111106163 real-estate

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SUMMER TRAINING REPORT SUBMITTED TOWARDS THE
PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN
INTERNATIONAL BUSINESS
Investors Perception
in Real Estate
SUBMITTED BY:
Ritika Honey Lal__
MBA-IB (2010-2012)
Roll No. : A1802010213

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INDUSTRY GUIDE FACULTY GUIDE
Mr. Satender Chauhan Prof, (Dr.) Ajit Mittal
_Manager_
AMITY INTERNATIONAL BUSINESS
SCHOOL, NOIDA
AMITY UNIVERSITY – UTTAR PRADESH
CERTIFICATE OF ORIGIN
This is to certify that Ms.Ritika Honey Lal, a student of Post Graduate
Degree in International Business and Finance , Amity International Business
School, Noida has worked in the Finance department, under the able
guidance and supervision of Mr.Satender Chauhan, Manager, Good Living
Consultants Pvt Ltd..
The period for which she was on training was for 8 weeks, starting from 9th
May 2011 to 9th July 2011. This Summer Internship report has the requisite
standard for the partial fulfillment the Post Graduate Degree in International
Business. To the best of our knowledge no part of this report has been
reproduced from any other report and the contents are based on original
research.

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Prof.(Dr.) Ajit Mittal Ritika Honey Lal
(Faculty Guide) (Student)

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ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr.Satender Chauhan, Manager,
Good Living Consultants Pvt Ltd., for his able guidance, continuous support and
cooperation throughout my project, without which the present work would not have been
possible.
I would also like to thank the entire team of Good Living Consultant Pvt Ltd., for the
constant support and help in the successful completion of my project.
Also, I am thankful to my faculty guide Prof. (Dr.) Ajit Mittal of my institute, for his
continued guidance and invaluable encouragement.
Signature
Ritika Honey Lal

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TABLE OF CONTENTS
(Research Based)
1. Executive Summary 6
2. Introduction 7
3. Research Methodology 12
 Objective
 Hypothesis
 Research Design
 Sample Size
 Limitations
4. Literature Review 15
5. Company Profile 22
6. Industry Profile 27
 Major Players of industry 28
 Factors that determine the Value of Real estate 30
 Areas of investment in real estate 33
 Reason for the success of real estate 36
 Trends in real estate industry 38
 Factors effecting decision of investment 40
7. Data Collection 42
 Primary
 Secondary
8. Finding and Analysis 44
9. Conclusion 53
10. Recommendations 55
11. Bibliography 56
12. Questionnaire 57
13. Case Study 59

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Executive Summary
The Indian economy is the second largest growing economy of the world and the Real
estate sector is one of the major contributors in the growth of the Indian economy. I have
undertaken this study to analyze the perception of the investor in the real estate sector and
also to identify the various reason contributing to the growth of the sector. The study is
based on the data collected both through primary sources such as questionnaires, personal
interviews and secondary sources like internet, journals, books and magazines. The
sample size taken for the study was of 75 respondents who were interviewed personally
and on telephonic interview.
The study also looks into the role of the government by way of different policies that
effect the investment decision of the investor.
A case study was made on Good Living Consultants Pvt Ltd. The case study is based on
the investment made by the company in Rajasthan. It overs the problems faced by the
company and the future prospect of that project.

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REAL ESTATE
Real estate means an immovable property, either commercial or residential which may
consist of a building or a structure. Real estate can be divided into 3 main categories:
 Commercial
 Residential
 Agricultural/Vacant Land
Real estate involves the purchase, sale, and development of land, residential and non-
residential buildings. The main players in the real estate market are the landlords,
developers, builders, real estate agents, tenants, buyers etc. The activities of the real
estate sector includes the housing and construction sectors.
Real estate is a 12$ billion (revenue) industry in India. There has been a rapid growth in
the industry in the past few years. It is one of the fastest growing sectors in India. The
housing sector has been growing at an average of 34% annually. In the residential sector,
a growing middle class is enjoying rising income levels. Combined with smaller
household sizes, this demographic change has boosted demand for more modern housing.
Real estate is not just about housing these days it has become a beneficial investment
option as real estate can be pledged as collateral to secure a loan. One can also earn rental
income from the real estate properties .Profits can be earned from real estate as a result of
appreciation of real estate property prices. This is known as capital gains from real estate.
In the commercial property segment, strong growth in the services sector Specially the IT
and BPO industry have led to greater demand for commercial space.
The importance of real estate sector, as a major player of nation’s growth, can be seen
from the fact that it is the second largest employer next only to agriculture. 5 % of the
country’s GDP is contributed by the housing sector. In the next three or four or five years
this contribution to the GDP is expected to rise to 6%
The real estate industry has significant linkages with several other sectors of the
economy. It consists of a collection of industrial and services sectors of the economy,

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such as construction (housing construction, as well as construction of commercial offices,
retail and industrial buildings, and infrastructure projects such as dams, roads and
bridges), brokerage services, real estate finance services (mortgage banking, real estate
investment), real estate operations, property management, architecture and design.
The relaxed FDI rules implemented by India in the recent years have invited more
foreign investors and real estate sector in India is seemingly the most lucrative ground at
present. Private equity players are considering big investments, banks are giving loans to
builders, and financial institutions are floating real estate funds. Indian property market is
immensely promising and most sought after for the purpose of investment.
Growth Potential
India is currently the second fastest-growing economy in the World. The Indian
construction industry has been playing a vital role in overall economic development of
the country, contributing 6% to GDP. In 2005, the sector generated around 31 million
jobs (of which only 1 million were generated by the organized sector).
Developments in the real estate sector are being influenced by the developments in the
Retail, hospitality and entertainment (e.g., hotels, Resorts, cinema theatres) industries,
economic services (e.g., hospitals, schools) and information technology (IT)-enabled
services (like call centers) etc. Also with the growing quantum of domestic and
international capital inflow, economic growth is likely to continue, and with it, the
demand for infrastructure to maintain and accelerate the performance. As a result, the
public sector has remained a big investor in this sector, given the acute shortage of
infrastructure in India compared to the requisite level required to achieve the next growth
target.
The Government of India proposes to achieve 9.0% GDP growth during the Eleventh
Plan period. To achieve growth of this scale, adequate infrastructure is the most basic
requirement. In order to overcome the current constraint of insufficient modern
infrastructure, the government is developing a program for infrastructure investment

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through both public and private sectors, and expects to more than double public
investments from 1.2% of GDP in FY07 to 2.8% by FY12. It is also partnering with
private companies on initiatives such as the ultra mega power projects and Golden
Quadrilateral project and Delhi Mumbai industrial Corridor.
Future Prospects on Real Estate Industry
The real estate market in India is yet in an emerging stage and the scope is simply
unlimited. It does not resemble a bubble that will burst. An unhindered growth for the
next twenty years is almost sure. This is because the outsourcing business in India is
growing at a rapid speed and this entails a huge demand for commercial buildings and
urban housing besides improvement in infrastructure. The organized retail market in
India is also accelerating with players like Wal-Mart, Bharti etc. looking forward to make
a mark, thus stepping up the demand for real estate.
The Government’s ambitious projects lined up for the Eleventh Plan period ,shows the
demand for construction is expected to grow by at least 8-9%, and 2.5 million
employment opportunities per annum are expected to be generated. Favorable
government policies for globalization and liberalization have put India on the fast track.
In fact, today India is the second, fastest-growing economy in the world, and is the centre
of attraction globally. With greater quantum of domestic and international capital flowing
into various sectors of the economy, growth is likely to continue. However, it has become
a necessity for India to modernize and expand its infrastructure not only to sustain, but to
benefit from the existing growth spree. Moreover, the government’s initiatives such as
the ultra mega power projects, Golden Quadrilateral project, have been of great support
for the sector. Moreover, increased investment outlay in the Eleventh plan, and higher
private investments, apart from the public-private partnership, would prove beneficial in
meeting the infrastructure needs of various segments of the economy.

