A project report on "working analysis of organisation in Real estate and consumer behaviour"
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This document is a summer training report submitted by Amaan Khan to Sherwood College of Professional Management in partial fulfillment of the requirements for a Bachelor of Business Administration degree. The report discusses a summer training undertaken at Earth Infra Venture Private Limited, a leading real estate company in India. It provides an overview of the real estate sector and Earth Infra's profile, including its origin, growth, present status and ongoing projects. The report also covers topics like consumer behavior in real estate, careers in real estate, and limitations of the industry.
A project report on "working analysis of organisation in Real estate and consumer behaviour"
- 1. SUMMER TRAINING REPORT ON Working Analysis of Organisation in Real Estate & Consumer Behaviour UNDERTAKEN AT EARTH INFRA VENTURE PRIVATE LIMITED Submitted in partial fulfillment of the requirements for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION SHERWOOD COLLEGE OF PROFESSIONAL MANGEMENT , LUCKNOW SUBMITTED TO: SUBMITTED BY: Dr.Rajneesh Srivastav AMAAN KHAN SHERWOOD COLLEGE OF MANAGEMNT BBA-Vth SEM. LUCKNOW ROLL NO: 11072101006
- 2. CONTENTS: Certificate Acknowledgement Preface CHAPTER 1 INTRODUCTION 1.1 GENERAL INTRODUCTIONS ABOUT THE SECTOR. CHAPTER 2 PROFILE OF THE ORGANIZATION 2.1 ORIGIN OF THE ORGANIZATION 2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION 2.3 PRESENT STATUS OF THE ORGANIZATION CHAPTER 3. DISCUSSION ON TRAININGS 3.1 OBJECTIVE OF THE STUDY 3.2 DESCRIPTIONS OF LIVE EXPERIENCES
- 3. CHAPTER 4. Real estate position in india Interest of real estate investment in young generation Objective of research- oResearch methodology oDATA COLLECTION METHOD oSUMMARY OF LEARNING’S EXPERIENCE oCAREERS IN REAL ESTATe oTYPES OF CAREERS IN REAL ESTATE o BARRIERS TO REAL ESTATE INDUSTRY o LIMITATIONS CHAPTER 5 DATA INTERPRETATION CONCLUSION AND RECOMMENDATIONS Bibliography Summer Training Appraisal
- 4. ACKNOWLEDGEMENTS It was a great opportunity for me to work with EARTH INFRA VENTURE PVT LTD, one of the leading companies in Real Estate business in India. I am extremely grateful to those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. Firstly, I express my sincere gratitude and thank to Ms. VAISHALI PANDEY(DIRECTOR) , EARTH INFRA VENTURE PVT LTD, LUCKNOW for whose kindness I have the precious opportunity of attaining training at EARTH INFRA VENTURE PVT LTD. Under his brilliant untiring guidance I could complete the project being undertaken on the "WORKING ANALYSIS OF THE ORGANISATION IN REAL ESTATE and CONSUMER BEHAVIOUR" successfully on time. I would also like to thank the overwhelming support of all those people who helped me a lot with their suggestions and ideas in the making of this project report. I would also like to thank my faculties of Sherwood College OF Professional Management for their constant enthusiastic encouragement and valuable suggestions, without which this project would not have been successfully completed. I would also like to thank my parents and rest of my family members for being patient and very supportive always especially during the project study....
- 5. PREFACE This report is one of a series based on an analysis undertaken by contraction and infrastructure Group to increase the body of knowledge in India about the significance of real-estate industry in facilitating economic productivity and enhancing National competitiveness. The reports aim to increase the house community's understanding. A project team within construction India has undertaken this work - with the assistance, in some cases, of contract expertise, and the cooperation of all provincial and territorial governments in the provision of house and devolvement authority.
- 6. CHAPTER 1
- 7. 1.1: GENERAL INTRODUCTION Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit Improvement of realty property as part of a real estateinvestment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment. The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency. A similar practice known as flipping is another reason for failure as the nature of the investment is often associated with short term profit with less effort. Sources and acquisition of investment property Real estate markets in most countries are not as organized or efficient as markets for other, more liquid investment instruments. Individual properties are unique to themselves and not directly interchangeable, which presents a major challenge to an investor seeking to evaluate prices and investment opportunities. For this reason, locating properties in which to invest can involve substantial work and competition among investors to purchase individual properties may be highly variable depending on knowledge of availability.Information asymmetries are commonplace in real estate markets. This increases transactional risk, but also provides many opportunities for investors to obtain properties at bargain prices. Real Estate typically use a variety of appraisal techniques to determine the value of properties prior to purchase.
- 8. Typical sources of investment properties include: Market listings (through a Multi listing services or Commercial Information exchange ) Real estate agents and Real estate brokers Banks (such as bank real estate owned departments for REO's and short sales) Government entities (such as Fannie Mae, Freddie Mac and other government agencies) Public auction (forecloser sales, estate sales, etc.) Private sales (off-market transactions for sale by owner for sale by owner) Real estate wholesalers and investors (flipping) Once an investment property has been located, and preliminary due diligence (investigation and verification of the condition and status of the property) completed, the investor will have to negotiate a sale price and sale terms with the seller, then execute a contract for sale. Most investors employ real estate agents and real estate attorneys to assist with the acquisition process, as it can be quite complex and improperly executed transactions can be very costly. During the acquisition of a property, an investor will typically make a formal offer to buy including payment of "earnest money" to the seller at the start of negotiation to reserve the investor's rights to complete the transaction if price and terms can be satisfactorily negotiated. This earnest money may or may not be refundable, and is considered to be a signal of the seriousness of the investor's intent to purchase. The terms of the offer will also usually include a number of contingencies which allow the investor time to complete due diligence, inspect the property and obtain financing among other requirements prior to final purchase. Within the contingency period, the investor usually has the right to rescind the offer with no penalty and obtain a refund of earnest money deposits. Once contingencies have expired, rescinding the offer will usually require forfeiture of the earnest money deposits and may involve other penalties as well.
