RESEARCH PROJECT REPORT

ON
MARKETING STRATEGY OF DLF IN
REAL ESTATE

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

MR. REJI JOHN

Submitted By
SACHIN BISHNOI
Enrolment Number
1704201196
MBA 2017-19

SCHOOL OF BUSINESS GALGOTIAS UNIVERSITY

1
 Certificate

This is to certify that the project report “MARKETING STRATEGY OF DLF IN REAL

ESTATE” has been prepared by Mr. SACHIN BISHNOI under my supervision and

guidance. The project report is submitted towards the partial fulfilment of 2 year, Full time

Master of Business Administration.

MR. REJI JOHN

Name & Signature of Faculty

Date

2
 Declaration

I, SACHIN BISHNOI Roll No. 1704201196, student of School of Business, Galgotias

University, Greater Noida, hereby declare that the project report on “MARKETING
STRATEGY OF DLF IN REAL ESTATE” is an original and authenticated work done by
me. I further declare that it has not been submitted elsewhere by any other person in any of
the institutes for the award of any degree or diploma.

Name and Signature of the Student

Date

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 Acknowledgement

With immense please we are presenting “MARKETING STRATEGY OF DLF IN

REAL ESTATE” Project report as part of the curriculum of. We wish to thank all the
people who gave us unending support.

I express my profound thanks to Director and MR. REJI JOHN project guide and
all those who have indirectly guided and helped us in preparation of this project.

We also like to extend our gratitude to all staff and our colleagues of College of
Management, who provided moral support, a conductive work environment and the much-
needed inspiration to conclude the project in time and a special thanks to my parents who
are integral part of the project.

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 TABLE OF CONTENT

Serial Particulars Page

Number Number

1.0 Introduction 7
1.1 Industry profile 8

1.2 Company Profile 14

2.0 Literature Review 32

3.0 Research methodology 38
3.1 Objective 39

3.2 Research Design

3.3 Sampling Design

3.4 Data Collection Design 40

4.0 Data Analyses & Interpretation 41

5.0 Findings, Conclusions And 59
Suggestions
5.1 Findings

5.2 Conclusion

5.3 Suggestions

5.4 Limitation

6.0 Bibliography, questionnaire 65-71

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 Abstract
The time one talks about stock market, another word also clicks and that is risk.
People have lost their millions in this stock market. This project has been initiated
for the purpose of acquainting me, gaining in depth knowledge of all the issues
concerning about finding out the Marketing strategy
This work is a detailed study of marketing and competitor. It’s about the ways in which
investors can invest in market. I have tried to explain the entire market trading in detail
with the help of live examples. All these calculations give a better insight to my work. This
risk arises due to number of reasons, which I have tried to put across. The focus in this
project is on Marketing Analysis of five different firms from infrastructure Industry,
viz. GMR, DLF, UNITECH, RIIL, and JP ASSOCIATE.

6
INTRODUCTION

7
Introduction

The real estate sector is one of the most globally recognised sectors. In India, real estate is
the second largest employer after agriculture and is slated to grow at 30 per cent over the
next decade. The real estate sector comprises four sub sectors - housing, retail, hospitality,
and commercial. The growth of this sector is well complemented by the growth of the
corporate environment and the demand for office space as well as urban and semi-urban
accommodations. The construction industry ranks third among the 14 major sectors in terms
of direct, indirect and induced effects in all sectors of the economy.
It is also expected that this sector will incur more non-resident Indian (NRI) investments in
both the short term and the long term. Bengaluru is expected to be the most favoured
property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa,
Delhi and Dehradun.

Market Size

The Indian real estate market is expected to touch US$ 180 billion by 2020. The housing
sector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP).
In the period FY2008-2020, the market size of this sector is expected to increase at a
Compound Annual Growth Rate (CAGR) of 11.2 per cent. Retail, hospitality and
commercial real estate are also growing significantly, providing the much-needed
infrastructure for India's growing needs.
The private equity investments in real estate increased 26 per cent to a nine-year high of
nearly Rs 40,000 crore (US$ 6.01 billion) in 2016.
Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high
demand for office space in recent times. The office space absorption in 2016 across the top
eight cities amounted to 34 million square feet (msf) with Bengaluru recording the highest
net absorption during the year. Information Technology and Business Process Management
sector led the total leasing table with 52 per cent of total space uptake in 2016. Mumbai is
the best city in India for commercial real estate investment, with returns of 12-19 per cent
likely in the next five years, followed by Bengaluru and Delhi-National Capital Region
(NCR).

Investments

The Indian real estate sector has witnessed high growth in recent times with the rise in
demand for office as well as residential spaces. According to data released by Department
of Industrial Policy and Promotion (DIPP), the construction development sector in India has
received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 24.28 billion in
the period April 2000-December 2016.

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 Some of the major investments in this sector are as follows:

 Canada Pension Plan Investment Board (CPPIB), the Canadian pension asset
manager, has entered into a non-binding agreement with Island Star Mall
Developers (ISML), a subsidiary of Phoenix Mills, to acquire up to 49 per cent in
ISML in the next three years.
 Altico Capital, a non-banking finance company (NBFC), has teamed up with
American private equity firm KKR & Co LP to invest Rs 435 crore (US$ 65.25
million) in a 66-acre residential township, being developed by SARE Homes in
Gurgaon.
 Gurgaon-based property search aggregator Square Yards Consulting Pvt Ltd has
raised US$ 12 million from the private equity arm of Reliance Group for
strengthening its team and expanding its presence to more than 25 countries.
 Rising Straits Capital plans to raise US$ 100 million to capitalise its real estate-
focused non-banking financial company (NBFC), Rising Straits Finance Co. Pvt.
Ltd.
 A joint venture between Dutch asset manager APG Asset Management and real
estate asset platform Virtuous Retail, has acquired a portfolio of three shopping
malls for US$ 300 million, and has committed an additional US$ 150 million as
equity capital to expand the portfolio.

Government Initiatives
The Government of India along with the governments of the respective states has taken
several initiatives to encourage the development in the sector. The Smart City Project,
where there is a plan to build 100 smart cities, is a prime opportunity for the real estate
companies. Below are some of the other major Government Initiatives:

 The Ministry of Housing and Urban Poverty Alleviation has sanctioned the
construction of 84,460 more affordable houses for urban poor in five states, namely
West Bengal, Jharkhand, Punjab, Kerala and Manipur under the Pradhan Mantri
Awas Yojana (Urban) scheme with a total investment of Rs 3,073 crore (US$ 460
million).
 The Cabinet Committee on Economic Affairs (CCEA) has approved various
measures to revive the construction sector, putting in place a mechanism to release
funds stuck in arbitration awards to revive stalled projects.
 Brihanmumbai Municipal Corporation (BMC) has introduced a single-window
clearance for construction which will cut the time taken for getting approvals for a
building project and lead to correction in prices of residential property, thereby
giving a fillip to Mumbai realty.
 The Securities and Exchange Board of India (Sebi) has proposed easier regulations
for real estate investment trusts (REITs), such as raising the cap of investment of
REITs’ assets in under-construction projects from 10 per cent to 20 per cent, in
order to attract the interest of developers, and also plans to relax the rules for foreign
fund managers to relocate to India.
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Major Players in Real Estate

Housing Development & Infrastructure Limited (HDIL) has

established itself as one of India’s premier real estate
development companies, with significant operations in the
Mumbai Metropolitan Region. HDIL is a public listed real
estate company in India with shares traded on the BSE &
NSE Stock Exchanges. HDIL group has completed more than
100 .

Started in 1958 by Founder and Chairman, Shri Jaiprakash

Gaur, the Jaypee Group is the third largest cement producer in
the country. Currently, the Jaypee Group functions through its
18 subsidiaries which are present in 14 states all over the
country,

DLF Ltd DLF has over 60 years of track record of sustained

growth, customer satisfaction, and innovation. The company
has 314 msf of planned projects with 52 msf of projects under
construction. DLF's primary business is development of
residential, commercial and retail properties.