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Government Policies
The government has taken various initiatives to improve the real estate sector. It has
made the policies for FDI in real estate very liberal. The new stand adopted by Indian
government regarding foreign direct investment (FDI) policies has encouraged an
increasing number of countries to invest in Indian Properties. The positive outlook of
Indian government is the key factor behind the sudden rise of the Indian Real Estate
sector. The Government of India in March 2005 amended existing norms to allow 100
per cent FDI in the construction business. This liberalization act cleared the path for
foreign investment to meet the demand into development of the commercial and
residential real estate sectors. It has also encouraged several large financial firms and
private equity funds to launch exclusive funds targeting the Indian real estate sector.
Until now, only Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) were
permitted to invest in the housing and the real estate sectors. Foreign investors other than
NRIs were allowed to invest only in development of integrated townships and settlements
either through a wholly owned subsidiary or through a joint venture company in India
along with a local partner. The minimum land area for development by foreign investors
is lowered from the earlier floor of 100 acres to 25 acres which has further made the real
estate sector lucrative in the eyes of the foreign investors.
The Government is also initiating various projects like the ultra mega power project,
Golden quadrilateral project and the Delhi Mumbai Industrial corridor.
.

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Research Methodology
Objective
 To identify the factors affecting the value of real estate.
 To identify the main areas of investment in Real estate.
 To identify the current trends in real estate.
 To identify the factors effecting decision of investing in real estate.
Hypothesis
1. Null Hypothesis: The disposable income is the main factor that drives the
investment decision in real estate.
Alternate Hypothesis : The disposable income is not the main factor for
investment decision in real estate
2. Null Hypothesis: Government Policies play a major role in Real estate
investment
Alternate Hypothesis : Government Policies does not effect the investment in
real estate.
Research Design
The data collected is Primary data and Secondary data which is quantitative data, which
was further analyzed in order to draw conclusions and suggestions.
Sample Sample
75 respondents were interviewed to conclude the result. The interview was taken face to
face and telephonically.

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Limitations
 Small sample size
The sample size was only 75 respondents which a very small size to base a
research and give conclusion about the whole sector.These respondents are not
sufficient enough to base our conclusion for the group of investors.
 Time bound research
The research was conducted in a short span of time.The responses of the
respondents may be affected by some particular situation prevailing at that
particular time. If the time duration would have been long it would have gien the
general idea or perception of the investors.
 Might get biased response
As discussed earlier that the sample size was small also considering that the
interview were conducted in a short span of time, there is high probability that the
respondents might have given biased responses.

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Literature Review
The real estate sector has become a major contributor of an economy’s growth. To
understand the significance of the sector and its implications there have been various
research on real estate industry both in India and abroad. The research are being
conducted to gain more knowledge about the various factors contributing to the growth of
the industry and also to analyze the factors which effect the decision of investment in the
sector. I have tried to study few such research papers to get a better idea about the current
scenario of the real estate sector.
Graeme Newell and Rajeev Kamineni in their research paper assessed the risk-adjusted
performance and portfolio diversification benefits for the real estate markets (office, retail
and residential) of New Delhi and Mumbai. The real estate markets were found to under-
perform the stock market in India over 1998– 2005, with most markets improving their
performance in more recent years, although there was some loss of portfolio
diversification benefits for office and residential real estate with stocks. Deregulation of
the capital markets and international investment in India is also likely to have a
significant impact on future FDI levels and the growth of real estate funds for real estate
investment in India. They also studied that offshoring in the cities like Delhi and Mumbai
has created huge demand for better infrastructure. This area of offshoring has significant
real estate investment issues; particularly concerning technology parks, access to Grade A
office space.
They have also concluded that deregulation of the Indian capital markets since 2004, and
less restrictive guidelines for foreign direct investment in real estate in India since
February 2005 have seen significant improvements in the real estate investment
environment in India for both local and international players. This has taken on increased
importance as India significantly expands its economic growth to potentially be the
world’s third largest economy by 2020, and international real estate investors seek global
investment opportunities; particularly in the emerging Asian real estate markets. The

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expected development of REITs in India in the next few years will also expand the real
estate investment opportunities available in India.
Vandna Singh and Komal (2009) in their research paper found that as the GDP
increases the real estate prices also increases because there is a high degree of Positive
correlation between the real estate prices and GDP. The Real estate prices also increases
with increase in the per capita income as there is high degree of positive correlation
between these two. The FDI into the country affects the real estate FDI and real estate
having a positive correlation leads to the boom in this sector. Increase in FDI from 2006
to march 2007 is 10%. Earlier it was 16% and now in 2008 it is 25%.
The interest rate also affects the real estate prices because it affects the lending and
borrowing by the investors. In residential segment, availability of easy home finance and
rising purchasing power has driven the growth. Builders are launching high-end, life style
residential products to cater to the growing bunch of high net worth individuals.
They suggested that due to high prices the lower income group is not able to purchase the
land, so govt. should take measures to protect the lower income group. The investors
should analyze the type of land in which they are going to invest and the potential
Returns from it. Due to lot of investment avenues in real estate in India, fraud cases are
also increasing day by day like in Delhi deconstruction of buildings. Thus careful
measures and laws should be enacted to deal with these types of situations.
Natalija stated that Advantage India: Real estate is one of the fastest growing sectors in
India. Market analysis pegs returns from realty in India at an average of 14% annually
with a tremendous upsurge in commercial real estate on account of the Indian BPO
boom. Lease rentals have been picking up steadily and there is a gaping demand for
quality infrastructure. A significant demand is also likely to be generated as the
outsourcing boom moves into the manufacturing sector. Further, the housing sector has
been growing at an average of 34% annually, while the hospitality industry witnessed a
growth of 10-15% last year.

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Jim Berry stated that the highest and best use analysis is another component of property
investment analysis, especially in the case of vacant land or deteriorated property that
needs to be redeveloped. Highest and best use is defined as the most profitable use at
which a site can be developed. Thus, highest and best use analysis is usually carried out
for land sites that are acquired for development purposes. A site’s highest and best use
will depend on a number of factors including site physical characteristics, its location,
make up and purchasing power of the population in its area of influence, competitive
projects in its area of influence, market conditions and prospects at the time of analysis,
and other factors. If the land site is zoned in an urban use, the highest and best use
analysis will focus on the feasibility and profitability of developing the alternative
allowable uses.
Future of Real estate in Indian Economy
Analyzing the current scenario there has been various researches forecasting the future of
the real estate industry. According to them the Real Estate potential in India is vast. The
market is expected to grow at 33% through 2005-2010 to US 50 billion as per Negandhi’s
(2007) estimates. Tremendous potential demand along with an improving regulatory
landscape, robust economic growth and gradually improving 27 corporate governance
standards of developers makes the real estate market in India over the next five years
highly sustainable. This strong potential demand is expected to result in an exponential
growth in development plans of real estate companies. According to Negandhi (2007),
development is expected to reach 16 billion square feet across all segments of the real
estate market by 2010 The plan ahead seems sustainable; however it would be unwise to
forget the experience of the 1985-93 boom/bust in real estate that has left industry players
nervous about when it might happen again. A paper by Kaiser (1997) examines the
possible causes and the periodicity of such major real estate cycles. The evidence
suggests that both periods of negative returns, (early 1930’s and early 1990’s) were
caused by excessive levels of new construction which caused an inflation spike in the
general level of prices, suggesting a 50- 60 year real estate bust cycle. The paper safely
concludes that India is not likely to witness another bust period for real estate in the