- 9. Sources of investment capital and leverage Real estate assets are typically very expensive in comparison to other widely-available investment instruments (such as stocks or bonds). Only rarely will real estate investors pay the entire amount of the purchase price of a property in cash. Usually, a large portion of the purchase price will be financed using some sort of financial instrument or debt, such as a mortgage loan collateralized by the property itself. The amount of the purchase price financed by debt is referred to as leverage. The amount financed by the investor's own capital, through cash or other asset transfers, is referred to as equity. The ratio of leverage to total appraised value (often referred to as "LTV", or loan to value for a conventional mortgage) is one mathematical measure of the risk an investor is taking by using leverage to finance the purchase of a property. Investors usually seek to decrease their equity requirements and increase their leverage, so that their return on investment (ROI) is maximized. Lenders and other financial institutions usually have minimum equity requirements for real estate investments they are being asked to finance, typically on the order of 20% of appraised value. Investors seeking low equity requirements may explore alternate financing arrangements as part of the purchase of a property (for instance, seller financing , seller subordination, private equity sources, etc.) If the property requires substantial repair, traditional lenders like banks will often not lend on a property and the investor may be required to borrow from a private lender utilizing a short term bridge loan like a hard money loan from a hard money lender. Hard money loans are usually short term loans where the lender charges a much higher interest rate because of the higher risk nature of the loan. Hard money loans are typically at a much lower Loan to value ratio than conventional mortgages. Some real estate investment organizations, such as Real Estate Investment Trusts (REITs) and some PENTION FUNDS and HEDGE FUNDS, have large enough capital reserves and investment strategies to allow 100% equity in the properties that they purchase. This minimizes the risk which comes from leverage, but also limits potential ROI.
- 10. By leveraging the purchase of an investment property, the required periodic payments to service the debt create an ongoing (and sometimes large) negative cash flow beginning from the time of purchase. This is sometimes referred to as the CARRY COST or "carry" of the investment. To be successful, real estate investors must manage their cash flows to create enough positive INCOME from the property to at least offset the carry costs. With the signing of the jobs Act in April of 2012 by President Obama there has been an easing on investment solicitations. This leaves for new avenues for capital sourcing such as crowdfunding . Developers will be able to finance their projects or fill funding gaps through crowdfunding platforms such as collaperty and funding. Sources and management of cash flows A typical investment property generates cash flows to an investor in four general ways: Net Operating Income (NOI) Tax Shelters offsets Equity build-up Capital Appreciation Net operating income, or NOI, is the sum of all positive cash flows from rents and other sources of ordinary income generated by a property, minus the sum of ongoing expenses, such as maintenance, utilities, fees, taxes, and other items of that nature (debt service is not factored into the NOI). The ratio of NOI to the asset purchase price, expressed as a percentage, is called the capitalization rate , or CAP rate, and is a common measure of the performance of an investment property. Tax shelter offsets occur in one of three ways: depreciation (which may sometimes be accelerated), tax credits, and carryover losses which reduce tax liability charged against income from other sources. Some tax shelter benefits can be transferable, depending on the laws governing tax liability in the jurisdiction where the property is located. These can be sold to others for a cash return or other benefit.
- 11. Equity build-up is the increase in the investor's equity ratio as the portion of debt service payments devoted to principal accrue over time. Equity build-up counts as a positive cash flow from the asset where the debt service payment is made out of income from the property, rather than from independent income sources. Capital appreciation is the increase in market value of the asset over time, realized as a cash flow when the property is sold. Capital appreciation can be very unpredictable unless it is part of a development and improvement strategy. Purchase of a property for which the majority of the projected cash flows are expected from capital appreciation (prices going up) rather than other sources is considered speculation rather than investment. Market overview: Real estate • Real estate industry is currently estimated to be US$ 48 billion, with a CAGR of 30 per cent • Total economic value estimated to be US$ 40-45 billion accounting for four to five per cent of the GDP • Growth driven primarily by IT/ITeS, growing presence of foreign businesses in India, the globalization of Indian corporates and, the rapidly increasing consumer class providing a huge market potential • The real etate sector is in an early growth stage, can be segmented into residential, commercial, retail and hospitality asset classes • Demand-supply gap
- 12. Risk management Management and evaluation of risk is a major part of any successful real estate investment strategy. Risk occurs in many different ways at every stage of the investment process. Below is a tabulation of some common risks and typical risk mitigation strategies used by real estate investors. Risk Mitigation Strategy Fraudulent sale Verify ownership, purchase title insurance Adverse possesion Obtain a boundary survey from a licensed surveyor Environment al contaminatio n Obtain environmental survey, test for contaminants (lead paint, asbestos, soil contaminants, etc.) Building component or system failure Complete full inspection prior to purchase, perform regular maintenance Overpayment at purchase Obtain third-party appraisals and perform discounted cash flow analysis as part of the investment pro forma, do not rely on capital appreciation as the primary source of gain for the investment Cash shortfall Maintain sufficient liquid or cash reserves to cover costs and debt service for a period of time, Economic downturn Purchase properties with distinctive features in desirable locations to stand out from competition, control cost structure, have tenants sign long term leases Tax Planning Plan purchases and sales around an exit strategy to save taxes.