Established in 1972 by a group of technocrats, Unitech Ltd is

one of India’s leading real estate players. It began as a
consultancy firm for soil and foundation engineering and has
grown to have the most diversified product mix in real estate,
comprising of world-class commercial complexes, IT/ITes
parks, SEZs, integrated residential developments..

Established in 1990, Godrej Properties is one of the leading real

estate development companies in India. The Mumbai-based
organisation is the first real estate company to receive ISO
certification. With projects that span across the country, the
company's upcoming development covers 83 million square feet (sq
ft).

10
Overview of the real estate sector in India

 Sales of residential property declined in 2013 in all metro cities, particularly in the
National Capital Region (NCR), Mumbai and Bengaluru.
 An increase in supply, not commensurate with demand levels, led to an oversupply
situation in most cities.
 The Government of India developed the draft Real Estate Regulation and
Development Bill, 2013, a policy measure to bring in increased transparency in the
sector and protect customer interest.
 In the commercial segment, NCR, Mumbai and Bengaluru continue to be the leading
cities accounting for more than 75% of the entire space getting absorbed in the
country in the last two to three years’ time frame.
 Introduction of REIT is likely to have a positive impact on the retail market
segment.
 The retail real estate market appeared to be promising despite global concerns and
economic uncertainty.
 Norms for FDI in multi-brand retail has been eased to attract global retailers.
 Proposal worth US$132 million (INR810 crores) was cleared by the Foreign
Investment Promotion Board (FIPB) with regards to single brand retail in the last 6–
7 months.
 Domestic travel spends generated approximately 81% of the direct travel and
tourism GDP, with domestic tourist visits (1,036 million) registering an increase of
close to 20% from 2011.
 International tourist arrivals were recorded at 6.6 million in 2012, an increase of
4.3% over the previous year. Foreign Exchange Earnings also increased by 7.1%
over the same period.
 According to World Travel & Tourism Council’s (WTTC) estimates, domestic
travel spending will grow by 6.1%, while international visitor spending will increase
by 8.7% per annum in 2013–15.
 In 2012–13, the SEZ sector contributed 29% of India’s total exports of
approximately US$ 266 billion (INR16.35 lakh crores).
 The development of Delhi Mumbai Industrial Corridor (DMIC) has set a new
precedent to the development of the logistics and warehousing sector.

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Current Scenario of the Real Estate Market in India

Commercial real estate sector is in boom in India. In the last fifteen years, post
liberalization of the economy, Indian real estate business has taken an upturn and is
expected to grow from the current USD 14 billion to a USD 102 billion in the next 10
years. This growth can be attributed to favorable demographics, increasing purchasing
power, existence of customer friendly banks & housing finance companies,
professionalism in real estate and favorable reforms initiated by the government to attract
global investors

Characteristics of the Real Estate Market in India

• Realization of large commercial

projects
Growing Market Demand
• IPOs by developers
• Gradual organization of the markets in
the Tier I cities

• Emergence of transparency and

liquidity
Greater availability of
• Entry of international real estate
information
consultancies
• Governing legal framework relaxed
• Competitive pricing

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Risks involved in the Real Estate Investment Market

Liquidityrisk
The real estate investment market is still in its infant stage. The time required for liquidity
of real estate property can vary depending on the quality and location of the property.

Regulatory risks
In terms of property ownership, permission from the Reserve Bank of India is required
for foreign investors. For capital repatriation, investors need to apply for approval from
the RBI, and foreign direct investment is limited to a limited set of opportunities (e.g.
townships). The REMFs work within the SEBI framework. Being a developing and
growing sector, the rules, regulations and legalities demonstrate frequent changes,
making it seem as a cumbersome investment option to the investors.

Property market transparency risk

The Indian property market has low transparency when compared to the more mature and
developed real estate markets. Although market transparency has improved, reliable and
consistent information on the Indian property market is still not easily available. There
are also more professional due diligence and valuation institutions needed. This holds
true even for the Tier I cities.

Macroeconomic risks
Interest rates, inflation and exchange rate risks are amongst the important macroeconomic
indicators and have shown decreased volatility. The provision of facilities, is in many
regions, still inadequate (education, transport infrastructure). These risk factors are not
likely to disappear in the near future, impeding the development of the real estate sector.

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 Company profile

DLF Limited (Delhi Land & Finance) is the largest commercial real estate developer in
India. It was founded by Chaudhary Raghvendra Singh in 1946 and is based in New Delhi,
India . DLF developed residential colonies in Delhi such as Shivaji Park (their first
development), Rajouri Garden, Krishna Nagar, South Extension, Greater Kailash, Kailash
Colony, and Hauz Khas. DLF builds residential, office, and retail properties.[4][5]
With the passage of Delhi Development Act in 1957, the local government assumed control
of real estate development in Delhi and banned private real estate developers. As a result,
DLF began acquiring land at relatively low cost outside the area controlled by the Delhi
Development Authority, in the district of Gurgaon, in the adjacent state of Haryana. In the
mid-1970s, the company started developing their DLF City project at Gurgaon. Its plans
include hotels, infrastructure and special economic zones-related development projects.

The company is headed by Kushal Pal Singh. Kushal Pal Singh, according to the Forbes
listing of richest billionaires in 2009, was the 98th richest man in the world and the world's
richest property developer. The company's US$2 billion IPO in July, 2007 was India's biggest
IPO in history.[6] In its first quarter results for the period ending 30 June 2007, the company
reported a turnover of ₹31.2098 billion (US$460 million) and profits after taxes of ₹15.1548
billion (US$230 million).[7]
As of March 31, 2012, the Company had a 1,380 square feet of leased retail space across the
country.[8] In 2013–14, it leased out 3 million sq ft of office space in India.[9]
In August 2011 a penalty of ₹6.3 billion (US$94 million) was imposed on DLF by
the Competition Commission of India (CCI)[10]after finding DLF guilty of breaching laws
regarding the unfair pricing of goods and services. The complaint was lodged against DLF by
buyers in its residential projects Belaire & Park Place, located in Gurgaon.[11] DLF has paid
part of the penalty, and the matter is currently in the Supreme Court of India.[12] In February
2015, the CCI ordered its investigative arm to probe two more projects of DLF in Gurgaon,
namely, DLF Regal Gardens[13] and DLF Skycourt.

Sponsorship

In 2008, DLF became the title sponsor of the Indian Premier League, a newly
formed Twenty20 cricket league. DLF paid close to ₹2 billion (US$30 million) for the 5-year
sponsorship deal.[23] The deal ended in the 2012 version of the season; wherein it was taken
over by PepsiCo Inc. It is now called the Vivo IPL.

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Overview

DLF has nearly 70 years of track record of sustained growth, customer satisfaction, and
innovation. The company has 264 msf of development potential with 22.5 msf of projects
under construction.

DLF's primary business is development of residential, commercial and retail properties. The
company has a unique business model with earnings arising from development and rentals.
Its exposure across businesses, segments and geographies, mitigates any down-cycles in the
market. From developing 22 major colonies in Delhi, DLF is now present across 15 states-24
cities in India.

Development Business
The development business of DLF includes Homes and Commercial Complexes

The Homes business caters to 3 segments of the residential market - Super Luxury, Luxury
and Premium. The product offering involves a wide range of products including
condominiums, duplexes, row houses and apartments of varying sizes.

DLF is credited with pioneering the concept of developing commercial complexes in the
vicinity of residential areas. DLF has successfully launched commercial complexes and is in
the process of marking its presence across various locations in India.

The development business at present has 223 msf of development potential.