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next four decades.
The conclusions of Kaiser can be witnessed with the bullishness underlying in the
development proposed by the cumulative strength of the Indian developers. Historically,
Indian real estate companies have undertaken development of 1million- 3million square
feet of real estate annually. With strong growth in demand expected across segments of
real estate over the next few years, Desai & Rane (2006) estimate development plans of
real estate companies to rise to 20million- 30million square feet annually. To sustain
these growth levels, the flow of capital into the sector will be carried out through REITs.
REITs is the future of the Indian real estate market. It is expected to lend the much
needed liquidity to developers and allow them to take out their capital value off
ompleted projects for deployment in newer projects. REITs also serve as an effective
vehicle for broader participation by investors in the market.
However, without demand and latent capital adequacy, none of these plans will
materialize effectively for the players in this segment and a good chunk of their demand
and capital is expected in the form of Foreign Direct Investments. The paper by Henley
(2004) compares the performance of India and China in attracting foreign direct
investment (FDI). FDI statistics suggest that India's performance has been significantly
understated but India still falls behind for several reasons such as high tariff structure,
poor physical infrastructure, a regulatory system that is too often not business friendly
etc. Nonetheless, India has displaced USA as the second-most favored destination for
FDI in the world. ASSOCHAM’s (The Associated Chambers of Commerce and Industry
of India) study on Future of Real Estate Investment in India forecasts that of estimated
US$ 60 billion future market size of real estate business in India, the share of foreign
investments will be within the range of US$ 25-28 billion by 2010. The overseas
investments will also be finding larger space in Indian SEZs and increasing number of
shopping malls that will naturally fatten their share in real estate market. Indian real
estate sector is on boom and this is the right time to invest in property in India to reap the
highest rewards.

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In the research paper on Real estate investment trust by KASB securities limited in
Dec 2005 it came to light that since REIT allows indirect investment in real estate for
small investors who otherwise could have not had this opportunity. And that it is one of
the vehicles that have single taxation and it also offer low volatility and ease of
liquidity.it was suggested that REITs listed under NBFC should be allowed to invest in
real estate development and acquisition. Exposure limits needed redefinition with respect
to a REIT, REITs should be allowed to borrow.
Regarding Modifications to Income Tax Ordinance it was suggested that
· Gains from sale proceeds of land and or building to a REIT should be tax free;
· REITs should be granted a status of investment scheme formed under NBFC Rules as a
result of which it would be tax exempted.
Changes in Voluntary Pension Rules suggested that Under Voluntary Pension Rules,
pension funds should be allowed to invest in REITs.
Various other recommendations included
 The Land Record System should be computerized
 Tenancy Laws should be strengthened and should be classified as criminal law for
settlement of disputes efficiently for property formed under REIT structure
 Transaction costs should be reduced
 Buyers of property from REITs should not be asked source of income;
Though the above recommendations were made however, it was concluded that the
markets will not function smoothly unless the rental yields improve, tenancy laws are
strengthened, official and unofficial pricing issue is settled, paghri system is abolished,
and the time consumed in legal proceedings is reduced.
The ups and down of Real Estate Markets
Dirk Brounen in Dec 2008 said that the Real estate markets around the world have
earned a complicated reputation. On the one hand, real estate markets offer investors a
wide spectrum of profitable investments opportunities, investments that nowadays can be
executed by simply buying shares of stock listed by real estate investment companies. In

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the first half of this inaugural address, the boom of these real estate stocks is discussed. In
less than three decades, the listed real estate market developed into a sector with almost
400 listed firms worldwide, representing a sum aggregate market capitalization of around
one trillion dollars by the end of 2007. Three relevant lessons regarding these
international real estate stocks are discussed in the first fifteen pages of this booklet,
lessons offered by real estate research from the Rotterdam School of Management. On
the other hand, real estate markets are notorious for attracting entrepreneurs with bad
intentions, seeking for opportunities to circumvent the strong arm of the law. These
activities have yielded many headlines in the daily press and have given real estate a
gloomy reputation. The dynamics of foreclosure auction of homes is an example of a
source of negative headlines, stressing that the suboptimal organization of these auctions
prohibits distressed sellers from earning a fair price for their home. In the second part of
this address, I focus on an empirical test of the matter. By analyzing over 700 auctioned
homes the dynamics of the auction system is discussed objectively. This offers a fair
view on the problems at hand and searches for way to improve the system in the near
future.

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GOOD LIVING CONSULATNTS PVT LTD.
GOOD LIVING CONSULTANTS Pvt. Ltd is a real estate Building and consulting
company formed in 1994.Its registered office is in south extension Part-II .It started
business with few small contracts in different regions of Delhi & ncr .In the later years
the company started working at larger scale and took up the work of building and
development of Group Housing Projects.
Cosmos Group Housing CGHS was an initiative of Good Living Consultants Pvt Ltd. It
was the was the very first residential project in dwarka. It gave Good Living the first
movers advantage. The company benefited a lot from this project. It build 175 flats under
this project. All 2bhk apartment with all modern facilities.
The flats were completed and allotted was made to the members in the year 1999.
It was one of the most successful project undertaken by the company till date.
After the completion of Cosmos the company undertook another project in the same area
i.e. dwarka by the name of Manglik CGHS.
This project had 112 flats in the category of 2bhk and 3bhk.
The project was completed in the year 2003.
Apart from the residential projects that Good Living was making in various regions of
Delhi and NCR it was also investing in Commercial Properties. It bought a commercial
complex in Rajnagar extension; Ghaziabad. Where the company constructed 20 shops
including halls and office space.
In the later years the company made another investment yet again in the Dwarka region
where it build 238 flats including 2bhk, 3bhk,4bhk apartments in the name of Naval
Technical Officers CGHS.

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With over a decade of experience in real estate construction & development, the company
has built over 10 Housing projects. The Company is behind the development of numerous
group housing projects in the dwarka.
Apart from working in Delhi and Ncr the company has now taken up project in
Rajasthan. It’s currently working on a housing project in shahjahanpur in Alwar district
Rajasthan. The project is build under a land area of 3375 sq. m It has 54 Apartments with
a flat area of 1077 sq ft.
The company bought this land in an auction in 2005 which was conducted by RIICO. The
land was sold by the government at subsidized rates. In the same auction Good Living
bought a commercial property with a Plot size 4789sq. m. near to 1 acre. It is planning to
build a Hotel.
SWOT of Good Living Consultants Pvt Ltd.
Strength
 Dynamic leadership of the Chairman Mr. Shri Chand Chauhan.
Mr.Chauhan is the pillar of the organization, under his guidance the company has
reached from a level of builder to a developer in the industry. It’s his hard work
and guidance which has brought the company to the position where it stand today.
The company will go a long way with such a dedicated and passionate person.
 Good Living has large number of assets in the form of Residential properties
and commercial properties in Delhi and NCR.
The company has bought various projects in and around Delhi and is working
towards developing them. It has expanded its base from Delhi and NCR to
Rajasthan. The company is taking various initiatives in the field.