- 13. Foreclosure investment Main article: Foreclosure investment Some individuals and companies are engaged in the business of purchasing properties that are in Foreclosure. A property is considered in foreclosure when the homeowner has not made a mortgage payment for at least 90 days. These properties can be purchased before the foreclosure auction (pre-foreclosure) or at the foreclosure auction which is a public sale. If no one purchases the property at the foreclosure auction then the property will be returned to the lender that owns the mortgage on the property. Once a property is sold at the foreclosure auction and the foreclosure process is completed, the lender may keep the proceeds to satisfy their mortgage and any legal costs that they incurred. The foreclosing bank has the right to continue to honor the tenants lease (if there is a tenant in the property), but usually as a rule the bank wants the property vacant, in order to sell it more easily.Thus distressed assets (such as foreclosed property or equipment) are considered by some to be worthwhile investments because the bank or mortgage company is not motivated to sell the property for more than is pledged against it. Foreclosure statistics The number of households in foreclosure increased 79 percent in 2007, with about one of every 100 U.S. households at some stage of the foreclosure process, according to the latest numbers from data aggregator Realty trac.
- 14. CHAPTER 2
- 15. PROFILE OF THE ORGANIZATION Earth Infra Venture Pvt. Ltd. is one of the leading marketing companies engaged in offering the customers with effectual residential and commercial real estate services. These commercial and residential properties are planned and laid out by some of the well-known builders and real estate tycoons. We are one of the principal marketing companies engaged in offering best real estate deals to the customers. The selling and renting is done of the properties that are planned by some of the reputed organizations and are marketed under well-known brand names. Earth’s main focus remains to give tailor made packages which suits the requirements of our clients as per his requirements and budgetary constraints. At the same time we ensure that there is a definite level of assurance and back up available.
- 16. Earth Infra Venture Pvt. Ltd. is a progressive, future-focused, Indian real estate company that is at the cutting edge of its industry. Its high levels of integrity and dedication have made the company one of the most respected real estate developers. It is a pioneer in conceiving and executing large sophisticated real estate projects in both commercial and corporate segments, bringing together the unmatched experience & expertise of India's most reputed business conglomerates. From concept to completion, Earth Infra Venture Pvt. Ltd. is into prime real estate development and property management, coordinating a full spectrum of services including site acquisition, design and development, construction, marketing and sales. Earth Infra Venture Pvt. Ltd. today, is the name that is associated with quality and reliability and deals in commercial and residential projects. Earth Infra Venture Pvt. Ltd is involved in number of prestigious projects all over India. We are committed to deliver the projects in time following international construction standards. Our current on-going construction projects are in progress at Noida, Lucknow, Gurgaon, Ghaziabad and Delhi.
- 17. 2.1 ORIGIN OF THE ORGANIZATION EARTH INFRA VENTURE PVT LTD. Is the authorised channel partner of WAVE INFRATECH.It has maintained its salience with leadership in its chosen line of businesses, Earth Infra Venture Pvt. Ltd. is into prime real estate development and property management, coordinating a full spectrum of services including site acquisition, design and development, construction, marketing and sales. EARTH INFRA VENTURE is now currently have several partners. -wave 1st silver tower -wave city -wave estate -wave infratech -wave city centre -wave malls -wave one.
- 18. 2.2 PRESENT STATUS OF THE ORGANIZATION EARTH infra venture is now currently working on the WAVE CITY CENTRE at NOIDA and WAVE CITY NH-24 GHAZIABAD project. WAVE CITY CENTRE at NOIDA The world’s newest destination, in sheer scale exceeding anything ever witnessed by Delhi NCR. And, as the greatest commercial development ever built in the center of a city , its epic ambition is unprecedented. Also unprecedented is our underlying key principle: consideration, an entire project shaped and managed by the dreams, hopes and aspirations of future citizens. In Wave City Center, work and play, study and entertainment, bustle and peace, sport and shopping are balanced in perfect equilibrium. Welcome home.
- 19. Wave City Centre is located at sector 32 and 25A, NOIDA WAVE CITY CENTRE OVER 152 ACRES 4 CRORE sq.ft. BUILT-UP AREA MALL & ENTERTAINMENT HIGH STREET SHOP CONDOMINIUMS PREMIUM SERVICED RESIDENCE PREMIUM OFFICE SPACE 5 & 4 STAR HOTELs 43000 + CAR PARKING 6.5 ACRES INFINITY PARK WELL PLANNED DESIGN AVAILABLE IN SIZES OF 672 sq. and 802sq.ft. OVER 8lac sq. OF DEVELOPMENT.
- 20. SALIENT FEATURES: HIGH RISE TOWER OF OVER 40 STOREYs. FACING THE LANSCAPED PARK OF APPROX 6.5 ACRES. FULLY FURNISHED AND AIR-CONDITIONED. HIGH QUALITY IMPORTED FURNITURE. Wi-Fi CONNECTIVITY. 3 LEVELS OF BASEMENT CAR PARKING. TWO ENTRY POINTS FROM MAIN 45mtrs ROAD FACING INTERNAL 30mtrs ROAD. HIGH END INTERNAL AND EXTERNAL FINISHES. FIXTURES, LINES AND ELECTRONICs WILL BE PROVIDED IN EVERY STUDIO APARTMENT. CONCIERGE SERVICES,CLUB,BUSINESS CENTRE AND HOUSEKEEPING WILL BE PROVIDED ON DEMAND. CLOSE PROXIMITY TO SECTOR 32 METRO STATION. DEVELOPMENTS IN IMMEDIATE VICINITY ICONIC TOWER,CONVENTION CENTRE,4&5 STARS HOTELS,PREMIUM SERVICED ,RESIDENCES,HIGH STREET SHOP CONDOMINIUMS,LIVORK MULTI-USE STUDIO,MALL & ENTERTAINMENT.
