Customers Investors Estate Essay Example

deficiency of installation in their old or current abode.

During the class of this research work I was provided with an chance to interact with the figure of people to have their responses for questionnaire gave a glance of the behaviours of people and how a research worker should continue to arouse the responses comfortably. The experience gathered during this research survey will assist me to understand the existent estate sector and clients perception about puting in existent estate.

Chapter 2

Real Estate IN INDIA

Beginning: Knight Frank Research

Real Estate Boom in India:

India, like many other parts of the universe is whizzing off in the face of a existent estate roar. In India there is a existent estate roar in any way you wish to see. Whether it is Bangalore, Pune, Calcutta or Hyderabad or even already sky high Mumbai and Delhi -the narrative is the same.

Now flats are more than merely houses. They are about lifestyle. So while the first lodging settlements had nil but a security guard, these new lodging settlements have a gym ( watering place, Jacuzzi, steam ) , swimming pool ( heated, lined with Italian marble ) .

Some have a multiplex, shopping composite. There are those which offer a servant entryway. The following measure is making an atmosphere. What does on differentiate in a house? So you now

have themed houses.

The concern is that in India, the stock monetary values are at the tallness of a roar. As it happens, a roar in one sector translates into a roar in another sector with invertors hotfooting to park their money in a safe topographic point. Besides, add the foreign exchange oversupply in India fuelled to a great extent by package applied scientists parking their dollar wages in existent estate ( particularly near the tech hubs ) . Low involvement rates ( comparatively, as compared to 10 old ages back ) over the last few old ages made bank loans easier.

Driven by positive growing in the economic system, existent estate in India is dining. The twelvemonth 2006 started as on a promising note when the Government of India opened the building and development sector in February 2006, and allowed 100 per centum foreign direct investing ( FDI ) under the ‘automatic path ' in order to spur investing in the critical substructure sector. The authorities has thrown open the moneymaking parts of the Indian world market to planetary investors for the first clip.

The relaxation of the FDI ceiling saw large names fall ining custodies with the Delhi based developments to denote India 's largest FDI in the world sector. Groups demoing involvement in India include major Indian and International Companies.

The development of existent estate in India focal points on two primary countries: retail and residential.

• The planetary real-estate confer withing group Knight Frank has ranked 5^Thursdayin the list of 30 emerging retail markets and predicted an impressive 20 percent growing rate for the organized retail section by 2010.
• The organized section is expected to turn
  

from a mere 2 per centum to 20 per centum by the terminal of the decennary, it said.

The roar is besides pulling involvement from foreign participants. In recent old ages, non-resident Indians ( NRIs ) have played a really of import function in transforming the Indian existent estate market. Opening-up of the Indian economic system provided them with new chances and they have shown a great trade of assurance in the changed set up. Since 1994, NRIs have invested in ample sum, of which a large ball has found its manner into the belongings market. Anticipation by NRIs has brought about a batch of adulthood in the market which in the yesteryear had entirely banked on the existent users.

COMMERCIAL

• India has been hit by the planetary outsourcing moving ridges. If IT/ITES continues to turn at the estimated growing rate for the following four old ages it will be an about US $ 24 bn. Industry by FY 2010.
• NASSCOM-MCKINSEY studies have predicted that the ITES sector in India will supply occupations to 1.1mn sq. ft. of office infinite.
• Over the class of the past five to ten old ages, the major resident of the commercial existent estate has been the IT/ITES/BPO sector as opposed to banking, finance, transnational, corporate and big Indian fabrication companies. About 80 per centum of demand for commercial infinite today is thanks to the above sector.
• Consequently, a displacement is go oning towards cheaper and larger locations in the suburbs closer to dense population pockets providing quality work force at competitory rates. Therefore, a gradual diminution in the position of the CBDs, which is already experiencing vacancy rates of over 20-30
  

per centum, is expected over clip.

RESIDENTIAL

• Residential belongings is deriving land as an attractive manner of puting for middle-class people taking to turning demand.
• The residential market has picked up due to the lower involvement rates coupled with easy handiness to loans.
• The addition in monetary values of residential belongingss nationally has been 15-20 per centum. This can be mostly attributed to the addition in the land monetary values every bit good as the input costs.
• With the shifting of more and more companies and offices to the suburbs, growing in the suburban residential existent estate market has besides been witnessed. Lavish townships with good quality building with epicurean comfortss and installations are now coming up.
• The demand for good lodging is apparent, as most of these
  

developments have witnessed a pre-construction engagement of 75-80 per centum and even 100 per centum in some instances, both by terminal users and investors.