Annuity Business
The annuity business consists of the rental businesses of offices and retail

DLF is a name synonymous with global standards, new generation workspaces and lifestyles.
It has the distinction of developing commercial projects and IT parks that are at par with the
best in the world. DLF has become a preferred name with many IT & ITES majors and
leading Indian and International corporate giants, including GE, IBM, Microsoft, Canon,
Citibank, Hewitt, WNS, Bank of America, Cognizant, Infosys, CSC and Symantec, among
others.

DLF pioneered the retail revolution in the country and brought about a paradigm shift in the
industry by redefining shopping, recreation and leisure experiences. DLF's retail portfolio
includes India’s first luxury mall DLF Emporio, Premium malls - DLF Promenade (Vasant
Kunj, Delhi), DLF Place (Saket, Delhi), DLF City Centre (Chandigarh) and DLF Cyber Hub
(Gurgaon). The latest addition to this marquee portfolio is Mall of India - which is India’s
largest destination mall. DLF continues to actively create new shopping and entertainment
spaces all over the country.

15
The company currently has land resource of 46 msf for office and retail development.

DLF has a strong management team running independent businesses, though complementing
each other in cases of opportunities of mixed land use. DLF's mission is to build a world-
class real estate development company with the highest standards of professionalism, ethics
and customer service and to thereby contribute to and benefit from the growth of the Indian
economy.

DLF’s SBU

RETAIL OFFICE COMMERCIAL HOTELS HOMES RESIDENTIAL

SPACE GROUPS

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  Major Competitors of DLF can be listed as follows:

 Oberoi Realty
 Priestge Group
 Godrej Properties
 Sobha Developers
 Omaxe Ltd
 Parsvanath
 K Raheja Group
 Ambuja Realty

Omaxe

 Headed by: Rohtas Goel, CMD

 About: Over the past 22 years, Omaxe has established itself through diverse range of
residential and commercial projects. The company at present has 53 projects under
execution and planning. Omaxe Ltd was the first Construction Company of northern
India to receive an ISO 9001:2000 Certification.
 Project Spectrum: Integrated townships, Group housing, SEZs, Shopping malls &
commercial complexes and hotels.
 Latest: Has entered into infrastructure sector through Omaxe Infrastructure &
Construction Ltd (OICL), a wholly owned subsidiary. OICL has bagged the first
contract to construct Highway and three high level bridges in Punjab. The contract is
awarded by Greater Mohali Area Development Authority and its value is pegged at
Rs704 million.

Unitech

 Headed by: Ramesh Chandra, Executive Chairman

 About: Established in 1972, Unitech is today India’s leading real estate developer in
India. It is the first developer to have been certified ISO 9001:2000 in North India.
 Project Spectrum: Unitech offers diversified projects across residential,
commercial/IT parks, retail, hotels, amusement parks and SEZs segments. Unitech
was the first real estate company to be part of the National Stock Exchange’s NIFTY
50 Index. The company has over 600,000 shareholders.
 Unitech and Norway based Telenor Group came together to build Uninor - A
telecommunication services company providing GSM services across India.
 Latest: Has ventured into the infrastructure business by launching Unitech Infra.

Ansal API

 Headed by: Sushil Ansal, Chairman

 About: Established in 1967 as a family business, Ansal API today is clearly amongst
the real estate leaders of India. Having established itself very strongly in the NCR
region, Ansal API is now focusing on ventures in cities like Bhatinda, Mohali,

17
 Amritsar, Ludhiana, Jalandhar, Jaipur, Jodhpur, Ajmer, Sonepat, Panipat, Karnal,
Kurukshetra, Faridabad, Gurgaon, Greater Noida, and Ghaziabad, Meerut, Agra,
Lucknow, to name a few.
 Ansal API has till date, developed and delivered more than 190 million sq ft. The
company currently has a land reserve of about 9,335 acres.
 Project Spectrum: Integrated Townships, Condominiums, Group Housing, Malls,
Shopping Complex, Hotels, SEZs, IT Parks and Infrastructure and Utility Services
 Latest: Raised Rs231.4 crore through private placement of shares with institutional
investors for reducing its debt and execute ongoing projects.

Parsvnath Developers Ltd

 Headed by: Pradeep Jain, Chairman

 About: Incorporated in July 1990 by Mr Jain in New Delhi, Parsvnath today has a
substantial pan India presence in over 45 cities across 16 states. The company has
emerged as one of the most progressive and multi-faceted real estate and construction
entities in India.
 Project spectrum: Housing (premium, mid-market as well as affordable), office
complexes, shopping malls & hypermarkets, hotels, multiplexes, IT Parks and SEZs.
 Quick fact: First real estate company to have integrated with ISO 9001, 14001 and
OHSAS 18001.
 Latest update: Has partnered with Red Fort Capital to execute a Concession
Agreement with DMRC for development of a prime Grade A office project in New
Delhi’s Connaught Place.

Godrej Properties Ltd

 Headed by: Milind Korde, MD

 About: Established in 1990, Godrej Properties Ltd (GPL) brings the Godrej Group
philosophy of innovation and excellence to the real estate industry. GPL aspires to be
among India’s top three real estate companies while continuing to be the most trusted
name in the industry. GPL has completed several landmark projects and is currently
developing significant projects in 11 cities across India.
 Godrej Properties Ltd is listed on the Bombay Stock Exchange (BSE) and The
National Stock Exchange (NSE).
 Latest: Sold over 200 apartments within 2 days of launch of its project Godrej
Frontier in Gurgaon. This is the company’s first residential project in northern India.

K Raheja Corp

 Headed by: Chandru L Raheja, Chairman

 About: Incorporated in 1956, this Mumbai based real estate giant has been engaged in
real estate development for more than four decades. K Raheja Corp has built
residences, commercial buildings and hotels throughout India. The Group also
diversified in the hospitality sector in 1981and in the retail sector in 1991. The
company has several landmark projects to its credits across cities.

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  Quick fact: K Raheja Corp has given a firm commitment to have all of its future
projects undertaken anywhere in India to be Leed Certified Green Building Projects.

Kalpataru Group

 Headed by: Mofatraj P Munot, Promoter

 About: Established in 1969, Kalpataru is one of the leading real estate development
groups in India. The Group has been active primarily in the Mumbai Metropolitan
Region (MMR) & Pune. It is also undertaking projects in other key cities such as
Hyderabad, Surat, Nagpur, Jaipur and Udaipur.
 The Kalpataru Group has interests in real estate development, property and project
management, engineering, procurement and construction (EPC) contracting for power
transmission and infrastructure projects including road projects, warehousing and
logistics.
 Project Spectrum: The focus has been on the development of premium residential,
commercial, retail, integrated townships, lifestyle gated communities and
redevelopment projects.

Ambuja Realty

 Headed by: Harshavardhan Neotia, CMD

 About: Ambuja Realty has been providing housing in West Bengal, in a pioneering
joint venture with West Bengal Housing Board for the past 15 years under the name
Bengal Ambuja. The first real estate company in Eastern India to get ISO: 9002
Certification, in 1999, Bengal Ambuja has also earned them the highest developer
rating in India - DRI from ICRA, in 2003.
 Project Spectrum: The Group has a diversified presence across segments like
residential, retail, commercial and hospitality. The company is also planning an
aggressive pan-India growth strategy to deliver an unprecedented number of high-
quality projects. Currently, it is building more malls, hospitals, IT Parks, luxury
resorts, business hotels and are even aspiring to build a University.
 Latest: To invest around Rs500 crore in developing three shopping malls under the
‘City Centre’ brand in Raipur, Haldia and Patna.

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Vision, Mission & Values
DLF Vision
To contribute significantly to building the new India and become the world’s most valuable
real estate company.