- 21. STUDIO APARTMENT is available in two sizes 672sq.ft 802sq.ft WCC SERVICED STUDIO APARTMENTS BLOCK 3E PRICE LIST For Corners & Park Facing S. no. Super area sq. ft. Rate Total 1 672.00 9,750.00 6552000.00 2 802.00 9,750.00 7819500.00 Sector -35 Facing S.no. Super area sq. ft. Rate Total 1 672.00 9,250.00 6216000.00 2 802.00 9,250.00 7418500.00 Down Payment plan under commitment charges scheme S. no. Description Installments cumulative 1 At the time of booking 10% of BSP 10% of BSP 2 Within 45 days of booking 80% of BSP 90% of BSP 3 At the time of possession 10% of BSP 100% of BSP +Other Charges
- 22. Wave City NH-24,GHAZIABAD Wave Infratech presents Wave City. Smart cities can be identified (and ranked) along six main axes or dimensions. These axes are: a smart economy; smart mobility; a smart environment; smart people; smart living; and, finally, smart governance. These six axes connect with traditional regional and neoclassical theories of urban growth and development. In particular, the axes are based - respectively - on theories of regional competitiveness, transport and Information and Communication Technologies (ICT) economics, natural resources, human and social capital, quality of life, and participation of citizens in the governance of cities. WAVE CITY is located at NH-24, GHAZIABAD
- 23. A city can be defined as 'smart' when investments in human and social capital and traditional (transport) and modern (ICT) communication infrastructure fuel sustainable economic development and a high quality of life, with a wise management of natural resources, through participatory governance. With this thought in mind, Wave City has partnered with world renowned giant IBM, in developing a living experience that is beyond compare, an experience that can truly be called "Smart". In pre-paid energy meters, GPS tracked bus system, Fibre Optic Connectivity throw out the project, Online Smart City portal that gives you information about everything, right from the delay in the bus service which you take to work to telling you about the parking slot availability in the neighbourhood mall, Water recycling plants that recycles grey water for re-use, Rain water harvesting to ensure minimum amount of pressure on the ecosystem and Central Command Centre that manages everything from traffic situations, CCTV surveillance to following SOP's in times of emergency, we are developing a city that would take care you, your home, your neighbourhood, your loved ones and in process of itself, to ensure the most convenient and smart living environment. WAVE CITY is spread across an area of 4500 acres , wave city is all set to usher in a new era of contemporary living. with its world-class design and a line-up of most modern and thoughtful facilities, wave city is indeed the only place in Delhi and NCR that truly lives up to a 21st century lifestyle. Designed on IBM's smart city concept. The amenities it offers range from beautiful floors and lavish conominiums to the best medical care, primary education to universities, shopping malls to luxurious landscaped greens and from a well planned BRT system to an expansive golf course.
- 24. SALIENT FEATURES POSSESSION OF RESIDENTIAL PLOTS TO START BY EARLY 2013 CONSTRUCTION OF BUILT-UP FLOORS IN FULL SWING DIRECT CONNECTIVITY FROM NH-24 LEGALLY ACQUIRED,COMPLETELY LITIGATION FREE PROJECT DESINGED ON IBM SMART CITY CONCEPT MASTER PLANNING BY BENTEL ASSOCIATES FROM SOUTH AFRICA WORLD CLASS SPORTS ACADEMY JUST 30 MIN FROM DELHI AND 10 MIN FROM INDRAPURAM LUSH GREEN OPEN SPACES INTERNATIONAL STANDARD 18 HOLE GOLF COURSE
- 25. PRICE LIST AFFORDABLE GROUP HOUSING AT WAVE CITY NH-24 Price list under Construction Linked Payment Plan S. Category Floor Approx Area Price 1 1BHK 580 Sq Ft 2550 1 2 BHK 808 SqFt 2500 1 3 BHK Approx 1050 Sq Ft 2450 Note: Rates will be revised as & when required Rates of 3BHK units is applicable for first 50 bookings only. Other Charges S. Particulars Charges 1 Open Car Parking mandatory with 1BHK Rs. 100000 2 Covered Car Parking mandatory with 2 BHK Rs. 200000 3 Peripheral & Infrastructure Development Charge Rs. 55/- Sqft. 4 Interest Free Maintenance Security Rs. 25/ Sqft. 5 Power Backup (1KVA Mandatory) Rs. 20000/- KVA 6 Club Membership mandatory Rs. 50000/- PLC Charges S. Particulars Charges/Sft 1 Park Facing 50 2 Corner 25 3 GF 150 4 1st 125 5 2nd 100 6 3rd & 4th 75 7 5th & 6th 50 8 7th & 8th 25
- 26. Payment Plans A) Down Payment Plan (With 10% Rebate*) S Particulars Installments 1 At the time of booking 10% 2 Within 45 days from the date of booking 85% (with 10% rebate on 85% down payment amount) 3 On offer of possession 5% Note: PLC will be clubbed with the basic sale price B) Construction linked Payment Plan S Particulars Installments 1 At the time of Booking 10% 2 Within 60 days from date of Booking 10% 3 Within 120 days from the date of Booking 7.50% 4 On start of Excavation 7.50% 5 On Casting of 2 nd floor roof slab 10% 6 On Casting of 4 th floor roof slab 10% 7 On Casting of 8 th floor roof slab 10% 8 On Casting of 10 th floor roof slab 10% 9 On Casting of 14 th floor roof slab 10% 10 On Commencement of Internal Plaster 5% 11 On Commencement of External plaster 5% 12 On offer of possession 5% Note : 1. The development linked stages can be called for payment in any sequence irrespective of the sequence mentioned hereinabove 2. PLC will be clubbed with the basic sale price
- 27. LAYOUT PLAN OF 1BHK FLATs 578sq.ft 2BHK FLATs 802sq.ft
- 28. 2.3 PRESENT STATUS OF THE ORGANIZATION EARTH INFRA VENTURE is now working on its wave city and wave city centre projects. EARTH INFRA VENTURE is now know in the best channel partner of wave infra-tech and give real estate a new level. EARTH INFRA VENTURE had an experienced team of employees(manager, sales manager, sales executives, telle-caller) who are always devoted to their work and make a peaceful environment always in the organisation to work efficiently which lead in generating new customers always. EARTH INFRA VENTURE timely organised sales promotion techniques and organised events and canopy to promote their current project in the market which helps the people to know about their projects in the current market.