Retail

• Retail is considered the universe 's largest private industry with entire gross revenues of US $ 6.6tn. With close to 12 manganese. Mercantile establishments, India has the largest mercantile establishment denseness in the universe. The consumers demand for international quality atmosphere, convenience and substructure will drive future growing.
• Retailing is going the following roar industry with organized retail being a market of US $ 6 bn. It is due to the turning eight crease in the coming decennary. It is expected that the portion of modern retail shall turn from about 8 per centum in 2007 to 20 per centum by the terminal of the decennary.
• The entire retail industry turning exponentially at 8.5 per centum per annum and consumer disbursement has increased at 12 per centum per annum during the last 3 old ages.
• The Indian consumer today is germinating. The increased buying power of the urban educated in-between category, more exposure to trade names and merchandises through telecasting and foreign trips, and the turning figure of working twosomes has led to a alteration in purchasing wonts and therefore
  

the retail range in India today about 50 manganese. Sq. ft. of organized retail infinite will be coming up across the state by the twelvemonth 2010.

1. Consumer demographics
2. Developer repute
3. Cost of renting infinite
4. Quality of other renters
5. Car parking
6. Support installations
7. Infrastructure
8. Care

Whilst the figure of shopping promenades has seen a rush in the recent yesteryear, the hereafter development is now focused on supplying for leisure activities as good. A important figure of multiplexes are being developed as an built-in portion of retail promenades, along with comfortss such as nutrient tribunals and video game parlours. PVR, INOX, Satyam Cineplex 's and Shringar Films are plunging the multiplex concern enlargement across the state while Appu Ghar, The

Delhi Based Amusement Park, has programs of get downing operations in at least two new locations.

The following measure in the development of promenades in India is forte promenades and subject promenades that cater to a specific mark audience. These would include marrying promenades, car promenades, place accoutrements and life manner promenades, mill mercantile establishment promenades, etc.

Some of these ironss after puting up in the tubes are already looking to plunder in to the non-metros to make out to a broader client base.

Beginning: Knight Frank Research

Beginning: Knight Frank Research

GROWTH DRIVERS OF REAL ESTATE

Indian Real Estate Market Growth Drivers:

Beginning: www.bnicapital.com/GrowthDrivers

• The robust growing in IT sector has pumped the growing in existent estate sector. An appraisal of 70 per centum of new building is for the IT sector.
• Retail sector is turning at a fast gait. India has been ranked as 5^Thursdayin the list of 30 emerging retail market and 20 per centum growing is predicted for the organized retail section by 2010.
• Gyrating demand for hotel suites has bought roar in hotel industry. The demand supply will stay over 50 per centum beyond 2009 bring forthing significant concern for existent estate.

“THE CORRELATION BETWEEN THE STOCK MARKET AND THE PROPERTY MARKET IS MARGINAL ENOUGH TO BE INSIGNIFICANT. WHILE THE STOCK MARKET IS DRIVEN BY INVESTORS ON A DESIRE-TO-EARN BASIS, THE PROPERTY MARKET IS DRIVEN BY THE END USERS ON A NEED-TO-USE BASIS.”

Major Players IN INDIA

Real Estate Developers:

• DLF
• UNITECH
• ANSALS
• PARSVNATH Developers
• OMAXE LTD.
• ELDECO
• Eros

Chapter 3

RESEARCH METHODOLOGY

Research methodological analysis:

Primary Aims:

1.  Analyze the net income borders of Real Estate developers in different undertakings.
2.  Survey of rivals.

( DLF, ANSALS, UNITECH, PARSVNATH, and OMAXE )

• Undertaking inside informations
• Market
  

portion

Analyze the customer/investor perceptual experience about puting in Real Estate in NCR.

• Interest in puting in existent estate.
• Reasons for puting in existent estate. ( Short term, Long term, End usage, Recuring Tax returns )
• Risk factor in existent estate and Return.
• Undertaking they like to put their financess. ( Office Spaces, Plots, Shopping Malls, Multiplexes, Group lodging )
• In which assets category they find themselves most comfy. ( Real Estates, Equities, Debt and Commodities )
• Their demand for specifications and factors they find appropriate where they are puting their financess.
• Lack of installation in old or current abode.

What are the hazard and return factors in puting in existent estate.

Why they invest in existent estate and for what ground.

Hypothesis:

• Hydrogen₀: The clients have involvement in puting in existent estate.
• Hydrogen₁: The clients do non involvement in puting in existent estate.
•  Hydrogen₀: The developers are successful in work outing the jobs and supplying necessary specifications to clients.
• Hydrogen₁: The developers are unsuccessful in work outing the jobs and make non supply necessary specifications to clients.

Research Design:

The survey is to carry on on the portion of concern enlargement program of Dreamland boosters and Advisers Pvt. Ltd. to spread out their concern and work out client 's issues. On this portion, Market Survey is conducted to cognize the customer/investor perceptual experience about puting in existent estate.

In this research focal point is on current clients positions about existent estate as an plus category.

The attack is direct. The study is traveling to be done through a big sample of major customers/investors via questionnaire in NCR.

Sample Design:

The sample size for the above survey was a sum

of 200 from the whole NCR. The respondents of a sample are selected utilizing non-probability processs. The mark respondents were HNI 's ( High Network Individuals ) , upper section of in-between category, high degree executive work force of corporations.