DLF Mission
To build world-class real-estate concepts across six business lines with the highest standards
of professionalism, ethics, quality and customer service

DLF Values

 Sustained efforts to enhance customer value and quality

 Ethical and professional service
 Compliance and respect for all community, environmental and legal requirements.

20
 DLF's Presence
The following map illustrates the locations of our developments, projects and lands across
India, as of November 30, 2006:

21
Thus DLF wanted to apply cost differentiation leadership strategy where through
economies of scale they reduce the cost and achieve differentiation in each of its
strategic business units.

KEY ELEMENTS OF ITS EXISTING BUSINESS STRATEGY

Increase land reserves in strategic locations

Expand core business verticals nationally

Diversify into SEZ development

Diversify into hotel development

Undertake infrastructure development

Enhance execution capabilities

According to a newly devised strategy, the company would, instead of leasing out
commercial projects, indulge in outright sale to potential buyers including DAL. This model
rests on the ground that DAL would be able to garner low cost capital by tapping the
alternative investment market overseas and pay a higher capitalization rate for DLF's
properties resulting in faster growth in revenues and better margins too.

22
Brand reputation
 DLF has a 60-year history of service excellence. Since it was founded in 1946, it has been
responsible for the development of 21 urban colonies aggregating 5,816 acres, as well as an
entire integrated 3,000-acre township - DLF City.

DLF reputation for providing prompt payment to landowners upon the acquisition of its land,
developing and completing projects in a timely manner and conducting its business with
transparency has created a relationship of trust with its customers and suppliers. The
company retains internationally and nationally renowned architectural, construction and
consulting firms for all its projects.

Extensive land reserves are the most important resource for a real estate developer. As of
April 30, 2006, DLF land reserves under development aggregated 1,372 acres representing
approximately 102 million square feet of developed area or area available for development
and it has made partial payments to acquire a further 2,893 acres in various regions across
India. It is estimated that it will be able to develop over 118 million square feet of saleable or
rentable area.

The Company benefits from economies of scale and is able to purchase large plots of land
from multiple sellers, thus enabling it to aggregate land at lower prices. The company has the
ability to anticipate market trends and, in some cases, to influence the direction of such trends
provides it with opportunities to acquire strategic locations of their choice.

DLF is one of the first developers to foresee the need for townships on the outskirts of fast
growing cities and is credited with the growth of Gurgaon. The company is one of the early
developers to focus on developing theme-based projects such as The Magnolias in DLF City.

The Company has an experienced, highly qualified and dedicated management team, most of
whom have over 20 years experience in their respective fields. DLF encourages
responsibility, autonomy and innovation among its employees with an attractive
compensation package

23
  DLF’S SOME STRATEGIC DECISIONS

DLF Laing O’Rourke (India):

DLF Laing O’Rourke (India) Ltd is a joint venture between DLF, Laing O’Rourke Plc and
LOR Holdings Ltd. According to the agreement, the JV company would carry out
development activities in identified DLF projects for a built up space of 50m sq ft over five
years with minimum of 6m sq ft each calendar year. Laing O’Rourke will issue a corporate
guarantee in favor of DLF to secure the
JV company’s performance under the projects.

Joint venture with Hilton:

DLF has entered into a joint venture with Hilton International for development and
ownership of a chain of hotels and serviced apartments in India. DLF will hold 74% and
Hilton will hold 26% of the equity share capital of the JV company, which would develop
and own 50-75 hotels and serviced
apartments with an equity investment of US$550m over the next five to seven years.The
hotels and serviced apartments would be managed and operated by Hilton’s subsidiaries.
DLF has agreed not to develop and manage any hotels or serviced apartments that target the
same market segment as of the JV company.

Joint venture with WSP Group:

The JV company has been established to provide engineering and design consultancy and
project management services for DLF’s real estate plans. Both DLF and WSP Group have
equal shareholding in the JV company and have identical rights and privileges. The JV
company will provide consulting services to DLF for an initial 18 months after which the JV
company can target new clients in
India as agreed by the parties. WSP is permitted to provide independent services to its
current as well as new clients.

Acquisition of stake in Feedback Ventures:

Necia Builders and Developers Pvt Ltd, a subsidiary of DLF, has acquired a 19% stake in
Feedback Ventures at Rs72.5/ share. Feedback Ventures provides consulting, engineering,
project management and development services for infrastructure projects in India.

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MoU with Nakheel:

DLF has signed an MoU with Nakheel LLC, a leading property developer in UAE, to
develop real estate projects in India through a 50:50 JV company.

The initial two projects of the JV company would be 20,000 acres SEZ each in NCR
and South Maharashtra and/or Goa.

Joint venture with Prudential Insurance:

DLF has entered into a joint venture with Prudential Insurance to undertake life insurance
business in India. DLF would hold 74% and Prudential would hold 26% of the equity share
capital. DLF’s 30%
equity share capital and Prudential's entire shareholding would be locked in for seven years.
Remaining shareholding of DLF would be locked in for 10 years. After the lock-in period, if
any shareholder intends to transfer the shares, first offer should be made to the non-selling
shareholder. No transfer of share is permitted to the competitor.

Joint venture with MG Group:

DLF has entered into a 50:50 joint venture with MG group for real estate development. The
board shall consist of 4-12 members. Each party is entitled to appoint one half of the board. A
non-executive chairman would be nominated by DLF.

Joint venture with HSIIDC:

DLF has entered into a joint venture with HSIIDC for developing two SEZ projects. A SPV
would be created in the form of a limited company to implement the project. Shareholding
pattern is 90% in favor of DLF and 10% in favor of HSIIDC. The equity holding of DLF in
the SPV cannot fall below 51% and
HSIIDC cannot increase it above 26%. In the event of initial public offering, DLF would
contribute its share for the lock-in period of three years and shares held by HSIIDC would be
locked in for one year. HSIIDC has the right to sell its shares and DLF has the first right to
purchase it at market price. On DLF’s refusal, HSIIDC would have right to offer the shares to
the public.

25
 Top Companies on Basis of Market Cap

Omaxe Infra 2253.33

Sobha… 2691.85
Godrej… 3166.82 Rs. Cr
Prestige Group 4821.25
Oberoi Realty 6054.26
DLF 30199.1

Top Companies on Basis of Turnover

Puravankara 815.26

SRS Real Infra 849.56 Rs. Cr

HDIL 980.53

Omaxe 1345.64

Sobha… 1803.02

DLF 2150.04

26
Business Model
 DLF's primary business is development of residential, commercial and retail
properties. The company has a unique business model with earnings arising from
development and rentals. Its exposure across businesses, segments and geographies.
DLF has also forayed into infrastructure, SEZ and hotel businesses.

 The DLF real estate management has got a business model which enables seamless
integration of real estate business model owing to its business operation spanning
across land, design, construction, facilities and marketing.

 These bouquet of services are managed by a team of professionals with expertise

spanning across these functions

 DLF’s Business model mainly consist of two models:

 Development Business

 Annuity Business

 Development Business:
The development business of DLF includes Homes and Commercial Complexes. The
Homes business caters to 3 segments of the residential market - Super Luxury, Luxury
and Mid-Income. The product offering involves a wide range of products including
condominiums, duplexes, row houses and apartments of varying sizes. DLF has 216
msf of developed area under homes and residential plots.

 Annuity Business:
The annuity business consists of the rental businesses of offices and retail. With over
six decades of excellence, DLF is a name synonymous with global standards, new
generation workspaces and lifestyles. It has the distinction of developing commercial
projects and IT parks that are at par with the best in the world. DLF has become a
preferred name with many IT & ITES majors and leading Indian and International
corporate giants, including GE, IBM, Microsoft, Canon, Citibank, Vertex, Hewitt,
Fidelity Investments, WNS, Bank of America, Cognizant, Infosys, CSC, Symantec
and Sapient, among others.