- 29. CHAPTER-3
- 30. DISCUSSION ON TRAININGS 3.1 OBJECTIVE OF THE STUDY To present an overview of the Real Estate Industry. To critically analyse the Future Trends in Real Estate Industry. To critically evaluate the position and prospect of major players in Real Estate Industry. To enquire about the future prospect of Real Estate Industry. To know the customer query and how to solve them. 3.2 DESCRIPTIONS OF LIVE EXPERIENCES This is one of the primary things that are required within the company. During my visits to different Company, I came across that there is no awareness of the company in the form of posters, stands and other related things. One thing that I would like to recommend would be the introduction of more promotional activities so as to generate more revenues for the company. Company can introduce more-- – Schemes – Get together’ for channel partners – Brand recognition in the market – To Keep more inventories – Advertisement in Institutional Areas
- 31. Although every effort has been in to collect the relevant information through the sources available, still some relevant information could not be gathered. Busy Schedule of Concerned Executives: The concerned executives were having very busy schedule because of which they were reluctant to give appointment. Time: The time duration could not provide ample opportunity to study every detail of the company. Unawareness: Executives were unaware of many terms related to same while asking to them. Confidential Information: As the company on account of confidential report has not disclosed some figures. Moreover, in some cases separate accounts of division are not separately maintained thereby, leading to restrictions in study.
- 32. CHAPTER 4
- 33. Real estate position in india- The real estate sector in India has come a long way by becoming one of the fastest growing markets in the world. It is not only successfully attracting domestic real estate developers, but foreign investors as well. The growth of the industry is attributed mainly to a large population base, rising income level, and rapid urbanization. The cities and towns in India are expanding and the space requirement for education, healthcare and tourism provides opportunities in the real estate sector. The industry in India contributes about five percent to the country's Gross Domestic Product and, in the next few years, this contribution is expected to rise to six per cent. The total revenue generated in fiscal 2011-12 stood at around 314 million USD. After undergoing corporatisation and professionalization, today real estate is recognized as one of the key sector contributing to the country's economic development. The Union Budget 2013 on the other hand is looking forward to improving the sector sentiment further and at the same time re-stimulates its growth.
- 34. Real estate plays an important role in the Indian economy, as it is the second largest employer after agriculture. The size of the Indian real estate market is expected to touch 180 billion USD by 2020..
- 35. Interest of real estate investment in young generation – Real estate seems to be the hottest investment instrument for urban youth in India, with a whopping 85% of those surveyed inclined to put their money into immoveable on hopes of higher and guaranteed returns. "Over 85% of urban working class prefer to invest in real estate saying it is likely to fetch them guaranteed and higher returns," says a survey conducted by industry body Ascham. Those surveyed also said they cautiously stay off from investing in gold, stocks and mutual funds as these instruments are found to be riskier, the survey said. A majority of urban youth surveyed believe that investing in the yellow metal is not as profitable as in real estate since they expect gold prices to fall.
- 36. Besides, global slowdown and the weak rupee have started casting a shadow on stocks, as many corporations are rationalising the salary structure of their employees with an emphasis on cost cutting which dampens the spirit of investment in the capital markets. However, a few respondents still chose to invest in stock markets, gold and mutual funds. The maximum concentration of real estate investments from urban working class and professionals is seen towards residential properties in emerging Tier-II and Tier-III cities. These include Jaipur, Delhi, Rishikesh, Haridwar, Nainital, Chandigarh, Dehradun, Sonepat, Panipat, Pune and Nasik, it said. Most respondents felt that investments in real estate, residential and commercial properties are found to be lucrative and much safer since they are completely insured in contrast to those in gold, stocks and mutual funds.
- 37. Over 62% respondents, especially professionals, chose real estate properties in Tier-I cities like Mumbai, Delhi, Kolkata, entire Northern Capital Region (NCR), Hyderabad, Bangalore, etc for gaining maximum returns. However, 78% of those working professionals with double-income, who bought a house in a metro city, want to invest in their home town for a second home, the survey added. Some interesting insights into residential real estate trends and consumer preferences across cities by ICICI HFC Across cities, the preference is of premium suburbs with supportive supply coming in only in Mumbai Premium suburbs get preferred over other locations owing to well-developed infrastructure supported by commercial activity in close proximity Delhi and Mumbai seem to have a potential demand for mass suburbs, far surpassing the current supply, on account of better infrastructure and connectivity to the business districts The mass suburbs in the other cities are still in their initial stages with infrastructure and connectivity being the core issues 2-3 BHK remain favourite across all the cities
- 38. There seems to be oversupply in > 3BHK segment Mumbai is the only market with substantial 1-1.5 BHK demand which remains largely unmet Instead, Mumbai seems to have a huge pipeline of large premium properties without adequate demand As compared to the other cities, the Bangalore residential supply seems to be aping consumer demand. Vis-à-vis the other markets, the Bangalore consumers are relatively more aspirational Chennai has a fair distribution of population across income classes; Bangalore has a higher concentration of HIG Median age of home seekers has been declining across all cities End use of the property for self occupation indicates that genuine buyers are still there in market and they will certainly buy if right product as per their expectation is available Children play area and inverter backup seem to have become a hygiene factor for any residential development A bus service and modular kitchen are the distinguishing amenities for LIG segment The differentiating amenities in case of HIG are swimming pool, health club and club house
- 39. It seems that new launches have considerably slowed down across the southern cities viz., Bangalore and Chennai and builders are concentrating more on completion and absorption of existing supply While consumers in the Northern and Western markets have exhibited apprehension on project delivery, consumers in Southern markets are still willing to invest in properties at launch stage thereby indicating relative stability in the Southern residential market
- 40. Objective of research To know the working analysis and growth of real estate company in India. To know the current challenges faced by real estate company. To know the consumer behavior while investing in real estate company.