Scope of the survey:

Among the survey cardinal findings are:

• Customers have a short history of existent estate investing but are presently increasing their allotment to the existent estate, more so than equities, debt and trade goods.
• Legal and regulative hazard, hard to find the best chances and hazard of hapless professional advice are given as the chief ground for existent estate investment.
• Despite of developers puting their big portion of financess on amusement centres like shopping promenades, multiplexes etc. big portion of clients prefer to put in residential undertakings such as secret plans and group lodging.
• Residential belongings is deriving as an attractive manner of investing of in-between category people taking to turning demand.
• The most of import factors act uponing the existent estate plus allotment determination are statistical estimations of hazard and return, advice from external advisers and long term historical public presentation.
• Despite of billion of money spent on trade name advertisement, client 's rate brand-strength as a weak influence at best on their purchase determinations.
• With the shifting of more and more companies and offices to the suburbs, growing in the suburban residential existent estate market has been witnessed. Lavish townships with good quality building replete with epicurean comfortss and installations are now coming up. Survey reveals the factors or specification needed by the clients where they are puting their financess and besides the deficiency of installation in their old or current abode.

Restrictions:

May be some of the factors are difficult to find and unmanageable and unavoided.

• The cardinal fact is the ability to serve the debt. The general pollex regulation for debt helping is to curtail all EMI payments to 45 per centum of the investor 's disposable income. This figure could change harmonizing to the age of the individual and his fiscal committednesss. 25 old ages old single individual with no committedness can perpetrate even to the extent of 75 per centum of his disposable income to serving a place loan EMI. But a 40 old ages old individual with a married woman and a kid may fight to serve an EMI of 55 per centum of his disposable income. The quantum of loan and structuring the EMIs has to carefully be after before manus to fall in debt trap.
• In world plus allotment is far more sophisticated procedure. It varies from individual to individual and depends on individual 's fiscal program, background, disposable income, age, and investor 's penchants.
• See
  

middle-aged individual from a in-between category background seeking a stable life long occupation. He can non be expected to put in equities and belongings. His penchant would be bank FDs. On the other manus, a market understanding immature twosome in the corporate sector with high excess would prefer to put in belongings.

Chapter 4

CRITICAL REVIEW OF LITERATURE

Critical Review of Literature

A merely released customer/investor research survey, titled Customers/investors perception about puting in existent estate throws a light on institutional investors and clients face a complex set of picks with regard to the composing and direction of investing portfolios.

In this research we collected information about the existent estate allotment picks, beliefs and position points of customers/investors.

Our probe of the plus allotment gives interesting consequences.

• Our respondents turn up existent estate much more than any other plus category such as equities, debt and trade goods. But they mention that the cost associated in puting in existent estate is much more than these categories.
• The possible relevancy of uncertainness is immediate evidenced from many of the questionnaire consequences. In many inquiries, we observe important differences in the “Do n't know” response.
• In one of our inquiry in questionnaire we ask the factors you find appropriate for hazard in existent estate. i.e. plus volatility, deficiency of dependable rating informations, legal and regularity hazard, hazard of hapless professional advice, difficult to find best chances.

May be some of the factors are difficult to find and unmanageable and unavoided.

• The cardinal fact is the ability to serve the debt. The general pollex regulation for debt helping is to curtail all EMI payments to 45 per centum of the investor 's disposable income. This figure
  

could change harmonizing to the age of the individual and his fiscal committednesss.

Comparison of function of hazard and uncertainness with US Market

• Diversification and rising prices hedge are given as the chief grounds for puting in existent estate in US market.
• The expected hazard return of existent estate is perceived as midway between US stocks and bonds.

Chapter 5

Real ESTATE INVESTMENT

Industry profile

India, like many other parts of the universe is whizzing off in the face of a existent estate roar. In India there is a existent estate roar in any way you wish to see. Whether it is Bangalore, Pune, Calcutta or Chennai or Hyderabad or even already sky high Mumbai or Delhi - the narrative is same.

Now flats are more than merely houses. They are about lifestyle. So while the first lodging settlements had nil but a security guard, these new lodging settlements have a gym ( watering place, Jacuzzi, steam ) , swimming pool ( heated, lined with Italian marble ) some have a multiplex, shopping composite. There are those which offer a servant entryway. The following measure is making an atmosphere.

What does one differentiate in a house? So you now have themed houses.

The concern is that in India, the stock monetary values are at the tallness of a roar. As it happens, a roar in one sector translates into a roar in another sector with invertors hotfooting to park their money in a safe topographic point. Besides, add the foreign exchange oversupply in India fuelled to a great extent by package applied scientists parking their dollar wages in existent estate ( particularly near the tech hubs ) . Low involvement rates ( comparatively, as compared to 10 old ages back ) over the last few old ages made bank loans easier.