27
 The ‘New’ Business Model Approach
 In 2006, the company adopted a new business model to cover all the aspects of the
realty sector in detail

 The old business model was completely changed

 The new business model is divided into four important components:

Design & Retail

Strategic
Development Management & Property
Marketing &
Management Operational management
Promotions
Leasing

Design & Development Management

 DLF Realty project team collaborates with world class architectural firms to create un
paralleled home, retail spaces which include shopping malls and integrated
developments.

 One of the distinctive in house services consists of tenancy design and coordination
functions.

 The designs of the apartments undergo serious scrutiny and checks within the
company in various divisions like quality, strength et al.

 The development phase is carried on once the design is approved from the approving
department

 DLF not only develops projects but creates unique propositions to anchor its
developments such as:

 DLF Emporio

 DT Cinemas

28
 Strategic Marketing & Promotions
 The marketing and promotions experts continually develop exciting plans regarding
the marketing of the apartments and commercial spaces.

 Several fun activities are designed to increase the shopper traffic and facilitate tenant
sales at the malls.

 The marketing team also conducts extensive activities to promote the apartments by
targeting the target segment according to the income, and other parameters.

 Promotions in the form of putting up stalls in the property expo, tie ups with agencies
are some of the commonly followed techniques in this area..

 All this is backed by well etched out advertising and PR initiatives for the efficacy of
the marketing plans.

29
  DLF’S STRENGTH AND WEAKNESS

STRENGTH

 Uniquely positioned in emerging, profitable segments:

 DLF has a sizable presence across several key cities (Delhi NCR, Mumbai,
Bangalore, Chennai, Kolkata, Chandigarh, Goa etc) and clear market leadership
position in commercial, retail, and lifestyle/premium
 apartments. These segments are highly profitable and have significant entry barriers.
The estimated market share at ~16% in commercial offices and ~8% in retail space
absorption in India over the next 2 years.

 Better placed to face the macro challenges:

 Commercial, retail, luxury and premium housing account for 67% of DLF's estimated
Gross
 Asset Value (GAV). Middle income housing segment accounts for just 24% of DLF’s
GAV (56% of the development area). This segment is more susceptible to emerging
macro concerns and challenges, and thus even 50% lower absorption v/s estimates
would impact GAV by ~11%

 DLF huge land bank

 DLF’s current land bank stands at 13,055 acres (addition of 2,800 acres since filing of
RHP) and
total developable area at 612m sq ft (addition of 43m sq ft). Recent land bank addition
of ~2,800 acres has been done at Rs19.3b (average cost of Rs230/sq ft, assuming FSI
of 1x). For DLF, land cost stands at Rs154b, i.e. an average of Rs252/sq ft, which
provides competitive advantages.

 Large companies such as DLF, which have holding power, are best positioned to take
large bets by acquiring large tracts of contiguous land, which could create value
through ‘land bank ageing’ and ‘integrated development’. It is believed that this
strategy will generate better returns, which would lead to continuous upgrade in
NAVs and allow for higher asset turnover.

 Successful implementation of monetization strategies will lead to lower capital costs

and
create conditions for building integrated property business models, comprising
property
development, re-development, acquisitions, divestitures, leasing and management

30
 WEAKNESSES

DLF due to its predominant positioning in the commercial office, retail and premium
apartment segments is relatively less vulnerable to the emerging macro challenges. We believe
that a significant part of the concerns pertaining to the sector are getting compounded in middle
income housing segment, which is more sensitive to prices and higher interest rates.

Macroeconomic risks:

Any weaker-than-expected GDP growth for the domestic economy could negatively affect
sentiment of buyers, leading to elusive demand, which could render sales and earnings estimates
for DLF unrealizable. Also, any further tightening measures and policy changes by the
government (with regard to mortgage applications and approvals, project financing, and property
pre-sales) to curb speculation
and overinvestment could adversely affect the bottom lines and cash flows of property developers
and sentiment of home buyers

Real risk of decline in property prices, and concentration in Gurgaon:

Conservatively, we have assumed ‘NO’ price increase in the NCR region for apartments during
FY08-17 and for commercial and retail during FY08-FY12. From FY13, we have assumed a price
CAGR of 5% in commercial and retail space in NCR. Other than NCR we have assumed stagnant
prices for all projects and all verticals (residential, commercial and retail) for FY08 and FY09.
Given the sharp acceleration in real estate prices over the past three years, there exists a real
probability of a price correction in certain pockets.
Also, NCR region still accounts for 42% of the development area for the company, thus exposing
it to significant price movements in the region.

31
 Chapter-2
literature review

32
The construction industry in India in more complex and subjected to greater risk as compared
to any other business and thus, it is important for the selection as well as implementation of
effective strategies of risk management in order for the project to be successful and thus
forms the core introductory principles of risk management. The completion of construction
projects within the projected time span has always been the most challenging task for the
construction companies and it is found that many construction projects have been
unsuccessful in the delivering the projects at time, cost and quality which the clients and their
consultants had perceived before the starting of the project and thus, it is important for the
management to efficiently design a plan of action to achieve the goals and requirements. As
per a report published by Economy Watch (2010) – Construction Industry Trends all over the
world show a rise in its rate of growth. This industry is composed of many components
including construction of heavy and civil engineering (highways, bridges, railway tracks,
airports, etc.), real estate (both residential as well as commercial) development, and
specialized construction products (such as architectural products, electrical connections,
decorative items, etc.). All these segments cannot be expected to show similar trends and in
fact are showing differential growth pattern all over the world. India is seeing a boom in the
construction sector mainly due to the government initiative in expansion of the
developmental facilities. Economic upsurge has also generated enhanced generation of
demand in the real estate sector (both residential as well as commercial). Construction
Industry in India is rising at a phenomenal rate of 7 to 8% p.a. As stated by Nargis Namazi
(2011) in an article published in Business Review – across the world, the construction
industry is witnessing a tremendous boom. And India is no exception! Government polices
and expenditure in infrastructure, training and regeneration projects have helped the sector
grow at high levels and the same pace is likely to be seen in the coming year too. This
industry comprises of 2 many components including construction of heavy and civil
engineering (highways, bridges, railway tracks, airports, etc.), real estate (both residential as
well as commercial) development, and specialized construction products (such as
architectural products, electrical connections, decorative items, etc.) The construction
industry is currently growing at 10 per cent per annum and has a size of 70 billion dollars but
with the huge investment in the construction industry, tremendous growth opportunities are
expected. Araghadeep Laskar and CVR Murthy (2011) state that the construction industry is
the second largest industry of the country after agriculture. It makes a significant contribution
to the national economy and provides employment to large number of people. The use of
various new technologies and deployment of project management strategies has made it
possible to undertake projects of mega scale. In its path of advancement, the industry has to
overcome a number of challenges. However, the industry is still faced with some major
challenges, including housing, disaster resistant construction, water management and mass
transportation. Recent experiences of several new mega-projects are clear indicators that the
industry is poised for a bright future. As per the market research report published by the
Consolidated Construction Consortium Limited (2011), our construction industry suffers
from capacity constraints, lack of trained manpower and managerial skills with performance
much below international level. The industry is starved of finance. Small and medium
contractors do not have the wherewithal to upgrade their capability, both hard and soft, to
undertake high value time bound projects. Quality, safety, environment and social aspects are