- 41. interest of people in real estate investment Based on the response of 300 people following table has been made- S.no TYPE INTERESTED NOT INTERESTED 1 Flats 110 190 2 Villa 70 230 3 Plots 90 210 4 Commercial area 30 270 0 50 100 150 200 250 300 1 2 3 4 interested not interseted
- 43. DATA COLLECTION METHOD There are two type of data collection method Types of Data collection method- Primary Data Secondary Data PRIMARY DATA-Primary data means data that are collected by different techniques likes Questionnaire, Depth interview, Surveys, Schedules. Sources of Primary data:- CANOPY. Online advertisement. Office visit. Data obtain by the people.
- 44. SECONDARY DATA-Secondary data means data that are already been collected and analyzed by someone else Sources of Secondary data:- Telle calling Refrerences Data from other company. Unpublished Data: Data may be obtained from several companies, organizations, working in the same areas. Data Collected by Industry Associations. Journal/ Newspapers etc.: Some newspapers/ Journals collect and publish their own data, e.g. Indian Journal of economics, economist, Economic Times.
- 45. SUMMARY OF LEARNING’S EXPERIENCE • Non-commission revenues will become critical to the profitability formula. • More and more menu driven services will be offered. • Almost every aspect of the transaction will be part of an electronic. • Electronic commerce will require standardization. • Standards will cause commodization. • The unconnected agent will become the endangered species. • Predictability/accountability will be the keys. • The agent will be reevaluated. • The Internet business will be a significant market share (25-Interactivity on the Internet will be the norm.
- 46. • A significant share of transactions will be managed from point of contact. • Meeting the customer’s definition of value will be Managed transactions will use designated service providers at all levels of the transaction. • Marketing resources will be invested where they generate proven results. • Range of products and services will be limited only by imagination. • The real estate industry should prepare for an increasingly technology-driven environment in which empowered consumers drive the mark competitive dynamics. • A plethora of new entrants will emerge to capitalize on technology enabling new business models and value propositions.
- 47. CAREERS IN REAL ESTATE The real estate profession has expanded and offers one of the widest career selections in the business world today. Helping people buy and sell homes, office buildings, industrial property and corporation farmland, property management, land development, mortgage banking, urban planning, real estate counseling, appraisal and research are all aspects of a career in real estate. The "voice for real estate" and the industry's national professional organization is the National Association of Realtors.
- 48. ADVANTAGES AND REWARDS OF A CAREER IN REAL ESTATE A career in real estate provides flexibility and freedom to set your own pace. Income directly reflects your efforts, with no limits on what astute, hard-working men and women can earn. Successful people in real estate are goal-oriented, persevering, self-motivated, ambitious and people-oriented. The rewards of a real estate career are a potential for high earnings, status in the community, autonomy, time freedom, helping people, the intellectual challenge and the satisfaction from those accomplishments. Working in real estate allows for independence and choices of environment in which to work, such as affiliation with a large or small firm as a listed salesperson.
- 49. With more experience and upon passing of an additional exam, becoming a real estate broker is the next step. Brokers can own their own businesses and employ other salespeople. TYPES OF CAREERS IN REAL ESTATE: Careers in Residential Brokerage – Helping people buy and sell homes, is one of the most important and basic services a real estate agent performs. Agents are experts in the process of buying and selling property, financing, government programs, for example. The real estate agent's expertise facilitates the transaction, saving clients time, trouble and money. Real estate professionals need to have a thorough knowledge of such areas as real estate law,
- 50. local economics, and fair housing laws, types of financing, mortgages and government programs. Careers in Commercial Brokerage – Commercial brokers specialize in income-producing properties, such as apartment and office buildings, retail stores and warehouses, shopping centers and industrial parks. To understand and explain why the properties are good investments, commercial brokers need to be aware of the growth possibilities of the area where the property is located, current income tax regulations and purchasing arrangements that give the buyer a greater return on investment. Commercial brokers may also have to arrange financing.
- 51. Careers in Industrial and Office Brokerage – Industrial and office brokers specialize in the developing, selling or leasing property used for industry or manufacturing. Brokers need to understand different types of industries and determine such variables as transportation, proximity to raw materials, water and power, labor availability and local building, zoning and tax laws.
- 52. Careers in Property Management – The property manager's primary function is to maintain the property in order to produce the highest possible financial return over the longest period of time. More importantly, the property manager is responsible for protecting the owner's investment. Managed commercial properties are likely to be office buildings and shopping centers. Residential properties might be apartment buildings, apartment developments, condominiums and groups of homes owned by a single investor. Property managers usually work for real estate firms. However, other opportunities are found in the real estate department of banks and trust companies. For large housing and commercial developments, managers are often expected to maintain an office or residence on the premises and work
- 53. with only one enterprise. When living onsite, property managers can expect to be on call for emergencies at all times, beyond maintaining standard working hours. Careers in Land Development – Land development is one of the most important and challenging specialties in real estate today. Developers turn land into profitable, marketable developments - residential, commercial or industrial. Site selection is the first decision developers must make. Planning and layout is handled only after the developer determines the need for a project. Before the actual building can begin, developers must first analyze all costs and arrange the financing. Then, they contract for the physical structures and supervise
- 54. construction. Finally, developers promote the finished development to the prospects for whom it was planned. Careers in Farm and Land Brokerage – Land brokers deal in land for farming and acquisition of rural land by cities for residential, commercial and industrial expansion. Success as a land broker depends on how accurately the income potential of the property can be established. Brokers need a good working knowledge of various factors which determines a farm's capacity to produce, including agricultural knowledge and information such as market centers and transportation facilities.