Driven by positive growing in the economic system, existent estate in India is dining. The twelvemonth 2006 started as on a promising note when the Government of India opened the building and development sector in February 2006, and allowed 100 per centum foreign direct investing ( FDI ) under the ‘automatic path ' in order to spur investing in the critical substructure sector. The authorities has thrown open the moneymaking parts of the Indian world market to planetary investors for the first clip.

The relaxation of the FDI ceiling saw large names fall ining custodies with the Delhi based developments to denote India 's largest FDI in the world sector. Groups demoing involvement in India include major Indian and International Companies.

With belongings roar distributing in all waies, existent estate in India is touching new highs. However, the growing besides depends on the policies adopted by the authorities to ease investings chiefly in the economic and industrial sector. The new base adopted by Indian authorities sing foreign

direct investing ( FDI ) policies has encouraged an increasing figure of states to put in Indian Properties.

India has displaced US as the second-most favored finish for FDI in the universe. As the investing scenario in India alterations, India which has attracted more than three times foreign investing at US $ 7.96 billion during the first half of 2005-06 financial, as against US $ 2.38 billion during the corresponding period of 2004-05, doing India amongst the `` dominant host states '' for FDI in Asia and the Pacific ( APAC ) .

The positive mentality of Indian authorities is the cardinal factor behind the sudden rise of the Indian Real Estate sector - the 2nd largest employer after agribusiness in India. This budding sector is today witnessing development in all country such as - residential, retail and commercial in tubes of India such as Mumbai, Delhi & A ; NCR, Kolkata and Chennai. Easier entree to bank loans and higher net incomes are some of the polar grounds behind the sudden leap in Indian existent estate.

Why Invest In Indian Real Estate? Flying high on the wings of dining existent estate, belongings in India has become a dream for every possible investor looking frontward to delve net incomes. All are eyeing Indian belongings market for a broad assortment of grounds:

• It 's of all time turning economic system which is on a uninterrupted rise with 8.1 percent addition witnessed in the last fiscal twelvemonth. The roar in economic system additions buying power of its people and creates demand for existent estate sector.
• India is traveling to bring forth an estimated 2 million new alumnuss from assorted Indian
  

universities during this twelvemonth, making demand for 100 million square pess of office and industrial infinite.

The relaxed FDI regulations implemented by India last twelvemonth has invited more foreign investors and existent estate in India is apparently the most moneymaking land at nowadays. The revised investor friendly policies allowed aliens to ain belongings, and dropped the minimal size for lodging estates built with foreign capital to 25 estates ( 10 hectares ) from 100 estates ( 40 hectares ) . With this sudden alteration in investing policies, the abroad houses can now set up commercial edifices every bit long as the undertakings surpass 50,000 square metres ( 538,200 square pess ) of floor infinite.

Indian existent estate sector is on roar and this is the right clip to put in belongings in India to harvest the highest wagess.

Company profile

In a Short span of clip, ‘Dreamland Promoters Consultants ' has established its repute as the lifting star of Indian star of Indian existent estate industry. The extraordinary accomplishments of

the company are alone and have rapidly translated into truth and religion of its clients and associates. Dreamland Promoters and Consultants Pvt. Ltd. , is an approaching name in the field of lodging development.

Promoted by the immature and airy, Mr. Pawan Bhadana, Dreamland, an ISO 9001:2000 company is bound together with energies of young person and wisdom of experience. A thorough existent estate professional with an experience spanning over 10 old ages, Mr. Bhadana himself is a adult male of political orientations. Under his dynamic leading, Dreamland has achieved mileposts that were hitherto. However, foe him success has come non merely in the signifier of concern volumes, but as love and grasp of all concerned.

Dreamland understands that a place is non merely by brick and howitzer. Behind the building of every place, lie the dreams and aspirations of a household. To fit their outlooks and to truly do their dreams come true, batch of attention and a batch of committedness has to travel right from planing it the finishing portion. And to supplement such fantastic place, a pleasant environment besides needs to be created. This is the ground that the company has associated with itself the best designer, contrivers and building professionals.

Vision:

To play an of import portion in the procedure of lodging development in our state by making a reputed organisation of globally appreciated criterions based on unity, values and trust.

To lend to the instance of society by originating and back uping educational, cultural and wellness development activities peculiarly for underprivileged kids

Mission:

To develop present quality lodging and to work towards accomplishing excellence in our field

Apart from its present domain of concern, Dreamland has mega programs

to diverseness and excels in other Fieldss, including: Media, IT, Education, Hospitality.

To transport out its corporate societal duties, the constitution of ‘Dreamland Foundation ' is on the cards. To get down with, the foundation will provide to the instruction demands of underprivileged kids.

MD 's Message

Mr. Pawan Bhadana

M.D. , Dreamland Promoters Consultants Pvt. Ltd.