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 It has Goodwill in the industry
Good Living Consultant has Goodwill in the industry. Being an initiator of
investment in dwarka region it has created its image in the industry among the
competitors.
Weakness
 Liquidity Problem
The company is facing liquidity problem as it has invested in Shahjahanpur where
it is incurring losses currently as it has not been able to book any flats till date.
This is creating liquidity problem in the company
 Website
The company does not have a proper website in place. If it has a website it would
be able to explore more opportunities. It will be able to show its presence even
online.
 Lack of good Policies
The company does not have good policies relating to marketing strategies. It
should also have a research department in place. The company has incurred losses
due to lack of research like one such major problem was faced while investing in
Shahjahanpur.
Opportunities
 DMIC
The biggest opportunity that the company has is for it shahjahanpur project. The
area has come under the proposed area for development under Delhi Mumbai
Industrial corridor. It can earn huge profits from this project and benefit in the
long run.

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 Expanding Base
The company has an opportunity as it can explore new areas where it has not yet
reached out. The company is currently working in Delhi, Ncr and Rajasthan. It
can reach out to other states and increase its current base.
 Diversification
The company can diversify its business. It can work in other areas like retail and
expand its business. It can also enter into its related fields.
Threats
 Threat from the competitor
The company has threat from its competitors who have brand name in the
industry. Good Living is not yet a brand and so it faces problems from the top
shots of the industry.
 Recession
The world faced lot of problems due to recession where the main problem was
actually the real estate industry, though India did well at that time but still if
recession could hit the country in such a bad way it could also affect Indian real
estate industry.

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Top Players of Real estate industry
o DLF: DLF’s chief business is to develop housing, marketable and retail
properties. Currently it has undertaken the development of 70 million sq ft of
housing projects which it intends to finish in the next three years. DLF has
joined hands with Delhi Development Authority to develop townships in
Amritsar, Pune, Gurgaon, Mumbai, Chennai and Goa. DLF has been the
construction company behind different malls in the major cities in India. The
company is also developing 50-75 hotels along with Hilton Hotels and
infrastructure and SEZ in India in collaboration with Laing O’Rourke
(UK).The current market cap is around Rs.51,832.22 crore.
o Tata Projects: Tata Projects registered an annual turnover of Rs 2,300 crore
on July 1, 2007. With more than 1,500 professionals the company has
emerged as one of the chief player in EPC projects. Over the last four years,
it has attained a CAGR of 50 per cent which quadrupled its annual turnover
of 2006-07. Tata Projects functions in concentrated divisions like broadcast
and distribution, steel, power production, oil, gas and hydrocarbons and
industrial infrastructure.
o Omaxe : Omaxe has successfully executed more than one hundred and
twenty industrial, institutional, commercial and residential projects for a
number of prestigious Indian private, public sector and Multinational's
clients such as Amity University, LG, Pepsi, Samsung, Wave Cinemas,
National Brain Research Centre, P.G.I. M.E.R, Apollo Hospitals and Delhi
High Court.
o Shapoorji Pallonji & Co: The Company has more than 3,500 professionals
working for it and is largely driven by its loyalty to consumer satisfaction.
Some of the major projects undertaken by Shapoorji Pallonji & Co are World

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Trade Centre, Mumbai; TELCO industrial complex, Pune; Bhabha Atomic
Research Centre, Kalpakkam; HSBC Bank, Mumbai; Hotel Taj
Intercontinental, Mumbai; Bank of India, Mumbai; Indira Gandhi
International Airport, New Delhi, etc. the company has created magnum
opus of construction and has been a consistent executer of challenging
projects.
o Unitech: Recently Ramesh Chandra, Unitech’s Chairman has declared the
investment of $ 720 million by his company in the coming four years to
develop 28 hotels along with Marriott International. The market
capitalisation of the company is Rs.16,867.40 crore.Its chief activities
include construction, expansion of real-estate, consultancy in associated
sectors, hotels, electrical broadcast and information technology.
o India Bulls Real Estate: One of India’s largest listed developers developing
residential and commercial real estate. Being a focused regional player, more
than 90% of IBREL’s portfolio by value is in the three major markets of
Mumbai, NCR and Chennai. Established in 2000, the company has grown
into one of the leading Indian business houses with its companies being
listed on Indian and overseas financial markets having a combined net worth
in excess of Rs. 18,000 crores. the current market cap being Rs.6,545.17
crore.
o HDIL: Ranked as India’s fastest growing real estate company by
Construction World-NICMAR in October 2007 & with a current market cap
of Rs.8,567.76 crore, Housing Development & Infrastructure Limited has
established itself as one of India’s premier real estate development
companies, with significant operations in the Mumbai Metropolitan Region.
HDIL is a public listed real estate company in India with shares traded on the

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BSE & NSE Stock Exchanges. With operations spanning every aspect of the
real estate business, from residential apartment complexes to towers &
townships, commercial premium office spaces and retail projects like world-
class shopping malls. it is India’s largest slum rehabilitation company, & was
given the Mumbai International Airport Slum Rehabilitation project in
October 2007,one of the largest urban rehabilitation projects in India.
.
o Emaarr-MGF: One of the world’s leading real estate developers company
in India and Development of properties in the residential flats, Commercial
Properties, premium apartments etc. The ‘Commonwealth Games Village
builder’ is still trying to get listed on NSE. Currently not listed.
Factors determining the value of real estate
Demand
Demand refers to people’s willingness and ability to buy or rent a given property. In part
demand stems from a market area’s base. In most real estate markets, the source of
buying power comes from jobs. Property values follow an upward path when
employment is increasing. The real estate market in India has seen remarkable changes in
the past few years. The rapid expansions of information technology, especially BPOs,
spurt in the middle class income and 8% growth in GDP are the potential key factors for
the growth.
India is the 4th largest economy in the world, and has the 2nd highest GDP among the
Developing countries based on purchasing power parity. IT and IT enable services sector
in India is still in its growing stage due to increasing demand for business processing
units in India and is estimated to grow by 107% to $583 million in revenue. This could

31
lead to a space requirement of 20-25 million sq. ft. per annum, according to a Merrill
Lynch report. Taking this factor into consideration, the Total value of real estate created
by the IT and ITES sector in the next three years will be Rs.132000.
Supply Analysis
Supply analysis means sizing up the competition. Nobody wants to pay more for a
property than the price they can pay for competing property. An integral part of value
analysis requires identifying sources of potential competition and then 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
priced single family houses might compete with condominium units, manufactured
homes and even with rental apartments.
The Property
In real estate the property itself is also a key ingredient. The price that people will pay is
governed by their needs and the relative prices of the properties available to meet those
needs. To try to develop a property’s competitive edge, an investor should consider five
things:
1. Restrictions on use
2. Location
3. Site characteristics
4. Improvements
5. Property management
Rental Trends in India
Recent trends of rental properties in India are conspicuous by the immense potential that
is being realized today. Rental values in cities like Delhi and outskirts are witnessing an

32
increase of 20-25%. Real estate agents are devoting themselves to negotiations for rented
homes than ever. Though the interest rates on home loans, continued tax exemptions on
such prompts people to buy property, those with the ability to buy a flat among the
middle-class are thinking twice.
In residential segment, the capital value or cost of flats has almost doubled in cities like
Gurgaon where prices went up to Rs. 45 lakh from Rs. 15 lakh a couple of years back.
The demand for more capital appreciation in the wake of rising prices coupled with home
loan rate hike has dampened the buying spirit. This has in ways propelled demand for
rental property in India. Increased demand for independent houses or paying guests
occurs mainly in the metros like Delhi, Gurgaon, and Mumbai etc. where the corporate
sectors rent independent houses for their senior executives. A paying guest or PG
accommodation in India is a convenient arrangement. Even PG hostels and working
Women’s hostels are considered safe and can be availed of on an individual or sharing
basis mean big business.
The real estate rental trends in commercial sector are momentous as the key tendency
among the investors is to rent a commercial space instead of buying. It will facilitate low
risk and less worry on maintenance. Commercial rentals including corporate office space,
BPO spaces, mall space, shops and showrooms are an integral part of the commercial
rentals in India. Buying good space in high quality development and leasing it to a good
brand is a wise investment decision. Usually, commercial lease agreements specify a 15%
escalation in the real estate rental in every three years which is a good enough yield. For
those considering regular rental returns rather than capital appreciation, mall space has
the distinction to be an excellent option. It gives returns higher than that received with
office space and much higher than the rental returns from residential space.

33
Major Areas of Investment in Real estate
Real estate Stocks and REIT
The passive investor would likely want to place investment funds into the stock market in
the form of equities of major national homebuilders. Or they might invest in a Real Estate
Investment Trust. This is a fund set up and managed to invest in stocks, bonds and
mortgage instruments in the real estate area. People find it a convenient and safe mode of
investment as small investors who do not have large funds to invest directly in real estate
property are able to benefit from the schemes as large number of small investors come
together and pool in their funds and invest them through people who have specialized
skills of investment. This option not just give small investors the benefit of enjoying the
income of real estate sector but also provide them with less risk as the risk gets distributes
among large number of investors and the amount is managed by fund managers. REIT
are such ways of investing
Mortgage Instruments
Discounted notes are another investment strategy. Sellers many times accept a mortgage
from a buyer, and after payments have been made for a while, they want to convert to
cash. They sell the note to an investor at a discount and the investor then gets payments
from the buyer.

34
Appreciation of the Market Value of Properties
This is the most widely known way of profiting in real estate. A property is purchased
and held. Over time, the value of the property appreciates, sometimes even faster than the
overall market. Certain areas of the country have experienced significant appreciation in
home values over the last ten years.
Rental Income from residential Property
This type of income is at a rise these days .As it gives an ease of earning regular income.
A person can invest in a property and purchase it and then can lend it on rent to tenants,
paying guest and earn handsome rent every month. It is becoming a trend in the
metropolitan cities as more and more people are coming to metropolitan cities in search
for work and when these people come to different cities to make a career and settle down
they live on rented accommodations, due to such reasons this has become a huge business
these days.
Investment in commercial properties
In today’s time commercial property are very expensive. The price is really high due to
increase in trade. Commercial properties are in demand and so investors find it as a
lucrative investment option. Be it a small investor who invest in a commercial property
like a small shop or big investors who invest in malls, technology parks etc. Every
investor can invest in these properties based on this level of investment. There is scope
for all types of investors.

35
Vacant Land
People purchase vacant land, few keep it as it is and sell it off when the prices increase.
Big developers purchase vacant land at discounted prices in auctions and then construct
huge apartments, villas, cities .and then sell these flats individually and earn large profits.
Some others build up amazement parks and earn from it. There are various ways in which
a person can earn from vacant land by converting it into different alternatives.

36
Major reasons for success of Real estate sector
Expansion and Development of the IT sector
Liberalization and Globalization has opened various avenues for investment. Number of
MNC’s have set up their base in India and have given way to the growth in the real-estate
sector especially in the commercial property sector. This has also provided better
employment opportunities to the people of India and thus helping in the overall growth of
the Indian economy and subsequently in the growth of the real estate. There are large
number of BPO’s and KPO’s that have set their base in India. These companies require
better infrastructure to match up with their work and so came up the concept of
Technology Park. This has not only benefited the real estate industry but other interlinked
industries as well effecting the India’s overall economic growth. We can see that as these
companies are increasing their presence so is the value of real estate .In the current time
they are one of the major contributors in the upliftment of the real estate sector.
Liberalized FDI Policy
The decision of the Indian Government to liberalize the FDI policy has bought a relief to
the foreign investors who can now invest up to 100 % in construction and housing
development. This has made investment in Indian real estate more lucrative. Since the
policies are being liberalized and restrictions are being removed India is becoming a
favored destination for investment purpose for the foreign investors. They prefer India as
it is a developing Nation, that too a one with one of the largest economies, these factors
when added to the relaxation of policy brings about more funds from outside India.
Thereby increasing not just the worth of the real estate sector but also contributing in the
growth of the economy. Some of the world’s famous builders are taking keen interest in
investing in the Indian real-estate market. Investment of foreign builders’ promises better

37
prospects in the Indian real estate industry in terms of regulatory policy, efficient
management, and the use of more advanced technology. This ensures that the Indian real
estate has a brighter future. . The minimum land area for development by foreign
investors is lowered from the earlier floor of 100 acres to 25 acres which has further
made the real estate sector lucrative in the eyes of the foreign investors.
Convenience in obtaining Bank Loan.
There are number of banks in India. Due to the presence of large number of both
nationalized and private banks competition has also increased. Competition is not just
between the Private Banks but even amongst the nationalized banks. To compete each
other these banks try and facilitate the customer to get the best of products and services.
In the recent years banks have been offering hassle free loans to the customer which has
increased the capacity of the investor to purchase real estate. So, buying a property is not
difficult even for those belonging to middle-class. Thus, it has enabled the overall growth
of the Indian real estate.
Growth of the Indian economy
The Indian economy is one of the fastest growing economies in the World. This has a
direct effect on the real estate sector as it is one of the largest sectors in the Indian
economy. Some of the major areas which have been greatly affected by the growth in
Indian economy are Delhi NCR, Mumbai, Hyderabad, Chennai, Bangalore, Pune and
Kolkata. This growth is observed in all forms of property such as commercial, residential
and industrial.

38
Trends in Real Estate
Janta Flats
Until few years people use to live in Flats which were distinguished as LIG, MIG and
HIG. The Low income Group Housed which was 1 bhk house, Middle income group flats
use to have 2 bhk house and High Income Group Houses were 3bhk houses. This trend
stayed for quite a long time and even today in few areas we can see LIG, MIG and HIG
Janta Flats made by the government.
Builder Flats
Then came a time when Builder made Flats became a range among people. People
preferred them as they were well furnished homes as compared to the previous Janta
Flats. Builders use to purchase vacant land or some existing old house deconstruct the old
building and reconstruct new flats with latest designs. These flats were build keeping in
mind the owners choice and preferences unlike those of Janta flats. Even today builder
Flats are being constructed majorly trying to develop the under developed regions.
Apartments
They were like Builder flats but had better facilities as compared to them. Apartments
had large number of flats in the building.
Co-operative Societies
This was a corporation wherein the corporation owned two or more residential building.
Each member of the cooperative housing society was given a house each. The member
needs to take the approval of the society before selling off the property to the third
person.
Penthouses

39
These are huge houses which cater to the needs of the upper class people. As space in
metropolitans are reducing because of increase in number of migrants the space required
for living and constructing individual houses has reduced drastically. So penthouses were
built which are really huge apartments.
Villas
They are individual houses build in a locality, they look like cottage type.
Cities
Big Builders are not just providing houses to live in but they are building up small cities
within few acres of land. The Cities are build in such a way that it consist of residential
flats, schools, hospitals, multiplex, malls, clubs all around the residential flats to bring the
life’s of people at ease. This is the latest trend in the real estate sector. Every Big builder/
developer are building their own cities as it not just provides them with onetime payment
but with regular income by way f various facilities being offered by them.
Green Houses
This is another new concept which is doing great business.As people have
become more conscious about going green, about saving our resources so as to
benefit from the in the future ,Customers are willing to pay more than the normal
market price if they are getting environment friendly alternatives . Solar panels
are used and all possible steps are taken to save our natural resources like
Efficiently using energy, water, and other resources, Protecting occupant health
and improving employee productivity, Reducing waste, pollution
and environmental degradation.

40
Factors effecting decision of investing in Real Estate
Price
The prevailing price of the real estate is a major factor that influences the investment
decision of the investor. Every buyer has his own capacity to purchase a property at
different prices. The prices of property may rise due to different factors. Some people
purchase property even when the prices are rising as they expect that the prices may
rise even further and then may have to regret. whereas some people avoid purchasing
when the prices rise as they wait for the prices to fall and purchase at lower prices.
Bank Rate
Bank rate is another important factor that determines the decision of the investor. The
investor would assess whether the investment that he is making is worth the interest
that he would be paying to take a loan for purchasing the property. He would assess it
based on the amount that he is expecting to earn from his investment. The Banks rate
fluctuate based on different policies that the government makes.
Location
The investor looks into the factors like the location of the property before investing
any money in the property. It is not just a deciding factor as to whether he should
purchase it or not but also helps in deciding how much is the investor willing to spend
on the property based on the location of the property. If a person is getting a Property
in some prime location he might not mind paying more than the market price but if
the location is not as per his satisfaction he will bargain to get the prices reduced.
Location preference is different for each investor as per his requirements and personal
choice.
Economies Condition
The situation prevailing in a country is another important factor. If the country is
going through a bad phase the investor would not invest at that time. A stable
economy is always a favored destination among the investors.

41
Government Policies
Government policies are one of the major factors that affect the decision of the
investors. Government policies relate to taxation policy, stamp duties and various
other things like FDI involvement etc.
This is an important factor while deciding. If the government policies keep changing
then people will be reluctant to invest in such an economy.
Disposable Income
The disposable income of a person is a major factor that determines his investment
decision. If a person has high disposable income he can invest in huge real estate
properties whereas if the disposable income is less then the investor might not be able
to invest in real estate directly and he may invest in REIT, equities of real estate
companies.

43
Data Collection
Primary Data
 Questionnaire
 Face to face interview
 Telephonic Interview
SecondaryData
 Internet
 Journals
 Books
 Magazines

45
Findings and Analysis
The findings and analysis are based on the survey done on prospective buyers. The
survey was conducted through the use of questionnaire. The following are the findings
and analysis of the survey.
1. Age group of Investors
The respondent of the survey were mostly in the age group of 36-
45 years i.e. 42%. Followed by the people in the age group of 45
years and above- 27%. 23% in age group of 26 to 35 years and the
least were people in the age group of 20 to 25 years. This shows
the type of sample that we are analyzing
8%
23%
42%
27%
Age Group of Investors
20 -25 years 26 - 35 years 36- 45 years 45 and above

46
2. Income Level
The above analysis shows that the people covered under the survey
mostly included people from the income group of 6-10 lakhs i.e.
39% , followed by people with income above 10 lakh- 33% and the
remaining were in the category of 3.5 to lakh and 2- 3.5 lakh
consisting of 22% and 6% respectively.
0
5
10
15
20
25
30
35
40
45
2 - 3.5 lakh 3.5 - 6 lakh 6- 10 lakh 10 lakh and
above
Income Level
Series1

47
3. Preferred Investment Option
The above findings show that Real estate is a favored investment
option among the respondent by 36% followed by equity, gold and
mutual funds by 34%, 18 % and 12 % respectively. This infers the
trust and the interest of the investors in Real estate sector. People
are willing to invest in real estate be it a large investor or small all
of them try to invest in real estate sector in the ways convenient to
them.
36%
34%
12%
18%
PreferredInvestment Option
Real estate Equity Mutual Funds Gold

48
4. Preferred investment in real estate
The above analysis shows that investors preferred investment
option is residential property by 38% .The next best option being
equity shares of real estate companies by 25% followed closely by
commercial property with 24% and the least investment is in REIT
with only 13 % respondents investing in it. This analysis clearly
shows that residential property is the most favored investment
option amongst the investors. The above analysis also shows that
people are not investing in REIT’s when asked the reason most the
people were not even aware about it.
38%
24%
13%
25%
PreferredReal estate Investment
Option
Residential Commercial REIT equity of real estate

49
5. Factors effecting real estate investment decisions
The major factor that effects the investment decision is the
Disposable Income of the investor .which constitutes 28% of the
respondents. The prevailing price of the properties is another
important factor it constitutes 22% of the respondents if the price is
too high people avoid purchasing the property and vice versa. Price
is the major determinant factor followed by Bank rate at 18 % as it
is very important for people who are opting for loans from the
banks ,as they need to assess whether the investment is worth
paying the interest on the loan or not. Then comes location at 17%
followed closely by Government policies holding 12% of the
respondents.These policies are regarding taxes, subsidies, stamp
duties , FDI and the like. Economies condition also effect around
3% respondents.
22%
18%
17%
3%
12%
28%
Factors effecting Investment
Price Bank Rate Location
Economies Condition Government Policies Disposable Income

50
6. Perception about effect of recession
To see the effect of recession on the minds of people I asked them
about what according to them was the effect of recession in the real
estate sector in india.31% respondents said that the projects were
delayed .22% said that people would have stopped purchasing as
the recession was effected mainly due to real estate sector and that
it has become a risky option to invest.20% people said that as
recession did not affect the Indian economy at large so it does not
affect their investment decision.19% felt that it was a good time to
purchase real estate properties.8% people felt that the cost should
have reduced .
8%
31%
22%
19%
20%
Perception of Buyers
Cost Decreased Projects Delayed Stop Purchasing
Good time to purchase No difference

51
7. Preferred time duration of investment
Around 34% people invested for a time period of 5-10 years ,
followed by 28% investing for a duration of 3-5 years.23% for
long term i.e. for more than 10 years and 15% invested for a time
duration of 1- 3 years. This analysis shows that people invest in
real estate for long term which is around 5-10 years.
15%
28%
34%
23%
Time Duration
1- 3 years 3-5 years 5-10 years more than 10 years

52
8. Better Future of Real estate
69% respondent feels that the Indian real estate industry has a
bright future and will increase in the coming days. Whereas 20 %
of the respondents feel the other way round. 11% respondents were
neutral about the issue and said that the situation will remain same
without any change.
Majority of the respondents are positive about the future of the real
estate industry.
69%
20%
11%
Better Future of Real estate
Yes No Neutral

53
Conclusion
As we are aware that India is one of the fastest growing economy in the world and the
real estate sector of India is one of the major contributor to the growth of the economy. It
is the second largest sector for employment opportunities after agriculture sector. . 5 % of
the country’s GDP is contributed by the housing sector.
From the above study we can infer that the main reason for the success of the Real estate
sector is the Growth of the economy as a whole. When the disposable income of the
investors increases they invest more in the real estate sector as they find it a lucrative
investment opportunity. Real estate is a favored investment option due to various efforts
that are being made by the government.
Government Policies are another major reason for the increase of investment in the real
estate sector. One of the most recent and effective policy change of government which
has bought an increase in the investment of real estate sector is the liberalized policy of
the government in relation to FDI in the real estate sector. As the government has allowed
100% FDI in the construction sector there are large numbers of foreign investors who are
investing in the Indian real estate industry. The governments rule where it has reduced
the minimum land area for development by foreign investors from the earlier floor of 100
acres to 25 acres which has further made the real estate sector lucrative in the eyes of the
foreign investors.
Foreign investors play a major role in the development of the real estate sector, whether
directly or indirectly. Direct FDI is an example, the other way is by the increase in the
number of MNC’s , there is requirement of better infrastructure facilities so when the
demand increases it benefits the industry.
The rental trend has also increased many folds in the recent years. People not just invest
in real estate for property appreciation but they also invest to earn regular income by way

54
of rent from the properties. Rental trend is on a rise people rent commercial and
residential properties. Paying Guest, hostels are also very common these days due to
large demand.
Real estate investment trust (REIT) is a good option available for small investors , who
can pool in their funds and invest in the real estate sector and also benefit from the skilled
knowledge of the fund managers who analyze the various pros and cons and then make
the investment decision for the investors in different funds of real estate market. After
speaking to the investors’ one of the conclusion that I came across was that though REIT
is a very good option for investing in the real estate sector but most of the people are not
able to utilize it as they are not aware about it. Government should take up steps to bring
awareness amongst the people about REIT.
Bank Loans are another important factor effecting the investors’ investment decision. The
govt should build such policies which make obtaining a loan for investment in real estate
a hassle free process; also to increase the investment in real estate the government should
keep the Bank rate low as it is one of the major drivers of investment in real estate sector.
The investor always assess whether the investment that he is making is worth the interest
that he will be paying to obtain a loan for such an investment.
The final conclusion that I can give from the above study is that there is great scope of
the real estate sector. It will grow in the near future and will be one of the major reason
for the growth for the Indian economy.

55
Recommendations
 The government should liberalize its policies regarding investment in real estate.
As we have seen in the above study that because of the governments initiative of
liberalizing the FDI policy relating to investment in Real estate sector there has
been huge investments being made by the foreign investors. So the government
should take such steps.
 The government should create awareness amongst the general public about REIT
as most of the people are not investing in it due to lack of awareness .It is a good
investment option but people are not benefiting from it as they are not aware
about it.
 The government should lower the interest rate as it is one of the major factors that
determine the investment decision of the investor. If the govt want to increase the
investment in the real estate sector then it will have to reduce the bank rates so
that it increases the money in the hands of people and they invest in real estate.
 Investors have high hopes from the real estate industry, even though they are
aware about the delays in the projects due to recession, Still they are positive
about the future prospect of the real estate industry.

56
Bibliography
www.makaan.com
www.magicbricks.com
www.ansalspropertiesltd.com
www.eros-group.com
www.eldecogroup.com
www.omaxe.com
www.parsvnath.com
www.ashianahousing.com
www.gurgaonproperties.net
www.realestatencr.com
www.gurgaonrealestate.com
www.estatedeveloper.com
www.bank bazaar.com
www. noradarealestate.com

57
QUESSIONNAIRE
1. Name :
2. Age :
3. Gender :
4. Income Level :
 2 lakh – 3.5 lakh
 3.5 to 6 lakh
 6 to 10 lakh
 10 lakh and above
5. What is your preferred investment option :
 Real estate
 Equity
 Mutual Funds
 Gold
6. Which option do you prefer while investing in Real estate :
 Residential Property
 Commercial Property
 Real estate investment trust
 Equity of real estate companies
7. Which is the most important factor that effect your real estate investment decision
 Price
 Bank Rate
 Location
 Economies Condition
 Govt Policies
8. What is your perception about the effect of recession in the real estate market in
India:

58
 Cost Decreased
 Projects Delayed
 Stop Purchasing
 Good time to purchase
 No Difference
9. What is your preferred time duration of Investment :
 1-3 years
 3-5 years
 5-10 years
 More than 10 years
9 Do you think India’s real estate market will Improve in future :
 Yes
 No
 Neutral

60
CASE STUDY
I have made this case study on the investment decision of Good Living Consultant Pvt
Ltd. Shahjahanpur Project in the Alwar district of Rajasthan.
In the year 2005 RIICO (Rajasthan State Industrial and Investment Corp) auctioned plots
in Shahjahanpur, near Neemrana, Alwar district Rajasthan. Good Living Consultants saw
that the area was under development and being close to Neemrana which was then being
developed as a favored tourist spot decided to invest in the area. There were many
reasons for Good Living to invest in the area.
Some of them are as follows:
Development of the area
The government was taking various initiatives to develop the area. Good Living found it
beneficial to invest at such a growing stage so that it would be able to reap profits in the
long run. They thought of purchasing the land at subsidized rates that were being offered
by the Govt as they knew that in the near future after the development process is
completed the company would earn huge profits from this investment.
Location
Being close to Neemrana fort which was becoming a favored tourist spot the company
thought that it would be a good option as the location will only improve in the future
when the development process is completed. As it was a tourist Spot in the nearby area of
Delhi and NCR and the value of the property would only increase. Moreover the location
being on national Highway 8 was always a favored location for investment purpose.

61
Subsidized Rate
The government was auctioning plots in the area at a subsidized rate. This was a
wonderful opportunity for the company to invest at this stage as the value of the property
would increase with the passage of time. The opportunity was such that one could not
resist investing in such an area .
First Movers Advantage
First mover’s advantage is the advantage that is gained by a company by initiating and
being the first one to occupy the market in a particular segment.
Good Living Consultants is a growing company; It is not always easy for a growing
company to face competition from the top shots of the industry. In the shahjahanpur
region Good Living saw the option of gaining the first movers advantage as no other
developer had yet set its base. Good Living wanted to gain the first movers advantage
from the Project and so they invested in the project. It was a great opportunity for Good
Living to create its Name in the industry by taking this first movers advantage and no
company at a growing stage would lose this opportunity. Good Living could also not
resist such a lucrative investment option. They had earlier benefited from such a situation
when they invested in dwarka region of Delhi.
Considering all the factors that were in favor of investment in shahjahanpur, Alwar
district, Rajasthan Good Living consultant bought a piece of Land from RIICO in the
auction for the purpose of making Residential Flats in the area. Land area 3375 sq.m
Flat area 1077 sq ft.
Good Living Consultants decided to make residential flats, 2bhk apartment’s .They saw
that there were not many flats in the area rather there was no such society in the nearby
are which had apartment style of Living. Good Living thought of gaining this advantage

62
and started the construction work expecting to close the booking in the initial phase of
construction.
Shahjahanpur Project
The proposed project had 54 Flats .All in the category of 2 Bhk. The company thought
that it would bring a revolution in the area as no such apartments were available in the
locality. The company aimed at making the project very successful by giving the best of
facilities
The features of the Project were:
 Structure:
Superior RCC frame earth quake resistant.
 Wall and Ceiling Finish :
POP in Ceiling in Drawing Rooms with dry distemper Finish
 Flooring :
Drawing room and bed room with designer vitrified tiles, and balcony and toilets
with antiskid tiles. Master Bedroom with wooden flooring.
 Doors and Windows :
Flush doors in all rooms, superior wooden frame for door and windows with
wardrobe in bedrooms.
 Kitchen :
Granite top with stainless steel sink and modular kitchen woodwork.
 Bathrooms :
CP fittings and one Indian and one EWC

