rao
(Independent Director)
R.V.S Rao has over 40 years of experience in the fields of
banking and finance. As a USAID consultant, he led the team
that reviewed operations and made recommendations for
Housing Finance Company, Ghana. He also led the consultancy
team which advised the National Development Bank of Sri
Lanka on the establishment of its mortgage finance business
Pradeep Guha
(Independent Director)
Pradeep Guha received his BA from Mumbai University and
management diploma from the Asian Institute of Management, Manila.
He has over 37 years of experience in the fields of media, advertising,
marketing and branding. He has been associated with the print media
for 29 years and was President of The Times of India Group and
served on its Board of Directors. He is the Vice-President and Area
Director of International Advertising Association, Asia Pacific region

34. Page | 34
2.5 Puravankara key business drivers
Key drivers Description
Land bank
Over 81.57 mn sq. ft developable area of land across
strategic pockets of India with a low historical FSI
cost of land at ₹119 per sq. ft.
Brand
Strong recall of our brands, Puravankara and
Provident which symbolise trust, customer service,
quality and luxury.68
Diversified
Leadership presence in India’s ‘premium affordable’
housing segment through our 100%-subsidiary
Provident. Offering internal and third party
construction and developmental services in real
estate through our 100%-subsidiary, Star worth
Infrastructure and Construction.
Geographical spread
Evolved rapidly from a local to a regional to an
increasingly national developer.
Robust quality practices
ISO 9001:2000 certified, meeting international quality
benchmarks and embracing stringent processes
across the value chain to ensure tight control on
quality standards.
Cutting-edge technology
Ownership of a fleet of construction equipment
including heavy earth moving machines, concreting
plants, road equipment, quarry equipment,
transportation equipment, fabrication and erection
plants
Human resources
Senior management team possesses a collective
experience of 194 person-years in the real estate
sector. The state-of-the art uravankara Academy of
Excellence mandates two person-days of training to
each employee every year and endeavours to
rejuvenate the intellectual capital of the Company.
Balance sheet strength
Optimum net debt-equity ratio of 0.81(as on 31
March 2013) with a networth of ₹1,900 cr (31 March
2013), cash and bank balances of ₹227 cr (31 March
2013) and ROCE growth of 205 bps to12.96% (31
March 2013).

35. Page | 35
2.6 Puravankara projects at glance
Sn
o Project name Status/completion
Project
Type Location
1. Purva atria On-going Residential Bangalore
2. Purva atria platina On-going Residential Bangalore
3. Purva high crest On-going Residential Bangalore
4. Purva highland Ready for possession Residential Bangalore
5. Purva midtown On-going Residential Bangalore
6. Purva season On-going Residential Bangalore
7. Purva skydale Launched Residential Bangalore
8. Purva skywood On-going Residential Bangalore
9. Purva sunflower On-going Residential Bangalore
10. Purva venezia Ready for possession Residential Bangalore
11. Purva westend On-going Residential Bangalore
12. Purva Whitehall On-going Residential Bangalore
13. Purva grande Ready for possession Residential Bangalore
14. Coronation square On-going Residential Bangalore
15. Purva palm beach Pre-launched Residential Bangalore
16. Purva blue mount On-going Residential Coimbatore
17. Purva amaiti On-going Residential Coimbatore
18. Purva swanlake On-going Residential Chennai
19. Purva windermere On-going Residential Chennai
20. Sky condos series-1 On-going Residential Chennai
21. Purva eternity On-going Residential Kochi
22. Purva grandbay On-going Residential Kochi
23. Purva moonreach On-going Residential Kochi
24. Purva oceana On-going Residential Kochi
25. Purva fountain
square
Ready for possession Residential Bangalore
26. Purva jade Ready for possession Residential Chennai
27. Purva vantage Ready for possession Residential Bangalore
28. Purva iris Ready for possession Residential Bangalore
29. Purva heights Ready for possession Residential Bangalore

36. Page | 36
30. Purva carnation Ready for possession Residential Bangalore
31. Purva pavilion Ready for possession Residential Bangalore
32. Purva Fairmont Ready for possession Residential Bangalore
33. Purva nest Ready for possession Residential Bangalore
34. Whitefield
Bougainville
Ready for possession Residential bangalore
34. Purva park Ready for possession Residential Bangalore
35. Purva paradise Ready for possession Residential Bangalore
36. Castlemaine Ready for possession Residential Bangalore
37. Purva riviera Ready for possession Residential Bangalore
38. Purva graces Ready for possession Residential Bangalore
39. Purva primus Ready for possession Commercial Chennai
40. Purva gainz Ready for possession Commercial Bangalore
2.7 Awards and Recognition:
Year Description
1998 Finalist, international Prix d' Excellence for Purva Park
1998 PA1 CRISIL Rating for Purva Graces & Purva Heights
1998 - Finalist, international Prix d' Excellence for Purva
Park.
2008 Excellence in financial reporting award by the Institute of
Chartered Accountants of India (ICAI), for the year ended
31 March 2008.
2010
Best Urban Design & Master Planning award for Purva
Fountain square at the Construction Source Felicitation
Award Ceremony, 2010.

37. Page | 37
2011 Developer of the year award: Residential - Popular
Choice at Realty Plus Excellence Awards 2012.
2011 Pathfinders Award for the Most Enterprising CXO for Mr.
Jack Bastian K Nazareth at Realty Plus Excellence
Awards 2012
2011 Residential Lifetime Achievers’ Award for Outstanding
Contribution to Real Estate Sector for Mr. Ravi
Puravankara at Realty Plus Awards 2012
2012 Mid-Range Housing project of the year award for Purva
Venezia at Bangalore Real Estate Awards 2012.
2013 Enterprising CEO of the year for Jackbastian Nazareth at
the ET Now Awards for Retail Excellence.
2013 Most Admired Upcoming Project of the Year at the ET
Now Awards for Retail Excellence.
2013 Young Achiever’s Award for Ashish Puravankara at
the ET Now Awards for Retail Excellence.
2013 Popular Choice - Affordable Housing of the Year for
Purva Welworth city at the ET Now Awards for Retail
Excellence.
2013 Environment Friendly Project of the Year (Residential) for
Purva Highland at the ET Now Awards for Retail
Excellence.