- 55. Careers in Real Estate Appraising – Real estate appraisers determine the value of properties. Real estate is appraised to determine many types of values - assessed value for tax purposes, investment value or present value for a potential investor, "book" value for accounting purposes, rental value for income projections and insurable value. Appraisers need to know acceptable principles of appraisal and related information. They need to have practical experience, technical education, good judgement and some knowledge of mathematics, accounting and economics.
- 56. Careers in Urban Planning – If you would like to improve the environment and the quality of people's lives, becoming an urban planner may fulfill your career objective. Urban planners work with local governments and other civic groups to anticipate their city's future growth. They propose physical changes to accommodate this growth. Not many career guidelines exist for urban planning, but broad general experience is important. Some colleges are now offering degrees in urban planning.
- 57. Careers in Real Estate Counselling – Real estate counsellors are in the business of giving advice about property. They are the experts others seek when they want answers to real estate questions. Counsellors must know every phase of the real estate business because they use that knowledge in nearly every consultation. Often they will be asked about income opportunities and productive uses of different kinds of properties. There are relatively few brokers specializing in counseling, but the field will grow as investors and owners realize the value of expert advice in developing property and improving income. While accumulating experience in other real estate specialties, people planning to become real estate counsellors also continue to study in continuing education programs in financial management.
- 58. Careers in Real Estate Research – Real estate researchers contribute to the decisions of many other real estate specialists. Brokers, property managers, appraisers, financing experts and counsellors all depend on data provided by research. Research can be divided into two main categories - physical and economic. Physical research means studying buildings and structures of all types, especially in terms of the selection and efficient use of construction materials. Economic research consists of determining reliable answers to questions like, "How many people hope to buy homes next year?" - "What will it cost them to borrow mortgage money?" and "What percentage of the nation's homes are sub-standard?"
- 59. BARRIERS TO REAL ESTATE INDUSTRY First, barriers for market access will be removed this year. According to INDIA’s WTO commitment, wholly foreign-funded companies will be allowed to enter its real estate market within three years after its WTO accession, and Sino-foreign cooperative and joint venture real estate companies given national treatment. Following this principle, Delhi has relaxed the restrictions for overseas investment to enter the city’s property market. Though overseas investment in the sector appeared mostly in the form of a joint venture, some foreign companies still plan on setting up wholly owned firms in India.
- 60. Second, the 2008 Olympic Games to be held in Beijing has spurred the development of the city’s real estate industry. Seeing the event as an opportunity, many foreign companies came to seek cooperative partners in property development, including those from the United States, the Republic of Korea and Germany. Third, the increasingly mature market has helped boom the sector. Delhi has also witnessed the improvement of the financing market and opening of land transactions, both serving as important conditions for the sound development of its real estate market. Early this year, Delhi issued a new regulation on the use of land for commercial projects. According to the regulation, the former practice of transferring the right to
- 61. use land on the basis of agreement is replaced by auction, public bidding and other open ways, which is seen as a tangible step toward the establishment of an open, transparent and regular real estate market. The ongoing designing of the overall layout of Delhi will be completed at the end of this year. By then more opportunities for overseas investors will present themselves. The design is a new blueprint for the development of Delhi .
- 62. LIMITATIONS- Although every effort has been in to collect the relevant information through the sources available, still some relevant information could not be gathered. Busy Schedule of Concerned Executives: The concerned executives were having very busy schedule because of which they were reluctant to give appointment. Time: The time duration could not provide ample opportunity to study every detail of the company. Unawareness: Executives were unaware of many terms related to same while asking to them.
- 63. Confidential Information: As the company on account of confidential report has not disclosed some figures. Moreover, in some cases separate accounts of division are not separately maintained thereby, leading to restrictions in study.
- 64. CHAPTER 5
- 65. Q.1. Have you purchased any flat or commercial shop from Real Estate? ans. Q.2. From which Real Estate have you purchased? ans. Q.3. Have you purchased wave infratech? ans. Q.4. How are the services you get from wave infratech? ans. Q.5. Are they provide good facility comparison to others? ans. Q.6. Are the Banks provide loan against flat easily? ans.
- 66. Q.7. Have you got good environment around the flat? ans. Q.8. According to you are you satisfy with wave infratech? ans. Q.9. Have you purchased another flat from any Real Estate? ans. Q.10. If yes, then from which company? ans.
- 67. CONCLUSION
- 68. CONCLUSION The Indian real estate sector continues its steady progress with overall sales activity going up significantly in the past six months. And the driving factor behind the entire process has been the information technology (IT) sector which has contributed considerably to the demand side. Moreover, the nature of demand has also undergone a complete transformation. From small floor plates of 1,000 sq ft to 5,000 sq ft, the demand has shifted to large contiguous floor plates of 6,000 sq ft to as high as 20,000 sq ft. This has forced builders/developers to offer large floor plates as office space in case of both lease and capital values. "In a buyer's market, sellers will have to offer products as per the requirement of buyers. In this market, only those builders catering to the need-based demand can succeed,.