63
 Electrical:
Modular switches with T.v and Telephone outlets in the rooms
 Staircase and common area :
With Kota stone and white marble or suitable floor tiles on the passage.
 Elevators in each block with power back up
 Round the clock security and intercom
 Fire fightning arrangements
 500 Watt power back up in each Block
Good Living Planned to give the best of features in the Project as these features
were very new for the local people.
A Rude Shock
The construction work had begun in the site but the company got a rude shock when even
after advertising about the project in the nearby area not even a single booking for the flat
was done. The construction work was in full force but unexpected things happened and
people did not show any interest in the project.
The company was offering the Flats initially at a price of 19 lakh but after seeing no
response it reduced the rice to around 16 lakh but all to no avail.
The company then took an initiative an offered financing option to the investors but still
all was to no avail.
The company had to then slow down the construction work as there were no bookings
and if the construction got completed without any booking then apart from the loss that
the company was incurring it will also start incurring the wear and tear cost.
The company ran into huge loss due to this project. The expected First Movers advantage
turned out to be a disadvantage. It gave the company a rude shock.

64
Analysis
The company then took an initiative and we visited the site to speak to the local residents
of the locality. After conducting the survey in the area we got to know that the major
reason for failure of the project was that the company saw all the benefits that it was
gaining out of the project but forgot to do the most important work which was research in
the area about the preference of the local people.
Resistant to change
From our finding we got to know that people in the nearby locality still prefer to live in
plotted houses rather than flats.
They are resistant to change. They are not comfortable with the flats style of living.They
do not prefer living in apartments.
Image of Builder Flats
Another important finding that we came across was that people had a misconception that
builder flats are not well constructed. People had this perception as they had not
experienced such style of living and believed what they heard from people around them.
They have a perception that builders do not use good quality products. They felt that they
would e cheated. They did not have any trust on such apartments
Recommendation and Suggestion
After analyzing the scenario in the area we concluded that
 The company should have conducted a thorough research in the area
before investing such a huge amount.
 They should have spoken to the residents so that would have made the
company aware about the thinking of the people.
 They should have also made people aware about the apartment style of
living , so that those people could have related to them

65
 The company should have been in touch with the localities , they should
have conducted some sessions were they went and meet the people so as
to win the trust of people.
 They should have taken the involvement of the people living around by
hiring people from the nearby localities so that people could have build
their trust.
Real estate nevera Loss
In the midst of all these problems came a ray of hope. The government has come up with
a project called as the DELHI MUMBAI INDUSTRIAL CORRIDOR. The project is
passing through shahjahanpur area which is bringing in development at a rapid speed.
The government is investing huge amounts in the area to develop it. This will benefit
Good Living Projects.
Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 90 billion
with the financial & technical aids from Japan, covering an overall length of 1483 KMs
between the political capital and the business capital of India, i.e. Delhi and Mumbai.
Government of India has announced establishing of the Multi-modal High Axle Load
Dedicated Freight Corridor (DFC) between Delhi and Mumbai, covering an overall
length of 1483 km and passing through the six States - U.P, NCR of Delhi, Haryana,
Rajasthan, Gujarat and Maharashtra, with end terminals at Dadri in the National Capital
Region of Delhi and Jawaharlal Nehru Port near Mumbai. Distribution of length of the
corridor indicates that Rajasthan (39%) and Gujarat (38%) together constitute 77% of the
total length of the alignment of freight corridor, followed by Haryana and Maharashtra
10% each and Uttar Pradesh and National Capital Region of Delhi 1.5 % of total length
each. This Dedicated Freight Corridor envisages a high-speed connectivity for High Axle
Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power
locomotives. The Delhi - Mumbai leg of the Golden Quadrilateral National Highway also
runs almost parallel to the Freight Corridor. This corridor will be equipped with an array
of infrastructure facilities such as power facilities, rail connectivity to ports en route etc.
Approximately 180 million people, 14 percent of the population, will be affected by the

66
corridor’s development.
This project incorporates Nine Mega Industrial zones of about 200-250 sq. km., high
speed freight line, three ports, and six air ports; a six-lane intersection-free expressway
connecting the country’s political and financial capitals and a 4000 MW power plant.
Several industrial estates and clusters, industrial hubs, with top-of-the-line infrastructure
would be developed along this corridor to attract more foreign investment. Funds for the
projects would come from the Indian government, Japanese loans, and investment by
Japanese firms and through Japan depository receipts issued by the Indian companies.
This high-speed connectivity between Delhi and Mumbai offers immense opportunities
for development of an Industrial corridor along the alignment of the connecting
infrastructure. A band of 150 km (Influence region) has been chosen on both sides of the
Freight corridor to be developed as the Delhi-Mumbai Industrial Corridor. The vision for
DMIC is to create strong economic base in this band with globally competitive
environment and state-of-the-art infrastructure to activate local commerce, enhance
foreign investments, real-estate investments and attain sustainable development. In
addition to the influence region,
In Rajasthan, the alignment of DFC passes through Phulera-Ajmer-Marwar and over 58%
area of the state falls within the influence area of DMIC. The state of Rajasthan has rich
agricultural and mineral base. Key industrial sectors in the state include Cement, Building
Stones, Gypsum, Gems & Jewels, Chemical, Food processing and Textiles. The emerging
sectors include IT/ITES, Auto Component and Knowledge Hubs. Based on the strengths
of specific regions across the state, five development nodes are identified in the influence
area of DMIC. It includes two investment regions and three industrial areas. Preliminary
discussions with the State Government agencies also indicate that adequate land is
available for the envisaged developments.

67
The proposed plan passes through the shahjahnapur area. This will directly benefit Good
Livings Investment in the region. It falls under Node No.7: Khushkhera-Bhiwadi-
Neemrana Investment Region.
The map of the Proposed plan is as follows:
Advantages
 Proximity to the Golden Quadrilateral, NH-8 and the Dedicated
Freight Corridor would provide added value to the investors in the
region.
 State Government has already identified and designated the land
for developing the region as Global City.

68
As it is said that investing in real estate in never a loss, it can be short term loss but in the
long run the investment always pays off. So it was proved in the case of God living
consultants’ shahjahanpur Project.

69
Synopsis
GOOD LIVING
CONSULTANTS
PVT LTD.
“Investors Perception in
Real estate”
Ritika Honey Lal
Industry Guide: Mr.Satender Chauhan
Faculty Guide: Prof.(Dr.) Ajit Mittal
Objective
The project undertaken by me was
based on perception of the investors in
the real estate industry. I studied the
various factors that effect the growth of
the industry and also the factors that
effect the decision of the investor to
invest in various options that are
available.The main finding was that the
government plays major role in the
growth of the real estate sector and also
that disposable income is another
important player that determines the
investment decision.
I studied a sample of 75 people to infer
the results of the research.During the
study I used primary data in the form of
questionnaire by way of personal

70
interview and secondary data was
collected from internet , journals and
magazines.
Perceptionabout the Industry Guide :
 My industry guide has been very
helpful throughout the project.
 He has a very flexible approach
toward work
.

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