33
also not being addressed appropriately. The report concluded that in the years ahead, the
construction industry in India has to overcome various challenges with respect to housing,
environment, transportation, power or natural hazards. Technocrats associated with the Indian
construction industry need to employ innovative technologies and skilled project handling
strategies to overcome these challenges. The outstanding performance under demanding
situations in the 3 past will stand in good stead and give confidence to the Indian construction
industry to bring about an overall development in the infrastructure of the nation. The gains
of large investments in the mega-projects eventually will feedback to the construction
industry itself in the form of better economy and improved work conditions. According to
Niranjan Hiranandani, Managing Director, Hiranandani Constructions (Project Manager,
2011), “the National Housing and Habitat Policy of the Government of India was passed in
October 1998 by Parliament. It talks about issues like liberalisation in the housing sector.
What we need to do now is to first scrap the Urban Land Ceiling Act. The Central
government has already scrapped the Act, but many states, including Maharashtra, have not
followed suit. If this is done, more land will be available for development. The second major
thing is stamp duty. Fortunately for us, Maharashtra has reduced the stamp duty on
commercial properties from 10 per cent to 5 per cent, and for residential properties from 8 per
cent to 5 per cent. The third important factor is the sanction of building plans. But since this
process is riddled with corruption, it is difficult to clear plans or procure non-agricultural
land. If these steps are taken, some problems faced by the real estate industry will be solved.”
A Report by CIDCI (2006-2007) remarked that the 10th Five year plan brought by the
Planning Commission, Government of India, which is a policy paper for the economy for the
next five years (2002 – 2007) has for the first time incorporated a chapter on Construction.
This shows the importance given by the Government of India to the Construction Industry.
The plan encourages 8% growth in GDP for which total investment is Rs. 4,081,700 Cr. The
public sector investment is 1,1212,802 crore and private sector investment is 2,476,100 crore.
Based on past experience, construction accounts for 40-50% of the investment which means a
figure of 2,000,000 crore in the next five years or about 4,00,000 crore every year. 4 Singh
Vandana (2009) concluded her research paper with the remark that the Real Estate is a very
wide concept and it is highly affected by the macro-economic factors like GDP, FDI, per
capital income, interest rates and employment in the nation. The most important factor in the
case of Real Estate is location which affects the value and returns from the Real Estate. India
needs a stronger capital market base for property financing. The debate on the potential
introduction of REITs and real estate funds points in the right direction. The introduction of
REIT s in 2007, will give international investors in particular a familiar investment vehicle.
Private investors could also enter into indirect investment in real estate. Although interest in
new projects is most likely to come primarily from institutional investors, the rising middle
class is likely to seek new instruments aside from direct property investments in the medium
term. So, in the end we can say that the investment in Real Estate in India is a very good
investment opportunity. But one should be very careful while taking decision in this direction
due to rising inflation and interest rates. Legal issues should also be kept in mind while
choosing a property. According to K. K. Kapila, Chairman and Managing Director of ICT
Pvt. Ltd (2011), our construction industry suffers from capacity constraints, lack of trained
manpower and managerial skills with performance much below international level. Though

34
there are islands of excellence in a sea of mediocrity, our companies must become global
players by modernising, intensive training of their manpower, enhancing their turnover and
change of mindset. The industry is starved of finance. Small and medium contractors do not
have the wherewithal to upgrade their capability, both hard and soft, to undertake high value
time bound projects. FIDIC conditions are not being rigorously followed and the contract
agreements continue to be heavily loaded in favour of the owner/client. Quality, safety,
environment and social aspects are also not being addressed appropriately. According to
Drake MacDonald (2011), like many emerging countries, India has a problem with faulty
construction. Sadly, the primary reason there are so many poorly constructed buildings in
India is due to greed. However, what makes matters 5 worse is that greed is not isolated to
one particular segment such as builders or workers, but to the construction industry in India
as well a whole. Builders looking for cheap and quick ways to build often skimp on materials,
while the low wages received by contract workers encourages them to do little as possible
and take no pride of their work. Even the government is guilty of greed, as officials often
pocket bribes in exchange for awarding contracts or looking the other way. Clearly the
problem in India is not that there is a lack of regulation, but merely lack of enforcement for
existing regulations. A study conducted by IHS Global (2009) concludes that the Indian
construction industry is highly fragmented. This is partially due to the fact that, for most
projects, there are no long-term relationships between the contractors and clients. For
example, government agencies such as the National Highway Authority of India (NHAI) do
not provide any benefits to the long-term contractors that have worked with them in the past.
Because the sector lacks economies of scale, smaller players may have better cost structures
due to lower overhead costs. Iyer K. R. (2011) remarked in his report that India today is
facing a unique challenge of dealing with high inflation, while continuing high growth.
Boosting of supply in all industries, including incentivizing of infrastructure development,
streamlining of regulatory process to reduce time and costs for business and tax incentives for
low cost housing are all important areas which will help reduce inflation and also enable
growth rates to be maintained. Infrastructure remains a vital sector for India’s growth story,
which was reiterated by country’s Finance Minister (FM) Pranab Mukherjee in his Budget
2011-12. Construction projects in various areas like road, low-cost housing, ports and
airports, bridges and special economic zones (SEZ) will propel the growth and order book of
construction companies. Heamanta Doloi and et.al (2012) have identified factors that cause
delay in construction projects in India. From the factor analysis, most critical factors of 6
construction delay were identified as (1) lack of commitment; (2) inefficient site
management; (3) poor site coordination; (4) improper planning; (5) lack of clarity in project
scope; (6) lack of communication; and (7) substandard contract. Regression model indicates
slow decision from owner, poor labour productivity, architects' reluctance for change and
rework due to mistakes in construction are the reasons that affect the overall delay of the
project significantly. These findings are expected to be significant contributions to Indian
construction industry in controlling the time overruns in construction contracts. According to
Singh Pradeep (2011), in a giant industry like construction, there are many strains due to
peculiarly irrational risk-sharing arrangement coupled with its competitive character. Today
there are increasing disputes and differences arising out of contractual relations between
contractors and owners whether owners are individual, firms or public. Construction

35
contracts have very sensitive arrangement of weaving many different agencies to perform
various obligations to execute the job. Because of complexity of such interwoven
responsibilities, superimposed by statutes, monitored by environmentalists, exposed to
vagaries of nature and uncertainties of markets, it could be a miracle if any construction
project can come out without getting greatly distorted on time-money or concept scale. He
has identified the following four categories of factors that lead to dispute and delay in
construction projects: (1) Changes include Additions, Alterations, Variations, Deletions. (2)
Delays and suspension. (3) Different Site conditions. (4) Unjust enrichment by owners. A
study by Word Bank (2008) entitled ‘India - Indian Road Construction Industry: Capacity
Issues, Constraints and Recommendations’ made several recommendations to improve the
Indian construction industry and eliminate the hassles associated with inter-departmental
coordination. Some of these recommendations are: (1) Mainstreaming the pre-construction
process and clearances; 7 (2) Setting up a Road Appellate Tribunal for faster dispute
resolution based on the US and Singapore models, rather than the current contract by contract
approach; (3) Initiating a system on rating, grading and registration of construction
companies and individuals, as currently followed in US and several European countries, to
improve professionalization in the industry and facilitate improved access to finance; and (4)
Framing a construction law to improve the legal and regulatory environment in the country.
According to G. K. Kulkarni (2012) construction workers are exposed to a wide variety of
health hazards at work. The exposure differs from job to job. The workrelated diseases form
5% to 20% of work force. He identified some common problems of construction workers to
be physical injuries, hazards from harmful chemicals, dusts, mists, gases and biological
hazards such as malaria, dengue, etc. The Report of the Second National Commission on
Labour (2002), warns that the present trend towards induction of modern technology in
construction industry is likely to transform the traditional labour market and indicates that
there would be increased mechanization and manual and women workers would, therefore, be
increasingly eliminated from large construction projects. When machines come in, the first to
lose jobs are women workers as they are considered the least skilled. Prof. Deelip Kumar M.
(2006) has made the following suggestions for improving the conditions of labourers in
construction industry: (1) Investigate the abuse and exploitation of labourers by agents and
employers and prosecute such agents and employers. (2) Create awareness of construction
labourer's rights and set up mechanisms of redressal. (3) Ensuring decent working conditions
and proper contract systems and providing basic health care for construction labourer's. 8 (4)
Adequate intervention from the government authorities required ensuring the health, safety
and welfare of the construction labourers. (5) Effective implementation of the labour laws
that making provision of better health, safety and welfare of the construction labourers. (6)
NGO's working for child welfare should consider the difficulties of the construction labourers
and plan strategies to ensure free education of these children. (7) NGO's working should
extend open education to the labourers and to alleviate atrocities against them. (8) Organize
public medical camps where constructions sites are located (9) Constant inspection from the
government part is required to reduce the plight of the construction labourers. (10)
Constructive support from the trade unions to the construction labourers to be ensured where
the government and management couldn't support. (11) Encourage the construction labourers
saving habit by initiating thrift and banking awareness. (12) Ensure adequate insurance