“We purpose to make existent value for our clients by following quality criterions that match the best in the universe. Encouraged by the trust of our valued clients every bit good as our spouses, we strive to set up benchmark in existent estate development and turn many dreams into reality.”

Future Prospects:

Dreamland Group has embossed its name on the land of Indian existent estate sector. Headed by the visionary, Mr. Pawan Bhadana, CMD and driven by a dedicated squad of existent estate professionals, Dreamland Group is committed to make exceeding undertakings that offer existent value to its clients.

Up billowing with widely recognized and appreciated undertakings, the group already has to its recognition the expansive success of Golf View City at Hapur ( approved by the H.D.P.A. ) and The Willows-Lifestyle Apartments at Ghaziabad ( approved by G.D.A. ) that are presently under development.

With its approaching residential undertaking, Dynasty Apartments, Dreamland is all set to advance and develop ‘Bhiwadi ' , the latest finish for existent estate development. Here, the group proposes to develop a residential undertaking dwelling of flats and secret plans. Never-never lands, Dynasty Apartments will integrate latest international engineerings in building and insides. Particular attending is being given for the aged and handicapped and particular installations are being provisioned to do them experience comfy.

Taking its committedness farther, Dreamland has besides proposed ambitious

undertakings at Noida ( Residential Apartments ) , Greater Noida ( Residential Apartments )  Faridabad ( Commercial ) among others.

Company PROJECTS

THE WILLOWS

Come Home to India 's First City

Enjoy a life wrapped in futuristic life style, Luxury and Comfort. At the Country 's first Global metropolis, is the Crossing Republic. The one and merely metropolis in the state planned to convey a whole new universe within and arm 's distance non merely for you and your household, but for your coming coevalss every bit good as with world-class atmosphere, Meticulous Design, Premium Infrastructure and Futuristic installations within the premises.

Contemporary Design

The full metropolis is a perfect of Residential, Commercial and Recreational options where each edifices facade, Color and Heights in designed in sync with the architectural inside informations of other edifices.

Futuristic Facilities

Answering the demands of an organized and comprehensive life style, Crossing Republic besides plans kindergartens, Primary and Secondary Schools and even a College and a university within the metropolis. Intelligent be aftering to run into the Current and Future demands of the occupants, Crossing Republic offers first Commercial options from promenades, Retails, Outlets, Small offices to big corporate workspaces.

Stretching Water Bodies

Set following to the Hindon River, Crossing Republic is blessed with ample beginning of pure H2O. Besides, Reviewing and cascading H2O within the premises will make full your life with reviewing energy.

Recreational Wonders

A immense international-standard cardinal park with tonss of Water organic structures, Play countries, Entertainment zones will review one 's life with ideal balance of unfastened infinites and landscaped verdure.

Strategic Location

Strategically located on the approaching Delhi NCR Ring Road, Crossing Republic is straight connected with three freewaies, NH-24. ( 2010 Commonwealth Games chief route, Eastern

Expressway and Noida-Greater Noida Expressway )

Convenient Approach

Close Proximity to two tube Stationss will link this topographic point with all the countries of NCR in the close hereafter. Sprawling over an country of 50 estates, crossings Republic is so an prototype of modern development and vision that offers a future-proof life.

GOLF VIEW CITY

GOLF VIEW CITY is non merely a residential township, it is a whole new universe that offers you a alone life style crafted for merely a few who value all right gustatory sensation.

Located in one of the most picturesque sites, Golf View City on the National Highway-24, surrounded on three sides with dumbly exuberant green belt, the vicinity has a certain freshness of virgin countryside that can do any nature lover leap with joy!

Golf View City is all about world-class installations and comfy life. The planning is speckless. Golf View City is an reference that announces your reaching in life….it transcends you to a different universe. The ultimate leafy vegetables of your dreams that will up-grade the criterions you had set for yourself.

Golf View City brings you a perfect merger of adult male and nature. It is a alone merger of rippling leafy vegetables, unfastened infinites, interesting architecture and efficient installations.

So pamper yourself and allow your senses take over. After acquiring overpowering response from Dreamland highs of Dreamland Promoters Consultants Pvt. Ltd. in Crossing Republic, NH-24 ( Ghaziabad ) , Dreamland is now conveying a universe category Township Golf View City at Hapur Bye Pass on NH-24.

Golf View City is strategically located on Hapur Bye Pass, yet tucked away from the heavy traffic of the main road. Surrounded by 100 metres wide greenway, it

has in shop for you-peace of head, comfort and satisfaction.

Golf View City is complete in itself, spread over several estates of land. Its alone value offerings that make Golf View City truly sole, it offers the resident with a comprehensive modern metropolis substructure consisting internal comfortss centres and installations of all sorts, the township brings with it odd life filled with an absolute appeal of nature.

Golf View City surely has the perfect offerings to transform your dream place into world.

SWOT Analysis

Strength

• R & D with Dreamland have developed first-class R & D and edifice and developing capablenesss, which has construct a strong client base and set up market leading through the high quality of its units quality.
• The increasing demand for the existent estates nowadayss a great chance for The Dreamland Promoters and Consultants Pvt. Ltd. to increase and scale up the production.

Failing

• Dreamland has low presence in commercial undertakings. It has no units of commercial undertakings.
• Dreamland is chiefly focused on residential undertakings.
• Not looking towards the range of western UP where demand of residential undertakings is increasing.
• Few Undertakings, thereby less coverage in the market.

Opportunity

• There is a range of concern as there is a demand for existent estates.
• The large IPO ( initial public offering ) is a large chance of the company.
• The construct of marrying promenade.
• The subject based promenades are the manner to the hereafter.

Menace

• Dreamland has the biggest menace from the planetary and big participants in the existent estate like DLF, UNITECH & OMAXE.

Chapter 6

STUDY OF COMPETITORS

THE COMPETITORS

• DLF
• UNITECH
• OMAXE.
• ANSALS
• ELDECO
• Eros
• PARSVNATH Developers

DLF

DLF soon has its land bank in 31 different metropoliss, through with a

little presence ( less than 100 estates ) in 20 of these. In add-on to 574 manganese Sq. ft. land bank, DLF has 23 ace luxury hotel sites, a golf class and nines.

Too big dependance on Gurgaon:

The entire land bank of 10,225 estates is extremely skewed in favours of Gurgaon and to some extent Kolkata excessively. DLF has about 72 per centum of its entire land bank in Gurgaon ( 46 per centum ) and in Kolkata ( 23 per centum ) together.

Land cost and current debt degrees

DLF has a entire debt of Rs. 94.5bn and an outstanding sum of Rs. 55.4bn towards land Rs. 94.5bn and cost. Of the entire debt of Rs. 94.5bn, 75 per centum is on a drifting rate footing which is a hazard in a lifting outstanding land involvement rate environment. DLF had capitalized Rs. 1.1bn out of the entire involvement charge of cost is Rs. 2.8bn for FY06 and estimated the involvement charge for FY10 would be Rs. 5.4bn, on a conservative footing, as involvement rates have gone up by approximately 150 per centum in the last nine months.

A speedy snapshot on country developed, under building and planned

A sum of 10,255 estates translates into 574mn. Sq. ft. of salable country, the entire 574mn sq. ft. involves the development of secret plans of 46mn sq. ft. , residential flats of 377mn sq. ft. DLF is of the sentiment that its present land bank is sufficient for the following 10-11 old ages. Out of 574mn sq. ft. , DLF has a sum of 46mn sq. ft. under development as of 30 November 2006, between FY07-09 with 9m sq ft under residential

; 26m sq foot under commercial and 11m sq foot under retail development.

Snapshot of DLF yesteryear and future developments programs

UNITECH

The Rs. 1600crores Unitech Group is one of the Major Township Planning and existent estate development companies in India and has a diverse concern portfolio of heavy building, leisure and amusement undertakings, cordial reception concern and residential belongings developments.

After playing 2nd violin to DLF in Gurgaon, the low-profile Unitech Group is bit by bit asseverating itself in the existent estate market of the national capital part. In May 2006, in an disturbance of kinds, Unitech got the better of DLF by catching 345 estates of premier land in Noida for whacking

Rs. 1582 crores. Unitech has a land bank of 10500 estates whose dislocation is shown below and its hereafter programs are of 500m sq foot for the twelvemonth 2008-09 for which they need immense sum of support.

Unitech Builder plans to utilize the Noida land to do 4000 top-of-the-line flats priced at Rs. 2 crores ( Rs. 20 million ) each. The investing required to construct this dream residential undertaking: Rs. 3000 crores ( Rs. 30 billion ) . Besides inking this mega trade, Unitech has been on a land-buying spread across the state - from Gurgaon to Kolkata, Kochi, Hyderabad and Chennai - to set up a pan-Indian presence. In the last few months, the Group has created a land of over 8,000 estates.

PARSVNATH

Parsvnath developers announced that they would put Rs. 1600 crores over the following three old ages to build a metro station semen shopping promenade near the Commonwealth Games Village in the National Capital. The metro station semen shopping promenade is spread over 7.3 estates and about 3.65lakh sq. ft. of retail infinite would be developed. This will be the 12^Thursdaypromenade which the Parsvnath will develop at tube Stationss, owned by Delhi Metro Railway Station Corporation, a edifice operator transportation footing.

Parsvnath undertakings cover salable country of 134 million sq. foot, including owned land development rights ; this does non include land owned in SEZ concern. Ongoing undertakings are spread over 17 provinces and 46 metropoliss.

Undertakings under Development

OMAXE

It started in 1987 as a vision, to recognize the dreams of 1000000s across the length and breath of our state, is today an ISO 9001:2000, D & B 5A2 rated organisation that proudly boasts of over a 100 successfully completed undertakings under its belt. At OMAXE we believe that our dramatic public presentation, extra-ordinary growing and immaculate path record over the past 19 old ages are cogent evidence of the infinite possibilities that lie within us. It is the belief that puts OMAXE in the head of this multi-billion industry as a innovator with an unshakeable repute for presenting what is unconceivable for others. It besides beckons us to go on recognizing the dreams of million into world.

OMAXE, one of the India 's fastest turning Real Estate developers, has registered its presence across the state with a healthy mix of undertakings that range from good planned office infinites to international criterions townships, group lodging, province of the art malls, commercial composites, multiplexes, subject promenades, resorts, hotels, service flats etc. The company has besides diversified into IT parks, bio-technology Parkss, SEZs etc.

Today, OMAXE enjoy a repute of being one of the India 's premier Real Estate Developers with an unerasable focal point on client satisfaction. This effort has been achieved through the acceptance of

quality system criterions that integrate technological and design inventions with a strong proficient base to supply province of the art existent estate options.

At OMAXE, the human head and spirit continue to be our most cherished resource and a critical ingredient in the dramatic success of our enterprises. Today OMAXE self-praises of over 800 qualified work forces and adult females who are successfully turning their dreams, and dreams of million into world.

Having registered phenomenal start based on the successful acquisition and execution of a big figure of extremely disputing and enormously varied undertakings, all in a short span of under two decennaries, OMAXE today enjoys the repute of being North India 's fastest turning Real Estate Developer.

Chapter 7

Datas

Data Collection

As a preliminary for the concern development of the company it was indispensable to happen the customer/investor perceptual experience about puting in existent estate.

For roll uping the information a questionnaire was designed concentrating on the chief metropoliss in NCR like Greater Noida, Noida, New Delhi and Ghaziabad where the company is runing its undertakings.

The respondents in our sample size are professionals from major public and private establishments which include directors, advisers, owners, concern category etc. Approximately 200 questionnaires were filled and finally collected 169 with positive response that they have their involvement in puting their financess in existent estate.

Table 1 summarizes the entire sample size which reflects that bulk of respondents have their involvement in existent estate.

Table: 1 Sample size and Respondents:

7.2 Primary Data

The whole of the survey is primary informations based oriented through a questionnaire. The contents of the questionnaire are:

• Interest in puting in existent estate.
• Reasons for puting in existent estate. ( Short term, Long term, End usage, Recuring Tax returns )
• Risk factor in existent estate and Return.
• Undertaking they like to put their financess. ( Office Spaces, Plots, Shopping Malls, Multiplexes, Group lodging )
• In which assets category they find themselves most comfy. ( Real Estates, Equities, Debt and Commodities )
• Their demand for specifications and factors they find appropriate where they are puting their financess.
• Lack of installation in old or current abode.

The questionnaire is attached in annexure.

Chapter 8

FINDINGS AND ANALYSIS

Findingss and Analysis

The company, Dreamland Promoters and Consultants Pvt. Ltd. has soon 3 undertakings out of which 2 have been already cleared and one is yet to be executed. The developers expect 30-40 % returns/profit borders, although it varies from undertakings to undertakings due to assorted grounds like clip, cost of purchase, etc.

Question 1 among the questionnaire reflects the existent estate investing policy specifically. We asked our respondents do

you hold involvement in puting your financess in existent estate.

The reply to the inquiry 1 indicate that a surprising figure of respondents, about 169 out of 200 have their involvement in puting their financess in existent estate.

Exhibit 1: Question 1

Do you hold involvement in puting in Real Estate!

Interpretation:

Certain addition in belongings monetary values in the last four old ages, high income, cheaper loan rates, no longer adverse to debt and ready to dismiss future net incomes today could be the chief grounds for development of involvement in existent estate of clients.

Reasons for the customers/investors for puting in existent estate, may it be Short term returns, Long term returns, End usage or repeating returns. Different respondents from different metropoliss show different perceptual experiences. End usage and long term investing are the two grounds among four who votes bulk of respondents.

Exhibit 2: Question 2

Reasons for puting in Real Estate!

Interpretation:

Since existent estate has beaten all signifiers of investing in last four old ages and sought to be emerging as a cardinal component in customers/investors portfolio and by paying an EMI alternatively of paying revenue enhancements and rent they develop a compulsory salvaging wont and make a valuable plus for a long period of clip could be a possible ground for this above consequence.

The inquiry mentioned provinces about the top hazard factors associated with the existent estate puting. Asset volatility, deficiency of dependable rating informations, legal and regularity hazard, hazard of hapless professional advice, difficult to find the best chances are the assorted hazards associated with existent estate and mentioned in questionnaire.

Exhibit 3: Question 3

Top hazard factors in Real Estate!

Interpretation:

Hazard of hapless profession advice, legal and regularity hazard, difficult

finding the best chances are the top three factors. Change in authorities policies, alteration in tendency and manner cold be the chief ground for above.

Assorted large participants had registered its presence across the state with a healthy mix of undertakings. The inquiry revolves around the same perceptual experience about customers/investors view in which undertaking they would wish to put. - Office Spaces, Shopping Malls, Plots, multiplexes & A ; Group Housing are few of the undertakings.

Exhibit 4: Question 4

Undertaking in which customers/investors like to put!

Interpretation:

There 's been an apparent displacement in perceptual experience and mentality in the Indian in-between category over the last five to ten old ages, thanks to the impact of liberalisation and opening up of the Indian economic system, a rise in mean income across families, and a tangible desire to ain things ‘now ' . The most important facet of this ‘shift ' in the consumer 's mentality is possibly explained by the fact that the immature ( or Next Generation ) are more in charge of their lives and eager and impatient to presume the universe. It 's a coevals that is independent, autonomous and atomic in nature. And it is this avidity that is wining that has fuelled a thrust to have what one desires the most: a place, a auto and a healthy life style. Other drivers have been inducements from the authorities to purchase places, improved quality of edifices and belongings services and a corsage of fiscal options. Tax grants, belongings monetary value dips and lower involvement rates have besides helped.

The inquiry ask “on a 5-point graduated table, ….how does the long term expected return for the

existent estate constituent and your portfolio comparison with the long term expected return for the undermentioned plus category in your portfolio” ?

In which of the undermentioned plus categories are you most comfy in puting your financess.

The research study that most respondents believe existent estate has an expected return a small above that for equities and debt. They expect trade goods excessively significantly and slightly less.

What factors might explicate this evident contradict?

• First, allotment might non be based on modern portfolios theory.
• Second extra factors impacting hazard and return estimates-such as higher comparative cost of existent estate.
• Consistent with this impression is the existent estate has done good comparative to stocks and bonds late, a figure of clients reported puting in existent estate merely late.

The inquiry asks about the factors or specifications to be included by developer where the customers/investors are puting their financess.

The factors listed below are most demanding among all:

• Low-cost monetary value scope.
• Availability of loan at low involvement rates.
• Easy payment program.
• Clear rubric of belongings.
• Resale value.
• Connectivity to schools, infirmaries, amusement centres.
• Peaceful vicinity
• Pollution free environment.
• Quality building and care.
• Safety and Security, Water Availability, Power Back-Up, Car Parking, Recreational Facility, Club Membership etc.
• ROI ( Return on Investment )

Chapter 9

Recommendation

Recommendations:

• In world plus allotment is far more sophisticated procedure. It varies from individual to individual and depends on individual 's fiscal program, household background, disposal income, age, and investor 's penchants. So before aiming the clients the company should see the factor.
• See middle- aged individual from a in-between category background seeking a stable life long occupation. He can non be expected to put in equities and belongings.
  

His penchant would be bank FDs. On the other manus, a market understanding immature twosome in the corporate sector with high hard currency excess would prefer to put in belongings. The age factor should be decently defined before aiming.

Chapter 10

BIBLIOGRAPHY & REFERENCES

Bibliographies:

1. hypertext transfer protocol: //www.dreamlandindia.com
2. hypertext transfer protocol: //www.ssrn.com
3. hypertext transfer protocol: //www.unitechgroup.com
4. hypertext transfer protocol: //www.omaxe.com
5. hypertext transfer protocol: //www.dlf.in
6. hypertext transfer protocol: //www.parsvnath.com

Chapter 11

ANNEXURE

Questionnaire

What are the client 's and investors perceptual experiences about puting in Real Estate!

Introduction

Thank you for taking the clip to finish the study. Your feedback is built-in to our academic research how clients think about puting in existent estate. Specifically we want to bring out why the existent estate is such a limited portion of most of the clients and organisation portfolios.

Your reply will stay purely confidential and will be used for

research intent merely. The study should take about 5-7 proceedingss to finish. Thank you one time once more for your clip.

Name: Age:

Address: Occupation:

•  Make you hold involvement in puting your financess in Real Estate?

[ ] Yes [ ] No

If yes, delight reply the undermentioned inquiries.

•  Have you of all time invested your financess in Real Estate?

[ ] Yes [ ] No

•  Reasons for puting in Real Estate?

[ ] Short Term Return [ ] Long Term Return

[ ] End Use [ ] Recurring Return

[ ] we do non put in Real Estate

• Top hazard factors in existent estate and return?

[ ] Asset volatility [ ] Lack of dependable rating informations

[ ] Legal and Regularity risk [ ] Risk of hapless Profession advice

[ ] Hard to find the best chances [ ] any other

•  Assorted large participants had registered its presence across the state with a healthy mix of undertakings. In which undertaking you would wish to put your financess.

[ ] Office Spaces [ ] Shopping Malls

[ ] Plots [ ] Multiplexes

[ ] Group Housing [ ] Any Other, Please specify_________

• For which of the undermentioned assets categories are you most comfy in puting your financess.

Least Comfortable