38. Page | 38
3.1 General Introduction
In today’s dynamic and competitive environment, every business
depends on the acceptance of the customers. Customers have numerous
choices to make the final decision and they are heavily influencing the
companies in regard to the product price, quality and sizes. Among the different
marketing communication tools, companies are giving attention to the sales
promotion to attract the customers. Therefore, the aim of this research paper is
to determine the impact of sales promotion on the consumer home buying
behaviour.
3.1.1 Sales promotions strategies:-
Sales promotion strategy as marketing activity specific to a group of customers, a
particular place and/or time bound, which encourages an immediate or direct
response from customer by offering additional valuable benefits. It highlights the
concept of the commitment that every supplier expects from its customers. In order
to cater the need of making the repeat purchase possible, the companies develop
extensive marketing programs to retain and motivate the buying behaviour of the
customers.
There are many ways to promote the sales. Sales promotion can be targeted at the
wholesaler, retailer or even at times the end customer. There are various methods
that are used. There are many strategies built around the philosophy of moving the
products through. There are many strategies that are widely used to boost the
sales.
Promotional campaigns are a series of activities built around a specific theme for
the purpose of reaching the advertisers objectives. Examples of promotional events
are the local parade of homes, annual community activities such as rodeos, etc.,
and broker-initiated events.
Digital marketing is marketing that makes use of electronic devices (computers)
such as personal computers, smartphones, cell phones, tablets and game
consoles to engage with stakeholders. Digital marketing applies technologies or
platforms such as websites, e-mail, apps (classic and mobile) and social
networks. Social Media Marketing is a component of digital marketing. Many
organisations use a combination of traditional and digital marketing channels.
In pull digital marketing, the consumer actively seeks the marketing content, often
via web searches or opening an email, message or web feed Websites, blogs and

39. Page | 39
streaming media (audio and video) are examples of pull digital marketing.
n push digital marketing the marketer sends a message without the recipient
actively seeking the content, such as display advertising on websites and news blog
Email, text messaging and web feeds can also be classed as push digital marketing
when the recipient has not actively sought the marketing message.
The Property expo Show innovative event geared towards consumers,
professionals and investors alike. The aim of property expo shows to provide you
with valuable knowledge about the latest offerings in real estate, commercial real
estate and property investment.
The act of marketing goods or services to potential customers over the telephone.
Telemarketing may either by carried out by telemarketers, or increasingly, by
automated telephone calls or "rob calls." The intrusive nature of telemarketing, as
well as reports of scams and fraud perpetrated over the telephone, has spurred a
growing backlash against this direct marketing practice.
3.2 Statement of problem:-
The project is about study on “impact of real estate sales promotions strategies
on home buying behaviour”
Sales promotions strategies carried out by the real estate developers to develop,
promote and distribute their product.
The research is tells about how to effectively promote a product, various type sales
promotional strategies used for selling the product. Which type of sales promotion
strategy effectively gets contact with customer and its impact on customer home
buying behaviour,
3.3 Objectives of research:-
 To understand the impacts of promotional strategies on home buying
behaviour.
 To identify the forms of promotions most frequently used in real estate.
 To know the pros and cons of promotional strategies.
 To create a platform for future research in this area.
3.4 Scope of study:-
 Giving clear view of current real estate scenario in India.
 To enable clear understanding of which type sales promotion strategy shows
more impact on home buying behaviour.

40. Page | 40
 To provide information regarding to how sales promotion strategies creates
impacts on the buying behaviour (for example by creating awareness
regarding to the product etc.).
 To enable information regarding pros and cons of the sales promotions
strategies.
3.4 Research Methodology:-
The research methodologies are using primary data collection and secondary data
collection. Here primary data collection is performing through questionnaire. A
sample size of 100 customers is taken randomly. The sample is limited to the
customers of puravamkara projects limited.
The sample is collected by approaching respondents personally. The sampling
chosen is a random sampling so that every respondent has equal chance to
respond.
The collected data is in the form of questionnaires is then processed and the
analysis is done so that we can suggest improvements based on findings.
3.5 Sampling Design:-
 Sample size
Sample size taken to conduct the research is 100
 Sampling Method
The sampling method used to conduct the research is SIMPLE RANDOM
SAMPLING which helps all units from the sampling frame have an equal
chance to be drawn and to occur in the sample.
 Sample frame
As we have selected simple random sampling the researcher had the
freedom to select the sample randomly where there is equal chance for
every sample to be taken and includes only the customers at puravankra
projects limited.
 Sample unit
The sample unit considered here are the people who visit the puravankara
projects ltd.
3.6 DATA COLLECTION DESIGN
PRIMARY DATA
Primary data is collected using a random sampling technique and with the help of
questionnaire. The data is collected personally by approaching the respondents.

41. Page | 41
Secondary data
Secondary data is collected through the past records, and from different websites.
3.7 Questionnaire design:-
The questionnaire is prepared by researcher using,
 Open ended questions,
 Closed ended questions,
 Dichotomous questions.
3.8 Limitations of study:-
 The study is limited only to the customers of puravankara projects ltd located
in ulsoor road.
 As the analysis is based on the responses given by the individuals, the study
may not always be reliable.
 Sample size of the study is limited to 100.
 Time boundary.