36
facilities for the construction labourers. As per an article published in Time of India (2011),
supply of sand is the another major constraint in delaying construction projects across
Mumbai city. Sand shortage has impacted construction work in a big way. The past two
months were particularly bad and building projects slowed down because of the ban on sand
mining. Builder Nayan Shah said remarked that sand prices increased five times in the past
one year. The quality is sub-standard and most suppliers now indulge in illegal and
surreptitious mining. A year ago, a truck of sand cost Rs 9,000. It has since increased to Rs
30,000 to Rs 34,000. Shah said building projects are delayed and have turned expensive. My
projects are now making 30% progress compared to six months ago. Builders use more steel
because of the poor quality of sand. Construction cost has shot up by 15% and quality of
structure has fallen by 40%, said Shah. He also remarked that the government has failed to
act.

37
Chapter-3
Research

38
 Research methodology
Research methodology is a collective term for the process of conducting research. There are
many different methodologies used in various types of research and the term usually
considered to include research design data gathering and data analysis. Research
methodologies can be qualitative and quantitative.
A Research Methodology explains the reason behind the research how it is conducted, how to
gauge advancements in the process carried out and what constitute accomplishment
concerned with the objectives decoded to be undertaken for the study.
Marking research is the systematic gathering recoding and analyzing of data about problem
retaining to the marketing of goods and services.
The essential purpose of marketing research is to provide information, which will facilitate
the identification of an opportunity of problem situation and to assist manager in arriving at
the best possible decisions when such situations are encountered.

Purpose of the study

To carry out the study of the employee satisfaction at company and assess the employee
satisfaction level in present competitive environment of Industry to help knowing and
reading of the minds of the current generation professionals regarding their Company
Culture, Compensation, Work atmosphere, Management support, Job satisfaction,
performance appraisal and Career growth opportunities.

Objective of study

 To understand the customer satifactaction of DLF with other competitor

 To understand the awareness of DLF among customer
 To know the marketing strategy of DLF
 To know the factors which affect decision making process of customer while
purchasing the products of real-estate.

 To find out the Market opportunity for the awareness infrastructure pvt. Ltd

39
Data Collection
1) Primary data- data was collected directly from the customers through a questionnaire.
2) Secondary data- data collected through journals, periodicals, Websites and
newspapers

Sample Size

Sample size refers to the numbers of respondents researcher have selected for the survey.

I have selected 100 sample units from, cites, and individual customers.

Research design
Descriptive Research Design”. This kind of design is used for more precise investigation or
of developing the working hypotheses from an operational point of view. It has inbuilt
flexibility, which is needed because the research problem, broadly defined initially, is
transformed into one with more precise meaning in exploratory studies, which in fact may
necessitate changes in research procedure for gathering relevant data.

The characteristic features of research are as follows: –

 Flexible Design
 Non-Probability Sampling Design
 No pre-planned design for analysis
 Unstructured instruments for collection of data
 No fixed decisions about the operational procedures

40
Chapter- 4
Data analysis

41
Q.1 –Are you interested in Real estate?

 Yes

 no

Yes No

76 24

no, 24

yes,76

Interpretation – from this question, it seems that most of the people are interested for buying

property through real estate still there are few people who are not interested in real estate.

42
2. – if not, what are the reason?

 Risk

 Bad experience

 Other reason

Risk Bad experience Other reason

60% 26% 14%

Chart Title

Other
reason
14%

Bad
experience
26% Risk
60%

Interpretation – this question showing the reason for not interested in real estate, most of the

people considered the lot of risk, few of them had bad experience and rest of the has other

reason.

43
Q3. –Do you prefer real estate agency for buying the property?

 Yes

 No

Yes no

76 24

no, 24

yes,76

Interpretation – with100 respondents, 76 people prefer to buying the property through real estate

agency and rest of that not interested.

44
Q4. – which type of property you want to purchase?

 Flat/house

 Plot

 villa

Flat/house plot villa

40% 56% 4%

Chart Title
villa
4%

Flat/house
40%

plot
56%

Interpretation: most of the customer interested in plot and then interested in flat/house and few

of them interested in villa.

45
Q5. –which factor do you considered most in property?

 location

 price

 facilities

location price facilities

60% 39% 11%

Chart Title
facilities
10%

price location
35% 55%

Interpretation – with 100 people, 60% people looking for the location, but 39% people go with the

price and then rest of the people go with facilities . This shows that there are a lot of scopes of real

estate sector.

46
Q6. – why do you want to purchase?

 return

 for wealth

 other reason

Return For wealth Other reason

70% 25% 5%

other reason
5

for wealth
25

return
70

Interpretation – because of much appreciation in real estate property, about 70% people want to

invest in real estate, few of them are invested for making wealth for family few have other

reasons.

47
Q7. – Do you influence by the company’s scheme on purchasing property?

 yes

 no

Yes No

70% 30%

Chart Title

No
30%

Yes
70%

Interpretation – people who are interested in real estate and they looking for scheme while

purchasing property so, most of the people influence from the company’s scheme and some

people not influence from scheme .

48
Q8. – in which area do you want to purchase house or flat?

 Near market

 Near transport facility

 Industrial area

 Near official area/working place

 other

Near market 18%

Near transport facility 26%
Industrial area 5%
Near official area/working place 40%
Other 11%

Near market

Near transport facility

Industrial area

Near official area/working

place
other

Interpretation – people state the reason to not purchase the houses because few of them have not

enough money, few of them think that the location of property is not up to the mark.

49
Q9. – What is your budget in purchasing flat/ house?

 2 – 15 lakh

 15 – 30 lakh

 30 – 45 lakh

 Above 45 lakh

2 – 15 lac 12%

15 – 30 lac 50%

30 – 45 lac 32%

Above 45 lac 6%

Above 45
lac Chart Title
6% 2 – 15 lac
12%

30 – 45 lac
32%
15 – 30 lac
50%

Interpretation – this question show that much people who are interested in purchasing flats ,

mostly belongs to upper middle level. They have enough money to invest/ purchase flats/ houses.

50
Q.10. – which size of flat/house does you want?

 1 BHK

 2 BHK

 3 BHK

1 BHK 2 BHK 3 BHK

18% 60% 22%

Chart Title

3 BHK 1 BHK
22% 18%

2 BHK
60%

Interpretation: most of the people interested in purchase 2 BHK flat, and then 3 BHK. few of them

preferred to 1 BHK.

51
Q11. –How do you come know about Aarvans?

 Relatives

 Hoardings

 others

Relatives Hoardings Others

40% 24% 36%

Chart Title

others
36% Relatives
40%

Hoardings
24%

Interpretation: most of the people know the company through relatives, then hoardings and few

of them others like telecalling advertisement

52
Q12. – Which mode of payment you want to adopt?

 Bank loaning

 Cash payment

Bank loaning Cash payment

90% 10%

bank loan
90

Interpretation – most of the people prefer bank loan to purchase real estate property because it is

convenient for them who have not much cash for single time payment.

53
Q13. – If you want to purchase plot/flat, for which purpose you want to purchase?

 Residential

 Commercial

 Investment

Residential 20%

Commercial 33%

investment 47%

residentiaal
20

investment
47
commercial
33

Interpretation – people who are interested in purchase plot/flat, mostly purchase for investment ,

few of the people interested in commercial purpose and then residential purpose.

54
Q14. – How much is your budget in for purchasing plots?

 1 – 5 lakh

 5 – 15 lakh

 15 – 30 lakh

 More than 30 lakh

1 – 5 lac 31%

5 – 15 lac 40%

15 – 30 lac 19%

More than 30 lac 10%

above
15 lac
1-5lac
10
31

15-30 lac
19

5-15 lac
40

Interpretation – this question also show that there are more middle level people which are

interested in plotting.

55
Q15. –Which kind of facilities do you like in plot?

lights 40%
water 35%
road 15%
Other 10%

Chart Title

Other
10%

road lights
15% 40%

water
35%

Interpretation – in case of plot, most of the people like the facilities of lights in plot, and then

water. Few of them like the road’s facilities in plot.

56
Q16. – In which area you want to purchase your plot?

 Near market

 Near transport facility

 Industrial area

 Near official area

 other

Near market 32%

Near transport facility 24%

Industrial area 38%

Near official area 2%

Other 4%

near official area other

2 4

near market
32
industrial
area
38

near transport
facility
24

Interpretation – in case of plots, the situation has been changed, people prefer plots in industrial

area.

57
Q17. – When you would like to invest in real estate?

 within 1 year

 1 – 5 year

 More than 5 year

Within 1 year 55%

1 – 5 year 35%

More than 5 year 10%

more than 5 year

10

1-5 year within 1

35 year
55

Interpretation – this show that there is a lot of scopes of real estate market in near future.

58
 Chapter-5
Findings, Conclusions And Suggestions

59
 FINDINGS

 People who are interested about real estate, in that segment more than 76 % people
are interested in real estate but 24% people are not interested in real estate.
 There are some reason states that 60% people considered risk in real estate,26%
people considered bad experience and rest of that customer having other reason for
not interested in real estate.
 76% customer prefer real estate agency for buying property and 24% customer not
interested in real estate agency. This shows that there is a lot of scope of real estate
sector.
 Persons who are interested in real estate, 40% customer interested to purchase
flat/house, plot about 56% and 4% customer interested in villa to purchase through
Aarvanss Real Estate Company.
 There are some factors considered the customer in property, 60% customer sees the
location, 39% price, and 11% customer considered the facilities.
 The customer has some reason to invest in property, 70% customer invest for the
return, 25% for wealth and 5% having other reason. because property is appreciation
day by day
 Customer influence by the Company’s scheme, there are 70% customer influence by
the company’s scheme and 30% customer not influenced by the scheme .
 The area factor considered by the customer, 18% require house near market, 26% near
transport facility,40% near office area and 11% other factor considered in purchasing
flat/house.
 It matter about the budget line of the customer in purchasing of flat/house, 50%
customer having the budget between 15-30 lakh, 32% having the budget between 30-
45 lakh and 12 % having 2-15 lakh.
 60% of the customer require 2 BHK flat, 22% customer required 3 BHK and rest of
that required 1BHK flat.
 40% customer know about the Aarvanss company through relatives, 24% from
hoardings and rest of that aware through other sources
 90% of the customer prefer bank loan to purchase real estate property and 10% cash
payment, because it is convenient for them who have not much cash for single time
payment.

60
 The customer who interested to invest in real estate time to time, 55% of the customer
prefer to invest within 1 year, 35% of the customer prefer 1-5 year and rest of that
customer would prefer to invest more than 5 year.
 At last it can be said that there are a lot of scope of real estate market in near future.

61
 Conclusions
 Finally, it can be concluded that in real estate sector, customer preferences affected by
many factor but time is a very important which affect the decision making process of
consumer.
 It is most fast growing & profitable sector in area of investment.
 The land is limited so it will always be appreciated.
 On the basis of study of consumer behavior, it can be said that in near future, there
will be a lot of demand for real estate.
 But there is a risk factor that obstruct people to invest in real estate sector, so if the
organization, which is selling the real estate should always be ready to clear all the
doubts & queries which are in the mind of customer.

62
 SUGGESTIONS

Suggestion to real estate industry/companies –

 The price of land should be decided not only on the basis of demand & supply in a
particular sector but also on the basis of land use & utility.
 For determining potential customer, the organization should provide data i.e.
marketing research analysis and contacts of people who are the potential buyer of the
company.

Suggestion to real estate customers –

 For those people who are interested in real estate, they should have analyze the utility
of land available for them and surroundings of that land.
 Since land cannot be produced, the prices of land always increase so for those people
who are not interested, should invest in real estate sector because it is the most
profitable segment of investment.
 The customer should have trust on the builder because builder invests a lot of money
and it is always registered in government.

63
 Limitations

1. The first problem which I faced is unable to getting the co-operation of the customers.
many of the respondents I approached did not agree to the need and utility of the
project and hence not agreed to provide me the information.

2. The behavior of the customer is unpredictable which may result in the lacking of
accuracy in the data.
3. My survey consisted of 90% male and 10% of female, which led to gender biasnes.

4. As the sample size of the survey was so small and comprise of only 100 customers,
the results may have some prone to errors.

64
Bibliography & Annexure

65
 Bibliography

Books:-

1. Agrawal D.R. 2005 Business Ltd. India. Statistics Published By Vrinda Publication (P).

2. Case studies in Marketing in Indian Context by R Srinivasan

3. Philip Kotler, 2007, Marketing Management Published by Pearson Education New Delhi.

4. Kothari C.R.2006, Research Methodology Method & Techniques Published by New Age

International (P) Ltd. New Delhi.

Websites:

1. www.DLF.in

2. www.realestatesearch.com

3. 99acre.com - Google Search

4. www.Aarvanssgroup.com ::

Real Estate India-India Property-Indian Properties- Property in India-Makaan.com

66
 ANNEXURE

Questionnaire

Q.1 – Are you interested in real estate?

 Yes
 no

Q2. – if not, what are the reason?

 risk
 bad experience
 other reason

Q3. – do you prefer real estate agency for buying property ?

 yes
 no

Q4. – Which type of real asset you want to purchase?

 Flat/ house

 Plots

 villa

Q5. – Which factor do you considered most in property?

 location

 price

 facilities

67
Q6. – why do you want to purchase?

 return

 wealth

 other reason

Q7. – Do you influence the company scheme on purchasing property?( Sample- 100)

 yes

 no

Q8. – In which area you want to purchase your flat/house?

 Near market

 Near transport facility

 Industrial area

 Near official area

 other

Q9. – What is your budget in purchasing flat/ house?

 2 – 15 lakh

 15 – 30 lakh

 30 – 45 lakh

 Above 45 lakh

68
Q10. Which size of flat do you want?

 1 BHK

 2 BHK

 3 BHK

Q11. How do you come know about Aarvanss?

 Relatives

 Hoardings

 other

Q12. – Which mode of payment you want to adopt ?

 Bank loaning

 Cash payment

For those who are interested in plots –

Q13. – If you want to purchase plot , for which purpose you want to purchase?

 Residential

 Commercial

 Investment

69
Q14. – How much is your budget in for purchasing plots ?

 1 – 5 lakh

 5 – 15 lakh

 15 – 30 lakh

 More than 30 lakh

Q15. – which kind of facilities you like most in plot?

 Lights

 road

 Water

 others

Q16. – In which area you want to purchase your plot?

 Near market

 Near transport facility

 Industrial area

 Near official area

 other

70
Q17. – When you would like to invest in real estate ?

 within 1 year

 1 – 5 year

 More than 5 year

71