- 69. Most of the metros are today gearing up to meet the demand for large floor plates in accordance with the international trend. No longer is work station space per person limited to a mere 50-70 sq ft. Most of these IT companies are looking out for larger office spaces to meet their 100-120 sq ft per person work station need. Partho Gupta, a Mumbai-based software consultant, states that the bottomline is to enhance the productivity level of staffs by providing a conducive working ambience. "The nature of job in this sector is such that one needs a particular kind of surrounding for achieving an optimal efficiency level,. According to a Cushman & Wakefield report, many multinationals are viewing Bandra-Kurla complex as the preferred destination for large commercial space requirement as there are limited options for large contiguous spaces of comparable quality in south, central and north Mumbai. "Earlier it was the price (capital value & rental) factor that governed the relocation process to a large extent. However, now in the last one year or so, companies are relocating their offices in search of large floor spaces," opines Mr Ashok Kumar, director, Brooke International. Never before the industry had experienced this kind of demand for large floor plates for office spaces.
- 70. Adding to this demand is the recent emergence of dotcom start-ups. According to an estimate, in the past eight months, one out of four transactions belonged to dotcom or net-related business. Even as the initial hype has cooled down considerably, these dotcom ventures have played a big role in boosting the demand. Aashish Velkar, director, Cushman & Wakefield is still very bullish about the dotcom-driven demand. "On the positive side, mergers and acquisition have already started in the dotcom business. This will provide consolidation to the entire business and help these companies sustain in the longer run. According to Velkar, once again Bangalore is emerging as the favourite IT destination if one goes by the transactions that have taken place in the past three months.
- 71. RECOMMENDATIONS
- 72. RECOMMENDATIONS Promotional activities- This is one of the primary things that are required within the company. During my visits to different Company, I came across that there is no awareness of the company in the form of posters, stands and other related things. One thing that I would like to recommend would be the introduction of more promotional activities so as to generate more revenues for the company. Company can introduce more-- – Schemes – Get together’ for channel partners – Brand recognition in the market – To Keep more inventories – Advertisement in Institutional Areas Focus more on “b” and “c” category Companies - This is also one of the prime things that are required. With around 80% of the revenues coming from less than 20% of the Companies, more focus should be given on ‘b’ and ‘c’ category companies.’ A’ category agents are
- 73. said to be the agents who contribute more than Rs.50000 of revenues per month. Companies should focus more on ‘b’ and ‘c’ category clients so that more of these clients can be converted into ‘a’ category. Co-ordination among different channels-With agency office in a different building and no direct control over the district operations, transparency between different channels is lacking. With the plan for executives that I have suggested above, there could be more transparency that can come in the overall operations of the NCR region. Different commission slabs for different channels- With commissions being one of the prime motives for the sales Executive to do business with different companies, more and more emphasis should be given on the commissions that are rendered to the agents. Very limited corporate tie ups-This should be one of the most important thing that should be on the agenda for the travel category. A corporate tie-up can easily deliver a business of more than 50000 per month. Other than that, the contract is on a long term basis. This therefore helps in getting an easy business for the company.
- 74. Therefore, from my point of view, more emphasis should be given on this category of business as well.
- 75. BIBLIOGRAPHY
- 76. BIBLIOGRAPHY- BOOKS • Kotler, Philip and Armstrong, Graw - Principles of Marketing, Pearson Education, New Delhi 2007. • Kotler, Philip - Marketing Management: Analysis, Planning, Implementations and Control, Pearson Education, New Delhi. 2003, 11th ed. • Sharma J K - Business Statistics (Pearson Education) • Kothari C.R. – Research Methodology DAILYS & JOURNALS • Business World • Business Today • The Economic Times
- 77. WEBSITES 1. www.google.com 2. www.earthinfraventure.com 3. www.indianrealestateforum.com 4. www.wavecitycenter.com 5. www.wave-city-ghaziabad.com
- 78. QUESTIONNAIRE Name………………………….. Age……………………………. Address……………………… Contact No……………………. Q.1. Have you purchased any flat or commercial shop from Real Estate? (a) Yes (b) No Q.2. From which Real Estate have you purchased? (a) WAVE infratech (b) Unitech (c) DLF (d) Ansal Plaza Q.3. Have you purchased wave infratech? (a) Yes (b) No Q.4. How are the services you get from Wave infratech? (a) Excellent (b) Better (c) Poor Q.5. Are they provide good facility comparison to others? (a) Yes (b) No Q.6. Are the Banks provide loan against flat easily? (a) Yes (b) No (c) Can’t Say
- 79. Q.7. Have you got good environment around the flat? (a) Yes (b) No (c) Can’t Say Q.8. According to you are you satisfy with wave infratech? (a) Yes (b) No Q.9. Have you purchased another flat from any Real Estate? (a) Yes (b) No Q.10. If yes then from which (a) wave infratech (b) Unitech (c) DLF (d) Ansal Plaza.
- 80. Summer Training Appraisal Student’s Name: Programme: You are requested to provide your opinion on the following parameters. Outstanding Good Satisfactory Unsatisfactory A B C D 1. Technical knowledge gathered about the industry and the job he/she was involved. 2. Communication Skills: Oral / Written / Listening skills 3. Ability to work in a team 4. Ability to take initiative 5. Ability to develop a healthy long term relationship with client 6. Ability to relate theoretical learning to the practical training 7. Creativity and ability to innovate with respect to work methods & procedures 8. Ability to grasp new ideas and knowledge 9. Presentations skills 10. Documentation skills 11. Sense of Responsibility 12. Acceptability (patience, pleasing manners, the ability to instil trust, etc.) 13. His/her ability and willingness to put in hard work 14. In what ways do you consider the student to be valuable to the organization? Consider the student’s value in term of: (a)Qualification (b)Skills and abilities (c)Activities/ Roles performed 15. Punctuality Any other comments ________________________________________________. Assessor’s Overall rating Assessor’s Name: Designation: Organization name and address: Email id: Contact No: