A Project Report on
“FANTASIA BUSINESS PARK “
HAWARE INFRASTUCTURE PVT.LTD
& “Growth of Real Estate Sector with in 5years”
ALLIANCE PROPERTY SERVICES PVT. LTD .
BY
YOGESH ARUN SONI
UNDER THE GUIDANCE OF
“RAJKUMAR GHOSH”
SUBMITTED TO
“UNIVERSITY OF PUNE ”
In partial fulfilment of the requirement for the award of the degree of master of business administration (MBA) trough
ASM’S INSTITUTE OF BUSINESS MANAGEMENT& RESEARCH
(I.B.M.R) CHINCHWAD PUNE 411019
1
CERTIFICATE
This is to certify that the Project Report at
“FANTASIA BUSINESS PARK " ,VASHI NAVI MUMBAI
Submitted in partial fulfillment of the requirements for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
To
PUNE UNIVERSITY
is a record of bonafide training-cum-project carried out
By
YOGESH ARUN SONI
Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree /diploma /fellowship or similar titles or prizes.
FACULTY GUIDE (IBMR)
Name: Mr. RAJKUMAR GHOSH
Signature:
2
COMPANY CERTIFICATE
STUDENT’S DECLARATION
I hereby declare that the Project Report conducted at
FANTASIA BUSINESS PARK , NAVI MUMBAI
Under the guidance of
MR.RAJESH RUPAREL
Submitted in Partial fulfillment of the requirements for the
Degree of
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
By
PUNE UNIVERSITY
is my original work and the same has not been submitted for the award of any other Degree / Diploma / Fellowship or other similar titles or prizes.
Place: VASHI ,NAVI MUMBAI RAJESH RUPAREL
Date: MARKETING MANAGER
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ACKNOWLEDGEMENTS
I take the privilege to express my sincere thanks to
Mr. suresh haware ; “HAWARE BUILDERS” who always found time and
gave me their undivided attention while discussing the problems and issues
that arose during the course of the project, besides explaining the work and
tasks that have to be done in the organization. I would also like to express my
sincere gratitude to my faculty guide Mr .Rajkumar ghosh,
for aptly supporting me throughout the project, and for always
listening patiently to all my doubts and queries and also suggesting the
solutions. His feedback has been of immense help. This project would not have
been possible without his words of encouragement and directions. I would also
like to thank the director of my institute Asm’s institute of business management &
research. professors and lecturers for their support
continuous motivation. I would be failing in my duty, if I don’t thank executives
and staffs of the organization, as without their support the project would
not have materialized.
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TABLE OF CONTENTS
Ch. No.
Particulars
.
1. Introduction
1.1 General Introduction of real estate
1.2 Objectives of the Study
1.3 Industry Profile
a) Origin and Development of the Industry
b) Growth and Present Status of the Industry
c) Future of the Industry
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
2.4 Organization Structure
2.5 Product and Service Profile of the Organization
2.6 Market Profile of the Organization
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3. Discussions on Training
3.1 Job Profile ( (Role and Responsibility)
3.2 Key Learning’s
3.3 Students Contribution to Organization
4. Study of Selected Research Problem
4.1 Statement of research Problem
4.2Statement of research Objectives
4.3Research Design & Methodology
5. Analysis
5.1 Analysis of Data
5.2 Summary of Findings
6. Summary and Conclusions
6.1 Summary of Learning Experience
6.2 Conclusions and Recommendations
7. Bibliography
6
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Rashtriya Ratan and Builder of the year award from Economic Studies and International study circle.
Indian Achievers of the year Award 2008 from All India Achievers Foundation State Presidents- The Maharashtra Builders forum
Participated in Baba Amte’s Bharat jodo Abhiyan as Navi Mumbai Incharge.
Maharashtra’s Rural and Urban Slum Settlements establishes Haware Real Estate Acad-emy
5 Lbour schools and 7 mobile dispensaries for welfare of constructions workers and their families.
Donated 5 ambulances to NGOs. Active in save Trees campaign and beautiful city drive Initiated starting 502 bus routes for vashi –sanpada residents. Round the clock work and efforts and always in the forefront in the social –education cul-
tural field for residents of Navi Mumbai
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CHAPTER:1
INTRODUCTION
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INTRODUCTION OF REAL ESTATE SECTER:
Real estate is one of the fastest growing sectors in India. Market analysis pegs returns
from realty in India at an average of 14% annually with a tremendous upsurge in
commercial real estate on account of the Indian BPO boom. Lease rentals have been
picking up steadily and there is a gaping demand for quality infrastructure. A significant
demand is also likely to be generated as the outsourcing boom moves into the
manufacturing sector. Further, the housing sector has been growing at an average of 34%
annually, while the hospitality industry witnessed a growth of 10-15% last year.
Agents are often better informed than the clients who hire them and may exploit this
informational advantage. Real-estate agents, who know much more about the housing
market than the typical homeowner, are one example. Because real estate agents receive
only a small share of the incremental profit when a house sells for a higher value, there is
an incentive for them to convince their clients to sell their houses too cheaply and too
quickly. We test these predictions by comparing home sales in which real estate agents
are hired by others to sell a home to instances in which a real estate agent sells his or her
own home. In the former case, the agent has distorted incentives; in the latter case, the
agent wants to pursue the first-best. Consistent with the theory, we find homes owned by
real estate agents sell for about 3.7 percent more than other houses and stay on the market
about 9.5 days longer, even after controlling for a wide range of housing characteristics.
Situations in which the agent’s informational advantage is larger lead to even greater
distortions. Other possible explanations, such as a lower effort on the part of agent when
serving clients, lower discount rates on the part of agents, or unobserved differences in
housing quality, appear less likely to account for the observed differences.
India has experienced near-double-digit growth in the last several years and stories
of the Indian economic juggernaut fill newspapers and bookstores. The commercial real
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estate market is no exception. The IT boom has created a huge demand for quality office
space that was nonexistent a few short years ago. Several prominent Indian developers
have emerged, and more and more international investors and developers are plunging
into the country.
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Marco-economic Overview
The Indian economy currently stands among the world's fourth largest growing
economy in terms of purchasing power parity and holds the distinction of being a key
contributor to Asia's balance of payment surplus. India's GDP is estimated to be the third
largest in the world by 2020. India is also considered the second most attractive country
in the world for Foreign Direct Investment (FDI). Forex Reserves (excluding gold and
SDRs) stood at US$157.25 billion at the end of July 2006. India now holds the fifth
largest stock of reserves among the emerging market economies and the sixth largest in
the world.
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The performance of the country has been consistent and steady over the past three
years with an average annual growth rate of 8%. The growth trend is being led by
positive movements across sectors in agriculture, manufacturing and services.
In recent years, the broad based growth in services sector has been a principle
driver of the GDP growth. Business services (including Information Technology (IT) and
IT Enabled Services), communication services, financial services, hotels and restaurants
and trade (distribution) services are among the fastest growing service sectors. India’s
share in the world market for IT software and services (including BPO) increased from
around 1.7% in 2003-04 to 2.3% in 2004-05 and an estimated 2.8% in 2005-06.
The proportion of manufacturing in the GDP has remained stable at around 25%,
however, the growth rate of manufacturing has increased over years, from 2.7% in 2001
to 9.0% in 2006 against the growth rate of 2.3 % and 9.8% in agriculture and services
respectively. Manufacturing Industries like textiles, automobiles, cement, steel,
petrochemicals, Infrastructure (civil aviation, roads, and ports), electronics, beverages
and tobacco products have been the prime drivers in India’s Industrial growth.
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REAL ESTATE SCENARIO IN INDIA
The size of the Indian real estate market is estimated at USD 12 billion and it is
currently growing at rate of about 30% annually. Real estate lending by banks has
increased by 3.78 times in the last two years, forming 18% of the total bank credit. Strong
and improved economic growth, proactive policy initiatives like relaxation of FDI in
construction and availability of finance (institutional and retail) has driven the demand
for real estate across all sectors - Commercial, Residential, Retail and Hospitality. Also,
there is an increased focus towards development of Special Economic Zones (SEZ) in
India.
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The last few years have seen Indian market mature through regulatory reforms
(rationalization of stamp duties, reform of urban land ceilings), improving products in
terms of quality and technology, changing tenant profile (MNCs, and respect for tenancy
laws), and improving management and maintenance models (enhanced product life-
cycles and sustained project / real estate yields). Although the initial real estate boom was
concentrated in places like Bangalore and the National Capital Region of Navi Mumbai
(including Gurgaon), more recently the geographical spread has widened. There has been
a significant shift in real estate market from metros to its suburbs and to tier II and tier III
cities. Lease rentals and occupancies have been picking up steadily and there is an
increasing demand for quality infrastructure across various segments of the real estate
sector.
Commercial Real Estate
The demand for new office space in India has grown from an estimated 3.9 million
sq. ft in 1998 to over 16 million sq. ft in 2004-05. 70% of the demand for office space in
India is driven by over 7,000 Indian IT and ITES firms and 15% by financial service
providers and the pharmaceutical sector. Cumulative demand for office space in India
over the next two years (2006-08) is estimated to be in excess of 45 million sq. ft. The
Indian IT-ITES Industry, estimated at USD 36.3 billion in 2006 has grown at a CAGR of
36% over the last decade and by 2008, is expected to account for over 7% of India’s GDP
and 30% of foreign exchange inflows. In 2005 alone, IT/ITES sector absorbed a total of
approx 30 million sq. ft and is estimated to generate a demand of 150 million sq. ft. of
space across major cities by 2010. South Indian cities like Bangalore, Chennai and
Hyderabad along with NCR (National Capital Region) continue to attract the major share
of IT/ITES and business investment. However, secondary cities, like Pune, Chandigarh,
Indore, Kochi and Kolkata are now emerging as the new preferred destinations for these
companies due to their cost and infrastructure advantages.
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Residential Real Estate
The residential property market in India constitutes almost 75% of the real estate
market in terms of value. Low per capita housing stock, rising disposable income coupled
with easy availability of finance from the housing finance companies and banks are
driving demand in this sector. Also, Average age of housing loan borrowers has
decreased to 30- 35 years from 40- 45 years a few years ago, indicating a younger buying
threshold. The housing sector is currently growing at 30-35% per annum. A proportion of
demand is also being driven from investors who view housing as an attractive investment
option as compared to mutual funds and stocks. The demand for housing is
geographically widespread with townships being built in both the metros and the tier II
and III cities. In India, there is a housing shortage of 19.4 million units out of which 6.7
million are in urban areas alone. This translates into very high opportunities for investors
in the residential sector.
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Retail Real Estate
The Retail industry in India continues to be dominated by individual small format
stores with floor space of less than 500 sq.ft. Total number of retail outlets is estimated to
be around 12 -15 million, indicating a retail density of 12-14 outlets per 1,000 people,
which is one of the highest in the world. The retail sector in India is currently estimated at
USD 230 billion. The current size of the organized retail activity is USD 7 billion, which
is a mere 3% of the total retail market. The retail sector is witnessing a growth of 5-7%
per annum; however the organized retail is poised to grow at a rate of 25% - 30% per
annum and is expected to be worth over USD 30 billion by the year 2010, thereby
increasing the share of organized retail activity from the current level of 3% to 15% in the
coming decade.
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Hospitality Real Estate
Hospitality industry in India is growing at an annual rate of over 8%. The number
of foreign tourists’ arrivals (a major driver of hospitality industry) in the country
increased to approx. 4 million in 2005. Over 55% of the total demand for hotels in the
country is generated by foreign leisure tourists and business travellers (domestic and
foreign). A large proportion of lodging demand in commercial cities such as Bangalore,
Mumbai, Navi Mumbai etc. comes from business travellers.
This category also accounts for the major proportion of demand for five star or five
star deluxe hotels. However, against the total current supply of 96,000 rooms, five star
category accounts for just a quarter of the supply. With the expected growth in demand
for rooms at 18%, another 65,000 – 80,000 hotel rooms will be needed till 2010. This
demand – supply gap is expected to result in high level of activity in construction of
hotels. The established brands in this sector such as Asian Hotels, Indian Hotels, ITC, Le
Meridian etc are in expansion mode with many new players such as Accor Group,
Marriot, Choice, IHG Group keen to establish their footprint.
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Special Economic Zones
The upcoming realty trend in India after multiplexes and mega housing projects are
the Special Economic Zones (SEZ). Currently, 28 SEZs are operational in the country,
including those converted from Export Processing Zones (EPZ) to SEZ. Approx. 189
proposals have already been granted approval since the SEZ Act, 2005 came into force.
These include SEZs in various segments such as multi-product, Information Technology,
Bio-technology, Gems and Jewellery, Textiles and technology intensive industries. Both
developers and corporate have shown tremendous interest in developing SEZs in the
country. Reliance Industries, for instance, is planning a 25,000 acre SEZ in Gurgaon and
is also the main partner in twin SEZs coming up at Navi Mumbai and Maha Mumbai,
with a combined size of 35,000 aaps.
The Adani group is also setting up an SEZ at Mundra, covering 30,000-35,000
aaps, and it proposes to invest Rs 7,300 crore on infrastructure. Other corporate who are
in process of setting up SEZs include TCG Refineries of the Chatterjee Group (SEZ
refinery at Haldia in West Bengal), Suzlon Infrastructure (hi-tech engineering products
and services near Coimbatore in Tamil Nadu, Udupi in Karnataka and Vadodara in
Gujarat), Hindalco (aluminium SEZ at Sambalpur in Orissa), Genpact (IT SEZ at
Bhubaneshwar in Orissa, Jaipur in Rajasthan and Bhopal in Madhya Pradesh), Vedanta
Alumina (aluminium SEZ at Orissa). Seeking the permission for SEZs are also a number
of Real Estate consultants, including DLF, Ansals, Omaxe, Parsvnath, Shipra Estate and
Sunny Vista Realtors.
FDI in Real Estate
With the opening of the sector for 100% FDI under automatic route, the real estate sector
is estimated to capture about 18-20% of the total FDI coming to India in 2005-06. The
FDI in Real Estate is expected to have a favourable multiplier effect on the economy. As
an indicator, for every rupee spent on construction, an estimated 75-80% gets added to
the GDP. The spill-over effect of this initiative can also be witnessed in important sectors
like the cement and construction industries, where the key players are expanding capacity
21
to meet the soaring demand. With the relaxation of the FDI limit, the country saw an
influx of global Real Estate consultants like Dubai-based Emaar Properties (the largest
listed Real Estate consultant in the world) – which enetered
India in a joint venture with Navi Mumbai based MGF Developments.
Growth and leverage to higher India growth
The real estate sector is developing rapidly in India. The demand side has robust and
sustainable macro drivers across all segments.
Residential :
Accounting for more than 70% of the sector in terms of space, residential segment
growth is driven by urbanization and the migration of households up the income curve.
According to the National Council of Applied Economic Research estimates, the number
of urban households earning more than INR 500,000 (about US$12,000) should more
than double to 7.6m in 2006-10.
Commercial :
Rapid growth in IT/ITES services (manpower in the sector has doubled in the past three
yearsto 1.6m) is the main driver of Grade A commercial office space demand. Jones Lang
LaSalle,a property consultancy, estimates that the absorption of office space in the top
seven cities inIndia was 31.1m square feet in 2006.
Retail :
According to CRIS INFAC, the penetration of organized retail into the overall market
will increase from 3.5% in 2005 to 8% in 2010, thereby driving the demand for mall
space.
Hospitality :
According to CRISIL, the number of 5-star rooms is expected to grow by 60% in the next
four years with foreign tourist arrivals growing at 10% CAGR.
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Structure Of Real Estate
The real estate industry has historically been fragmented and opaque, but this is
changing:
Penetration of mortgage finance :
Mortgage disbursals grew by 38% in FY2001-06 and have become an integral part
of the buying process. This has helped reduce the unaccounted “cash component” of
transactions.
Entry of foreign capital :
Regulations governing foreign capital in the sector have been relaxed, motivating
developers to become transparent and improve corporate governance.
Change in legislation :
In many states, strict laws like the Urban Land Ceiling Act (which defines ceiling
of land holdings in urban areas) have been repealed or modified.
Consumer preferences :
Consumers are now willing to pay premium prices for better amenities and a good
brand. In response, most of the bigger developers are scaling up geographically, which
necessitates rigorous systems and processes.
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MUMBAI REAL ESTATE
Mumbai is no way behind when it comes to a talk on property. The Mumbai real
estate is in its growth orbit and attracts investors from major multinationals in the recent
times. Such is the potential of the city's infrastructure that it is known to be spearheading
most cities as far as property market is concerned. With Mumbai serving as the
entertainment city, even the organized retail sector here is fast flourishing.
Purchasing real estate in Mumbai requires a significant investment, and each piece
of land in the city has unique features, so the property market in Mumbai has evolved
into several different fields.
Having the potential to leverage high returns, a large number of real estate projects
are financed everyday in Mumbai. NRIs can shop for property in the city with the
expectation of attaining an investment good, or with the purpose of utilizing it as a
consumption good, or both.
Mumbai is also the fashion capital of India, so it is one of the foremost cities to be
hit by the retail buzz. With the opening up of the retail market, there has been a growing
demand for retail properties in Mumbai. This has created a viable market for mall space
and other retail stores and showrooms. These retail stores and malls are either owned by a
business group or leased for hefty prices as the demand is high.
The property prices as well as the increase in rental values in Mumbai owe much
of its credit to the large scale investments in the commercial sector. Mumbai has always
been the hot favorite for most of the corporate sector to have their headquarters in the
city. And with increasing investments by MNCs in the IT, ITES and the BPO sector,
there has been a growing demand for office space; which have consequently created an
imbalance in demand and supply for residential properties. The rental values in Mumbai
have also in high corresponding to that in other metros.
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Navi Mumbai- Emerging Commercial Hub
Even India’s leading conglomerates have taken up commercial space here. The
state administration has already shifted wholesale commodity markets to Navi Mumbai.
So, you have endorsements from different segments that Navi Mumbai’s commercial real
estate is much sought after,” he says. Suresh Haware, MD, Haware Builders concurs.
“Even at the ‘nano’ end of the commercial real estate spectrum, demand is high,”
he says. It is the small offices and shops’ segment that have witnessed the highest de-
mand at Haware Builders’ commercial projects in Navi Mumbai, he reveals.
Today, industrial units in Navi Mumbai are relocating to locations in Raigadh dis-
trict and commercial is the latest buzzword in Navi Mumbai’s real estate scenario, says
Vijay Gajra of the Gajra Group. “Commercial options in Navi Mumbai span a huge price
band. Growth of the residential segment in Navi Mumbai, prior to that of the commercial
segment, actually works out in favour of the end-user today, as manpower resources are
easily available,” he points out. “Commercial real estate in Navi Mumbai comes at com-
petitive prices vis-à-vis other options in the Mumbai metropolitan region (MMR), with
the added advantage of being located in a well-planned city,” adds Gajra.
IT/ ITeS SEZs and businesses that have anything to do with rail/road transport and
logistics or shipping, are proving to be the next big segment in Navi Mumbai’s commer-
cial spectrum, shares Mayur Shah, honorary secretary, MCHI. Ramneek Bakshi, principal
of global property consultants, LJ Hooker, points out that MNCs view India within the
parameters of the ‘Brazil, Russia, India, China’ (BRIC) equation. “When they look at In-
dia as a business entity, Mumbai takes prime position. When they start looking out for
space, Navi Mumbai, which forms the third level of real estate pricing, is attractive for
MNCs looking to set up shop in the Mumbai region,” he explains. At the Norwegian con-
sulate in Mumbai, George Mathew, honorary consul general, concurs, “If you look at real
estate pricing trends in the MMR, Navi Mumbai fits the bill on many counts. However,
25
the clincher is the price efficiency and developed infrastructure that Navi Mumbai pro-
vides,” he concludes.
Appreciations
The hike in demand as well as supply and appreciation in capital values are
attracting good attention from overseas investors. The Mumbai real estate has become a
reflective of the high growth in Indian property market. There has been an increase in real
estate value across micro markets in Mumbai as well.
Mumbai is looked upon as one of the most organized and transparent property
market in India. With cash components and transactions shooting up in the last two years,
the city has gained much popularity among the investors, both domestic and international.
The investment market has been thriving with excellent returns going high over the past
few years. The real estate boom and an upsurge in development activities in major parts
of Mumbai have led to a rise in investment prospects in commercial and residential
sector.
Known locations like Bandra-Kurla Complex (BKC) and Lower Parle have seen
appreciations in commercial spaces falling under the category of Grade A. The
occupancy levels in other preferable locations like Andheri West and Nariman Point also
increased in the current year and are believed to have marked the rise by 90-95%.
Another mark appreciation is in regard to commercial properties in Mumbai, and is
prevailing in the city's micro markets barring a few exceptions.
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NRI Real Estate trends
Major property developers in Mumbai, underpinned by the vastness, scope, success
and scale of progress in the city are now transforming developing properties into strong
retail bases. Then of course, the government permitting foreign direct investment (FDI)
up to 51% in retail trade has also brought about major moves in retail industry.
The demand for property whether commercial or residential, is very high in
Mumbai. There has been steady demand for consecutive years and has resulted in an
increase in the yield rate. New real estate projects in Mumbai are always in queue to be
launched by private as well as by government. This encouraged overseas investors
especially Non resident Indians (NRIs) to make significant investments in Mumbai
properties.
With an excellent accessibility across the globe, the city of dreams, Mumbai has
emerged as an ultimate destination for most people. As per property surveys, one can sell
any property and get a price which is fairly good. Within the real estate industry, it is
believed that such periods come in cycles and bring an apt time to cash upon.
What makes real estate in Mumbai so exciting are an ongoing demand and the
proposed projects that are to be executed in approaching years. Builders always have
special offers and attractive schemes in store for end consumers. Capital Values of
quality apartments, in well-maintained old buildings and upcoming projects, in South and
South Central Mumbai, have gone through the roof.
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1.2) OBJECTIVES OF THE STUDY
The paper aims to examine the present scenario of real estate in India. In this broader
framework, an attempt has been made to achieve the following specific objectives:-
1. To study the fundamental factors affecting the real estate value.
2. To examine the present factors of real estate boom.
3. To present the future constraints of real estate investment in India.
4. To study customers perception while they purchase shops and offices.
5. To study how to close a good deal.
6. To make good relationship with client
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1.3 INDUSTRY PROFILE
A) ORIGIN & DEVELOPMENT OF THE INDUSTRY
Over the past decade, India has emerged as a leader in the global economy. It is a magnet
for foreign direct investment (FDI), and has displaced Mexico as the third most preferred
Country for foreign investment. FDI in India is expected to increase to US$15 billion this
year, triple the 2004 figure. Many foreign companies are starting or expanding operations
in India. One-fifth of all Fortune 500 companies including Eli Lilly, General Electric, and
Hewlett Packard have set up research and development facilities in India. The surge in
foreign investment, more joint ventures between Indian and foreign companies, and the
growth of India’s domestic industries have created more employment opportunities for
India’s young, highly educated, professional workforce and fueled the growth of the
country’s middle class. Advantage India: Real estate is one of the fastest growing sectors
in India. Market analysis pegs returns from realty in India at an average of 14% annually
with a tremendous upsurge in commercial real estate on account of the Indian BPO
boom. Lease rentals have been picking up steadily and there is a gaping demand for
quality infrastructure. A significant demand is also likely to be generated as the
outsourcing boom moves into the manufacturing sector. Further, the housing sector has
been growing at an average of 34% annually, while the hospitality industry witnessed a
growth of 10-15% last year. Apart from the huge demand, India also scores on the
construction front. A Mckinsey report reveals that the average profit from construction in
India is 18%, which is double the profitability for a construction project undertaken in the
US. The importance of the Real Estate sector, as an engine of the nation’s growth, can be
gauged from the fact that it is the second largest employer next only to agriculture and its
size is close to US $ 12 billion and grows at about 30% per annum. Five per cent of the
country’s GDP is contributed by the housing sector. In the next three or four or five years
29
this contribution to the GDP is expectedto rise to 6%. The Real Estate industry has
significant linkages with several other sectors of the economy and over 250 associated
industries. One Rupee invested in this sector results in 78 paise being added to the GDP
of the State. A unit increase in expenditure in this sector has a multiplier effect and the
capacity to generate income as high as five times. If the economy grows at the rate of
10% the housing sector has the capacity to grow at 14% and generate 3.2 million new
jobs over a decade. The relaxed FDI rules implemented by India last year has invited
more foreign investors and real estate sector in India is seemingly the most lucrative
round at present. Private equity players are considering big investments, banks are giving
loans to builders, and financial institutions are floating real estate funds. Indian property
market is immensely promising and most sought after for a wide variety of reasons India
has experienced near-double-digit growth in the last several years and stories of the
Indian economic juggernaut fill newspapers and bookstores. The commercial real estate
market is no exception. The IT boom has created a huge demand for quality office space
that was nonexistent a few short years ago. Several prominent Indian developers have
emerged, and more and more international investors and developers are plunging into the
country. As with any local or regional market, there are many idiosyncrasies that color
the business environment, and India is no exception. Below is an introduction into the
current conditions ithin the Indian real estate market and what the future may hold as
India quickly becomes a global superpower.
B) GROWTH & PRESENT STATUS OF THE INDUSTRY
Despite early signs of the market reaching a peak, most of India’s cities continue to be
overwhelmingly a landlord’s market. All cities are still seeing multiple leases and active
requirements from 100,000 to over 1 million square feet, and tenants are sometimes
forced to wait months for the completion of core shell construction to start the hiring
process for their new operations. Tenants are faced with the resulting conditions: no
tenant improvement allowance, free rent periods that are only given during fit-out
30
construction, and maintenance charges up to twenty percent above cost.
Things to take care of:
A relatively young democracy – celebrating its 60th year of independence this year –
India is still maturing economically and politically, and a thorough due diligence is
required when considering India from an occupier or investor perspective. Local
developers are still responsible for the majority of new supply in most markets and their
reliability on timelines and construction quality varies. State governments play a key role
in the viability of any particular market and a shift in power can cause major changes in
the growth patterns of a city. Furthermore, the economic vehicles created for IT
companies are a source of much debate. STPI, or Technology Parks of India, is a
longstanding government agency, which provides tax benefits until 2011, and the
extension of these benefits is unclear. The result of this is that the majority of new
requirements are looking at Special Economic Zones, or SEZs, which allow for up to 15
years of tax holidays for both occupiers and developers. However, frequent changes in
SEZ policy require companies to create a customized strategic plan with their tax
consultant before commitment and occupancy. Likewise, there is no clearly defined exit
strategy for SEZs and developers are currently required to adopt a long- term hold
strategy on these assets.
C) FUTURE OF THE INDUSTRY
Despite volatility in the US and elsewhere due to sub prime lending, Indian equity
markets have remained strong, and this means companies from the subcontinent are
quickly reaching market capitalizations and credit levels that allow for major acquisitions
abroad. According to Grant Thornton, in the first eight months of 2007, there have been
164 acquisitions by Indian companies worth nearly $31 billion, compared to 73 in-bound
deals worth $15 billion. Global brands such as Tetley Tea are already Indian-owned and
31
Tata Steel made headlines early this year with its $12 billion acquisition of Corus Steel to
become one of the world’s largest steelmakers. Indian realty major DLF made its Initial
Public Offering in June and reached a market capitalization of over $20 billion, rivalling
the sale price of Equity Office to Blackstone last year. Interest in institutional assets
abroad is only inevitable and don’t be surprised to see Indian real estate majors such as
DLF and Unitech or conglomerates such as Reliance and Tata’s owning premium real
estate assets in major US markets in the coming years.
32
CHAPTER:2
PROFILE OF AN OR-GANIZATION
33
ALLIANCE PROPERTY SERVICES PVT. LTD .
Regd Off: 20/3, Vandana Bldg,
R.A. Kidwai Road, Wadala,
Mumbai-400031.
Administrative Office:
Vashi Plaza, Ground Floor,
Sector 17, Vashi,
Navi Mumbai- 400705.
34
Background
They started as a journey by a single individual with a desire to excel has now
become an organization which is serving the needs of the real estate industry in the
country today.
Alliance today has the best talent on its board of directors who are
professionals in real estate, finance, accounting and taxation striving to render the best of
services to its clients. Alliance today has given shape to and has structured some of the
most complex and landmark transactions for reputed clients.
They add value to your properties through their experience and expertise, with
their wide network of clients and contacts all over India and global arena. They assist
everyone in identifying opportunities and the right partners to compliment their
capabilities.
Business Segments
BUSINESS SEGMENTS
Managementconsultancy
Financing
Real Estate
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Our services help clients to achieve value addition by turning assets into dynamic as-
sets and realize the best potential of each asset and try to optimize by putting each as-
set to its best possible use.
Projects Handled-
Little World Mall:
They had sole mandate to lease the mall which started in October 2007 in Kharghar.
Complete project was completed by them with good anchors and brands as listed below:
Aditya Birla more, Archies, Levis, Levis Signature, Max Lifestyle, Adlabs, The
Raymond Shop, Reid & Taylor, Welspun,Thomas Scott , Connexions, Koutons, Planet
M, The Mobile Store, Homes & Apparels, Lilliput, Carmicheal House, Kittens, Thomas
Scott, Gini & Jony, La Diamond, Nice Looks, Dosa Plaza, China Land, Chopking,
Indian Tadka, Moti Mahal, Café Energise, Café Bollywood, Kwality Swirls Juice Zone,
Namrata Cup Corn.Curries and Parathas.etc
City Center Mall:
They have leased Operational Mall on Palm Beach Road, Vashi. The list of brands
which we introduced to this mall are: Levis, Roop Sangam, Kittens, Gini& Jony, La
Diamond, And Design, Adora, M&B Shoes,Black berry, Weekender, Infancy,Timex,
GKB Opticals, Black Berry, ITC John Player, Unistyle, Addidas, Nike, Spykar, Lee
Franchising
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Cooper, Ruff Kids, L effect, Live In, Lovable, Dominoes, Nice Looks, Top Corn, Café
Coffee Day, Ameoba Game Zone, Stone age Restaurant.
Other Individual Projects Handled :
Brokerage deals:
¤ Crystal Mall- Bandra & Mumbai Times Café
¤ Reliance & Maithili Signet at Vashi.
¤ K star Mall –Chembur Aditya Birla More
¤ Fantasia Mall-Inox (Multiplex)
Bank Finance:
¤ Arrangement for Akshar Developers from Axis Bank
¤ Arrangement for Wellwisher Constructions from Axis Bank
¤ FDI investment for Little World Mall.
¤ Etc,.
Quality Objectives
Continuous improvement in the quality of services.
Prompt response to customer complaints
Strong property data bank.
Aggressive follow up & due diligence.
Panel of associates for legal, finance, market research, investments and other allied
subjects.
Handling properties in all metros and all other cities across the country.
37
An Overview
Alliance Property Services is professionally managed company having presence in
Mumbai, India in the following activities:
1. Real estate –Sale and lease.
2. Lease of retail outlets in malls and High street.
3. Joint ventures with developers.
4. Leasing and sale of entire properties with High Value clients. /Builders/Investors/
Private equity /Venture capital /Foreign Direct Investors.
5. Franchising in retail and other spheres.
6. Arranging attractive investment proposals/ideas for investors.
7. Holding real estate/franchising /retailing /financing expositions and exhibitions in
all towns and cities.
8. Finding investors for local developers and Builders.
9. Underwriting entire projects for marketing ,investments and execution.
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Corporate Real Estate Services
Transactions for all kinds of properties across the country including:
Residential
Office
Commercial
Retail & Shopping Malls
IT Park
BPO/ Call centre
Hotel & Resorts
Leisure & Entertainments
Hospitals
Multiplexes
Industrial
Institutional.
2.1 ORIGIN OF THE ORGANIZATION
ALLIANCE PROPERTY SERVICES – A professionally managed company providing
consultancy services in real estate to cater the growing needs of individuals as well as
large corporate houses.
The company was established in 1999 and commenced its commercial operations right
from the beginning with small properties. With the growing needs, the company expanded
its business and started dealing in residential as well as commercial sector with innovative
marketing policies. Presently the company is an authorized channel partner of all the
leading Real Estate consultants in India.
The company holds its administrative office in Vashi,Navi Mumbai. The company has a
39
huge database of commercial, residential properties with a pan India presence. We at
Corporate Real Estate, endeavour to exceed the expectations, to give delight and
comprehensive service & satisfaction to the client. We pride our self on understanding the
clients requirements in minute details and provide him high quality advice and
consultation services which meet the various constraints of time, budget, & quality for all
his property requirements, especially in Mumbai, navi mumbai region. We assist clients in
every stage of the estate process, representing them in the buying, selling, financing,
leasing, managing and valuing of assets, and providing strategic planning and research,
portfolio analysis, site selection and space location, among many other advisory services.
We with our long association with the various builders have the ability to negotiate and get
you a property at discounted rates to suit your budget.
Client satisfaction being our target: we have valued our principles over the time- and thus taken
pride in being a contemporary name in the industry. Composed by a co-existing insight from the
clients and our masterminds, our team has delivered at times of dire necessities for people of
different strata. Homes, Offices, Commercial facilities, Hotels & Resorts, Shopping Malls, IT
Parks- each and every undertaken task has depicted our dedication and sincerity towards our
innovative business module, bold commitments and utmost sincerity. We understand that Real
Estate does not just signify a property or a capital investment; for some it is the initiation of a
process of realizing the dreams. We, at corporate real estate firmly believe in our client's ethics,
principles, and values and thus have cherished immense trust from them.
Vision
To become one of the most progressive Real Estate Company, offering professional services of the highest integrity
40
Mission
APS is established to provide the highest quality Real Estate Services to its market area. It is our pledge to provide expertise, innovation through technology, and dedication to our clients while maintaining the highest quality standards and ethics
Commitment
APS is committed to the satisfaction of our clients, and to the profession of Real Estate itself.
OUR EXPERTISE
With our long experience and extensive industry knowledge, we have gained expertise in each
and every domain of real estate sector. We specialize in developing projects for residential,
commercial, IT, Entertainment, Hospitality, Retail and SEZ’s as per the interests and special
requirements of our clients. We specialize in delivering best results as a result of the synergy of
the synergy of our resources such as experience, knowledge, labor, finance, plant and
equipment.
At APS, we believe that humanity is indivisible. In this age of liberalization, one has to think
globally and act locally. We are committed to help the process of building a healthy and sane
human society. We aim to achieve excellence in all our offerings and areas of its activity and to
to scale the heights of perfection.
WHY US?
APS was formed with sole purpose of providing 'Professional and Honest' services to itsvalued
customers. We believe 'service is our business' and keeping this in mind we have set high
standards for the same. We have always served our clients with sincere endeavor to provide
'One stop property shop', which can cater to all their real estate requirements. At the
41
same time we also realize that several factors go into providing real estate solutions that protect
our customer's investment, most importantly clear title, Quality of Product & Cost-
effectiveness. Our extensive database ensures a wide spectrum of choice in properties for our
clients.
We are very different from other reality companies. We are a corporate, and we have a
proper and transparent process controlling and monitoring every little work we do. All your
property related services, documentation, registry, deed writing and other official & legal
processes are handled in the most professional manner.
2.2 GROWTH & DEVELOPMENT OF THE ORGANIZATION
APS, based in Vashi,Navi Mumbai, provides its services in all major parts of the country.
The company was established in response to the growing need for quality housing and
commercial space in the metropolitan cities of country. Ever since its inception, APS has
grown as highly reliable real estate company of the country, serving the needs of a wide and
discerning clientele.
APS has emerged as a large Real Estate consultant in India. We are also one of the large and
renowned Real Estate consultants in Navi Mumbai. We also provide expert and specialized
services like property consultation and management services, Land Identification, Realty
Surveys, facilitating conceptualization to completion of any kind of real estate projects. We also
handle rental property management services and specialize in leasing to Corporate, Expatriate
and Retail brands. Besides this we do sale, purchase and renting for our customers. We provide
end-to-end commercial and residential real estate services to our clients. Our company places
great emphasis on maintaining long term and transparent relationships with our clients.
42
We understand the Indian and Global Real Estate market and we can foresee the market
trends. We have opened the doors of international real estate for our customers in India and
vice versa. Overseas Indians are allowed to make investments in Indian property without any
limit on the quantity or the number of investments. We understand global cross-cultural
business issues and also offer international networking opportunities. For Surya it's a long
way to go. What we have done in other industry we want to achieve same position in real
estate line.
2.3 PRESENT STATUS OF THE ORGANIZATION
APS, based in Vashi,Navi Mumbai, provides its services in all major parts of the country.
The company was established in response to the growing need for quality housing and
commercial space in the metropolitan cities of country. Ever since its inception, APS has
grown as highly reliable real estate company of the country, serving the needs of a wide and
discerning clientele.
APS has emerged as a large Real Estate consultant in India. We are also one of the large
and renowned Real Estate consultants in Navi Mumbai. We also provide expert and specialized
services like property consultation and management services, Land Identification, Realty
Surveys, facilitating conceptualization to completion of any kind of real estate projects.
We also handle rental property management services and specialize in leasing to Corporate,
Expatriate and Retail brands. Besides this we do sale, purchase and renting for our
customers. We provide end-to-end commercial and residential real estate services to our
clients. Our company places great emphasis on maintaining long term and transparent
relationships with our clients.
43
We understand the Indian and Global Real Estate market and we can foresee the market
trends. We have opened the doors of international real estate for our customers in India and
vice versa. Overseas Indians are allowed to make investments in Indian property without any
limit on the quantity or the number of investments. We understand global cross-cultural
business issues and also offer international networking opportunities. For Surya it's a long
way to go. What we have done in other industry we want to achieve same position in real
estate line.
2.4 ORGANIZATIONAL STRUCTURE
APS has emerged as a large Real Estate consultant in India. We are also one of the large
and renowned Real Estate consultants in Navi Mumbai. We also provide expert and specialized
services like property consultation and management services, Land Identification, Realty
Surveys, facilitating conceptualization to completion of any kind of real estate projects. We
also handle rental property management services and specialize in leasing to Corporate,
Expatriate and Retail brands. Besides this we do sale, purchase and renting for our
customers. We provide end-to-end commercial and residential real estate services to our
clients. Our company places great emphasis on maintaining long term and transparent
relationships with our clients.
We understand the Indian and Global Real Estate market and we can foresee the market
trends. We have opened the doors of international real estate for our customers in India and
vice versa. Overseas Indians are allowed to make investments in Indian property without any
limit on the quantity or the number of investments. We understand global cross-cultural
business issues and also offer international networking opportunities.
44
2.5 a) PRODUCTS OF THE INDUSTRY
1. Residential apartments.
2. Commercial Projects.
2.5 b) SERVICE PROFILE OF THE ORGANIZATION
We give expert and specialized services like property consultation and management
services, Land Identification, Realty Surveys, facilitating conceptualization to completion of
any kind of real estate projects. We also handle rental property management services and
specialize in leasing to Corporate, Expatriate and Retail brands. Besides this we do sale,
purchase and renting for our customers in India and Abroad. We provide end-to-end
commercial and residential real estate services to our clients. Our company places great
emphasis on maintaining long term and transparenrelationships with our clients.
We specialize in developing projects for residential, commercial, IT, Entertainment,
Hospitality, Retail and SEZ’s as per the interests and special requirements of our
clients. We have expertise in delivering best results as a result of the synergy of the
synergy of our resources. We have pioneered in the art of creating space for you and
your family to grow in style and luxury.
Services like Purchase of Land, Construction, Architecture, Landscaping, Renting and
Selling are undertaken under a single roof. The best part is that you don’t have to take the hassle
of dealing with any of the authorities while you’re with us
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2.5 c) COMPETITORS OF THE ORGANIZATION
MUMBAI REAL ESTATE
Mumbai is no way behind when it comes to a talk on property. The Mumbai real
estate is in its growth orbit and attracts investors from major multinationals in the recent
times. Such is the potential of the city's infrastructure that it is known to be spearheading
most cities as far as property market is concerned. With Mumbai serving as the
entertainment city, even the organized retail sector here is fast flourishing.
Purchasing real estate in Mumbai requires a significant investment, and each piece
of land in the city has unique features, so the property market in Mumbai has evolved
into several different fields.
Having the potential to leverage high returns, a large number of real estate projects
are financed everyday in Mumbai. NRIs can shop for property in the city with the
expectation of attaining an investment good, or with the purpose of utilizing it as a
consumption good, or both.
Mumbai is also the fashion capital of India, so it is one of the foremost cities to be
hit by the retail buzz. With the opening up of the retail market, there has been a growing
demand for retail properties in Mumbai. This has created a viable market for mall space
and other retail stores and showrooms. These retail stores and malls are either owned by a
business group or leased for hefty prices as the demand is high.
The property prices as well as the increase in rental values in Mumbai owe much
of its credit to the large scale investments in the commercial sector. Mumbai has always
been the hot favorite for most of the corporate sector to have their headquarters in the
city. And with increasing investments by MNCs in the IT, ITES and the BPO sector,
there has been a growing demand for office space; which have consequently created an
imbalance in demand and supply for residential properties.
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Navi Mumbai- Emerging Commercial Hub
Even India’s leading conglomerates have taken up commercial space here. The
state administration has already shifted wholesale commodity markets to Navi Mumbai.
So, you have endorsements from different segments that Navi Mumbai’s commercial real
estate is much sought after,” he says. Suresh Haware, MD, Haware Builders concurs.
“Even at the ‘nano’ end of the commercial real estate spectrum, demand is high,”
he says. It is the small offices and shops’ segment that have witnessed the highest de-
mand at Haware Builders’ commercial projects in Navi Mumbai, he reveals.
Today, industrial units in Navi Mumbai are relocating to locations in Raigadh dis-
trict and commercial is the latest buzzword in Navi Mumbai’s real estate scenario, says
Vijay Gajra of the Gajra Group. “Commercial options in Navi Mumbai span a huge price
band. Growth of the residential segment in Navi Mumbai, prior to that of the commercial
segment, actually works out in favour of the end-user today, as manpower resources are
easily available,” he points out. “Commercial real estate in Navi Mumbai comes at com-
petitive prices vis-à-vis other options in the Mumbai metropolitan region (MMR), with
the added advantage of being located in a well-planned city,” adds Gajra.
IT/ ITeS SEZs and businesses that have anything to do with rail/road transport and
logistics or shipping, are proving to be the next big segment in Navi Mumbai’s
commercial spectrum, shares Mayur Shah, honorary secretary, MCHI. Ramneek Bakshi,
principal of global property consultants, LJ Hooker, points out that MNCs view India
within the parameters of the ‘Brazil, Russia, India, China’ (BRIC) equation. “When they
look at India as a business entity, Mumbai takes prime position. When they start looking
out for space, Navi Mumbai, which forms the third level of real estate pricing, is
attractive for MNCs looking to set up shop in the Mumbai region,” he explains. At the
Norwegian consulate in Mumbai, George Mathew, honorary consul general, concurs, “If
you look at real estate pricing trends in the MMR, Navi Mumbai fits the bill on many
counts. However, the clincher is the price efficiency and developed infrastructure that N
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2.6 MARKET PROFILE OF THE ORGANIZATION
The real estate segment in India is witnessing huge growth as most of the metropolitan cities
are escalating the property map with state-of-the-art projects. According to reports, an
estimated size of the Indian real estate sector is $ 12 billion of country's $ 600 billion
economy. The sector is witnessing a stable and further sustainable boom and the
market is expected to reach $ 45 billion in five years. According to experts, the
demand and supply for real estate properties is slated to grow much higher in coming
few years, which is leading to the stability of prices.
The boom in the real estate market comprises of basically three sectors, viz. - residential,
commercial and retail. This boom in real estate market can be apparently observed in Navi
Mumbai, Gurgaon, Greater Noida and other major cities of the country. As the demand is
escalating, more and more players are entering the industry with a wide range of project to
offer. The developers are able to satisfy the most demanding buyers for residential, retail
and commercial properties with world class facilities. The number of available choices is
wid and the offered properties are highly profitable and special in their own. The market
trends in Indian Real estate sector are very healthy and are indicating towards a positive
trend for the long-term investor. The economy is growing at rapid rate i.e. 8%-9%
annually, which is creating a conductive business environment for organizations across
different industrial sectors. Other factors, which are likely to contribute to long term
demand.
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CHAPTER :3
DISCUSSIONS ON
TRAINING.
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3.1 JOB PROFILE
As we deal real estate, which is one of the most important sectors of industry, we
understand our responsibilities towards the society and our stakeholders. We have
formulated our policies and take decisions, which are based not only on financial factors
such as profits or dividends, but also consider the interests of customers, employees,
shareholders, communities, and ecological considerations in all aspects of our operations.
We give prime emphasis to:
Ethical business practices
Transparency
Mutual benefit and
Respect in relationship with clients
3.2 KEY LEARNINGS
Experience of How to deal with Clients?
Experience of preparing the documents.
Easily identify the Market Scenario.
How to deal with Brokers?
Over all is that knowledge about the Real Estate Sector.
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MY PROFILE IN ALLIANCE PROPERTY SERVICES PVT. LTD.
Projects Handled:
CENTURION COMMERCIAL &
SHOPPING COMPLEX
Plot No 88-91, Sector: 19A,
Vashi (East), Navi Mumbai.
HAWARE’S FANTASIA BUSINESS
PARK
Plot no.47, Sector-30A,
Vashi, Navi Mumbai.
.
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HAWARE’S VASHI INFOTECH PARK
Plot No. 16, Sector – 30A,
Vashi, Navi Mumbai
HAWARE INFOTECH
PARK
Plot No. 39/3, Sector –
30A, Opposite Vashi Rail-
way Station, Vashi, Navi
Mumbai
52
LOAN DEPARTMENT
As fantasia Business Park is a vast project, it consists of more than 500 shops and
offices. The customers come for the investment as well as to start up their own business.
The customers are basically heterogeneous in nature. Out of which few of the customers
were willing to give the total cost of the shop/office as their 100% own contribution
within the specified time period. But when analyzed that the customers were not
financially stable after going through their documents, they were given the option of
commercial bank loan according to their requirements.
Marketing executives were appointed to approach different banks and were asked
to give the detailed view of our shopping complex. Every week a meeting would be held
between the trio to discuss the various factors and schemes regarding the particular bank.
As to know what are the different rates of interest been levied, and many other factors.
Most of the banks do not support the commercial loan as it involves very high risks and
suspicions. Whereas there are banks with whom we had tie-ups. They are:-
Mahanagar Co-Operative Bank
HDFC Bank
ICICI Bank
Saraswat Co-Operative Bank
Deutsche Bank
Abhyudaya Bank, etc….
We as the intermediary would collect the required document from the customer. The
bank then verified the documents and declared whether the customer is liable to repay the
loan taken by them. Within this period we had to follow up with the bank and customer
53
for paying 40% of their agreement value. Customer should pay their 40% and complete
with registration before bank proceed. Banks are able to provide up to 60%-70% loan
according to customer profile.
At the time of registrations we are required to provide instruction to customers
regarding registration. Following instruction were to be provided by us :
1. Customer have to bring Rs.3500 with them at the time of registration for printing and
stamp duty chargers.
2. Customers current 2passport size photocopy with pan card Xerox.
3. It Requires 2 witnesses also from the client’s side.
4. 5% stamp duty 1%registration paid by customer on Agreement or Market value
whichever is higher.
5. The agreement is to be done on agreement or market value whichever is higher. Market
value is to be calculated by following formula:
Market Value = Build up Area RatRs per Square Feet X
54
COLLECTION DEPARTMENT
The collection department is the main hub in this business unit, wherein the
money is collected from the customer after the booking is done. The customer can
officially book the shop only after paying the token amount. The token amount varies
with respect to place and project. The customer details are jot down in the booking
advice. This is done in order to ensure that the follow up of the particular customer is
done and also to keep a check i.e., that customer should pay the latter half of the
remaining amount within the time limit. The follow up mainly helps in maintaining
essential records which is in Microsoft Excel format. It is made sure that the database is
up to date at any given point of time so as to maintain the flow of the various activity
related financial transaction. If the customer fails to repay the amount on time, as a
penalty he/she liable to pay the interest on the remaining amount. We are there to keep
keen observation on every individual account. We had to report to Mr.Haware about
the full weeks detailed data in order to give him the current scenario of his project.
Example:
Mr. A came to the site for seeing the shop and buying it to start his own business.
We gave him a fair view of all the shops available with us, the cost and size of the shop
varied differently. The cost of the shop was dependent upon floor wise also. We had
G+2 floors. Among which ground floor was the most expensive one.
After going through our shops Mr .A decided to purchase shop at first floor.
Then we took out our booking advice which had to be filled by us which carried all the
information pertaining the client which was of our great use. After filling the booking
advice we took the token amount which had to be more than Rs.11000/-. Suppose Mr.A
purchases shop in Fantasia project, Vashi on first floor. First process is to fill booking
advice.
55
Booking advice includes:
Name of customer :
Address:
Date of booking:
Mobile number:
Office Number:
Residential Number:
Sq Ft.: Area
Flat/Shop No.
Shop cost.
Booking Amount.
After filling booking advice, booking advice will go to Haware head office,Vashi
for confirmation. When that booking goes to head office at that time shop is confirm for
that customer till registration. After registration legally that shop will transfer to Mr.A’s
name.
At the time preparing booking advice Mr.A decided to pay their 50% amount
within 15days as per their requirement and their condition, for remaining they required
bank loan. So we have to keep contact with Mr. A and remind every time about
payment, recorded all payment detail in excel sheet wherever payment is made by Mr.
A . Within 15 day Mr. A paid their 50% amount.
Mr. A Purchased on 9 May2011, 300 sq. Ft., on first floor as per demand at that
time per square rate was Rs.10,000. Therefore total cost for Mr.A’s shop is
Rs.3000000 +x /-. While booking, Mr.A gave Rs.25000/- as a token money in cheque.
Mr.A completes their 50% payment within 15days. If it could not possible from
Mr.A then they are eligible to pay interest on their remaining amount. Mr.A required 56
loan on remaining 50%. So within 15days when Mr.A was paying their part of payment
we contact with our bank and fulfil all requirement of bank.
Firstly bank required following document from customer’s side :
If business man then 3 years Income tax returned filed,if service men then
form no.16 from and 3 years salary slips.
Last 1 years updated bank pass book copy.
Residential proof :- Electricity bill, Pan card Xerox,
2 photograph
Agreement and register document.
Estimated 5 years projected balance sheet some bank required
Every bank has different criteria for different customer. Co-operative bank like Ma-
hanagar Co-Operative Bank, Abhyudaya Bank, Saraswat Co-Operative Bank provided
loan only to businessmen not for servicemen and not NRI person. Only businessmen are
eligible for their requirement. And bank’s like ICICI, HDFC etc. provide loan to busi-
nessmen as well as NRI and Servicemen. Servicemen should have net salary more than
Rs.30000.
Rate of Interest is also differing from bank’s to banks. Co-operative bank have
less interest compare to nationalised bank. Rate of Interest for commercial loan is
between 12.5% to 14.0 %. Bank’s also charger processing fees and charger for pre-pay-
ment. Processing fees also differ from bank to bank between 0.5% to 1.0%.
It took 15days to provided loan to Mr.A after providing every document
which is required.
57
SELLING & MARKETING DEPARTMENT
The ultimate aim of the Real Estate Marketing is to increase the demand for a
particular type of property and to increase the price so that the seller of the property
owns the highest amount of profit for himself. The Real Estate marketing is needful also
to make the Real Estate project work and make it familiar among the public as much as
possible. Most of the Real Estate sellers keep an amount intact just for their Real Estate
Marketing and on that basis they choose certain Real Estate Marketing Agents and give
them the responsibility to sell their property off with as much profit as possible. If the
seller’s budget is big enough then he can go for renowned Real Estate Marketing
agency and for those with small budgets the smaller agencies are also available. Most of
the big Real Estate owners who want to sell their properties prefer to go for big
marketing agencies as they have better ways to promote one's properties and have able
agents who can find the right kind of agents working for them who have better contacts
and have better ways to popularize the real estate property.
A good Real Estate Marketing Agency always puts special emphasis on the right
kind of information that one needs before starting Real estate Marketing and for that the
agency normally conducts some kind of survey to gather the right kind of information.
Later the Real estate marketing Agency depending on that report develops their ways of
marketing.
Nowadays a lot of Real estate marketing is done through the help of the Internet.
One can have various websites that do marketing for different real estate properties for
a certain amount of money. One also needs to make the website precise and filled with
to the point information. The Real estate Internet Marketing is a very simple process
and is cheaper in nature as well. Although one needs to keep the demands and the
reasonable amount of price in mind.
I was functioning under operational projects of Alliance Property Services for
Haware’s Commercial Projects namely -
Fantasia Commercial & Shopping Complex, Vashi
Vashi Infotech Park, Vashi58
Haware Infotech Park, Vashi
Fantasia Mall, Vashi
In marketing, Promotional strategies were used namely -
News paper advertisements, TIMES OF INDIA (every Friday)
Visual media ads in local cable channels
Direct Marketing(door-to-door) in commercial complexes and
Through www.iproperty.com.
Business cards can either by a waste of paper or an effective bridge between a prospect
and their potential as a long-term client. So, follow-ups of all the business cards that
were dropped in at the site office were done on a daily basis.
Brokers & agents were also approached to get their clients for the deals. Telephone
& Email follow-ups also formed a part of my job. There was face-to-face interaction
with the customers for the sale of shops/offices by convincing them to buy.
Customer Database was also maintained considering various heads like- Date of
purchase, Shop/Office no., Name of the customer, Area of the shop/office in sq.ft.,
Total value of Shop/office in Rupees, Total Received(cash/cheque) and Balance
amount.
59
CHAPTER 4:
STUDY OF SELECTED
RESEARCH PROBLEM
60
4.1 STATEMENT OF RESEARCH PROBLEM
Some achievements often require long, tortuous, bitter experiences powerful enough to
derive one to despair. But one must rise above disappointments neglect and renew the
pledge-devoted action. This study is also bound to come up with some constraints and
limitations that made efficiency of the report low and to extend deviated from its main
line of thoughts. Thought no stone was left unturned to make this study more precise,
accurate to the objectives, yet there were some limitations, which are not so worthy to
make my study more meaningful. Some of the limitations are as follows-
Time was the major constraint for conducting the study, as I am an industry-
integrated student it was difficult to devote sufficient time for preparation of report.
The study involves a lot of cost and energy.
As Faridabad is not representation of total population, the result to the extent may be
biased.
Mainly persons didn’t feel interested in giving their views in the area of real estate or
they may give fake answers so, it is quite difficult to get at exact result.
4.2 STATEMENT OF RESEARCH OBJECTIVES
The project titled procedures & documentation of APS is clearly defined & based on
systematic research design to meet the objectives of the study. The logical analysis of
various aspects of the data is made to arrive at the results of the study.
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The research process includes the following steps:
62
Defining the
problem.
Statement
of research
objectives.
Planning the research design. Planning the sample.
Collection of data.
Analyzing the data.
Formulation of conclusion. Preparation of the report.
TYPES OF RESEARCH
Exploratory Research
Descriptive Research
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Exploratory Research
It is done to generate new ideas; respondents should be given sufficient
freedom to express themselves. It is generally based on secondary data
that are readily available. Therefore unable to frame detailed research
questions.
Descriptive research
It is undertaken when researcher is interested in knowledge the
characteristics of certain groups such as age; sex; educational level;
occupation or income; interested in knowledge the proportion of it in a
given population who have behaved in a particular manner; making the
projections of a certain things; or determining the relationship between
two or more variables, descriptive study may be necessary.
4.3 RESEARCH DESIGN & METHODOLOGY
Data collection methods can be classified into two methods:
1. Primary methods
2. Secondary methods
PRIMARY METHODS
Data directly colleted by a researcher is known as Primary DataThe methods used for collecting primary data may be:
1. Survey.
2. Observation.
Sources of primary data1. Interview methods
(a) Mail interviews(b)Telephone interviews.
2. Projective technique
3. Focus group interviews
4. Questionnaire(a) Structured(b)Unstructured(c) Semi-unstructured
SECONDARY METHODS
Data not originally collected for use in the research project under consideration, but rather for use by some other person or for some other project are termed
Secondary Data -
It can be classified into two categories:1. Internal Sources
2. External Sources
Sources of secondary data
Internal Sources
Sales recordsCredit recordsInternal records Published
DirectoriesPeriodicalsFinancial recordsStatistical recordsAdvertising
External Sources
CommercialDemographic dataStore auditDiary panelExplosives
It is a type of blueprint prepared developing on various types of blueprints available for
the collection, measurement & analysis of data. The design of a research study is based
on the purpose of the study
Types of research design
Qualitative Design Research
.Quantitative Research Design.
RESEARCH METHODOLOGY ADOPTED
Research design- Quantitative and Qualitative
Sampling plan-
1. Sample method- Probability Sampling
2. Sample size- Wide
Sampling design
Cluster and Area Sampling
Sources of data
Data collected by me is 65% secondary and 35% primary.
CHAPTER 5:
ANALYSIS.
5.1 ANALYSIS OF DATA
Price Variations in India
There are unbelievable variations in the prices of real estate sector in the past. Which
mainly affect to the sale of business. Mainly there are two causes for the same:
Per Capita Income
GDP at Market Price
Per Capita Income
As depicted by fig. 2 per capita income is increasing in India, which has increased the
purchasing power of the people. Due to this over the last year (2006-07) houses prices
have raised by 10-90% and commercial property prices by 10-30% in different area of In-
dia. Correlation .996 is found between PCI and real estate prices. Thus there is a positive
correlation between per capita income and real estate prices.
GDP at Market Price
GDP, the indicator of the national growth, from the past 2-3 years is increasing by 6.5%
to7.5%. Every rupee spend on the construction add to nearly 60% of GDP. As shown by
the figure the GDP has increased from the 2463324 crore to 3529240 crore from 2002-03
to 2005-06, so it indicates that how the spending on the construction sector helps the real
estate prices to increase.
Price Variations in Different cities:
Price variations in Mumbai
Price variations in Kolkata
It is clear from the above tables that in real estate prices are touching heights. In some ar -
eas the prices are increased by 90-100%. In Gurgaon and Noida prices has jumped by as
much as 200%. The cheapest DLF apartment in Gurgaon costs Rs. 1 crore.
Clear Title
90% of the lands in India do not have clear title. The ownership is unclear, thereby creat-
ing a scarcity of land. This is due to poor record keeping and outdated complaint pro-
cesses. All updated records must be computerized to increase transparency in land owner-
ship. And special fast track courts must be set up to clear all legal land disputes in a short
period of time.
Stamp Duty & Registration
The cost of transferring land titles must be reduced from rates of 10% stamp duties to rea-
sonable levels of 3 to 5%; similar to prevailing rates in developed countries. This will en-
courage sellers to pay stamp duties, instead of trying to cheat the government, thus in-
creasing the revenue for the country. The high duties have also encouraged unaccounted
money being used in most real estate transactions in India. The registration procedure
should also be made transparent and simple so that corruption can be minimized.
Building Codes, Standards & Permissions
There are several building guidelines and standards in various cities and states, however
they are neither followed by the developers nor implemented by the authorities.
Development and Planning
In India development and planning concerned with real estate sector is not up to the
mark. The city or state authorities must use professionals to plan and execute all develop-
ment plans for cities and towns, with future development in mind. This must be done
without political compulsions. This will allow proper zoning within cities and towns,
green areas and other infrastructure systems to fall into place as the development plans
unfold.
Present Scenario in India
Up to the end of 2007 real estate sector in India was growing at a very high rate. There
was a situation of boom in this sector. The home loans were easily available and RBI was
following very liberal policies regarding the interest rates. But in 2008 the things are
changing due to the high rate of inflation in the Indian economy. There is uncertainty in
the market as share market is showing depression and the RBI is also increasing the Bank
rate leading to the increase in the interest rates. So the buying power is reducing. The ma-
jor reasons for this downfall are inflation and the low rate of GDP.
5.2 Summery Of Findings
• As the GDP increases the real estate prices also increases because there is a high de-
gree of positive correlation between the real estate prices and GDP.
• Real estate prices also increases with increase in the per capita income as there is high
degree of positive correlation between these two also.
• The infrastructure of India is also growing day by day so it adds to the better facility to
different sectors which affect the real estate prices.
• The FDI into the country affects the real estate FDI and real estate having a positive
correlation leads to the boom in this sector. Increase in FDI from 2006 to march 2007 is
10%. Earlier it was 16% and now in 2008 it is 25%.
• The interest rate also affects the real estate prices because it affects the lending and bor -
rowing by the investors.
• The growth in the real estate sector is between 25-30% in a residential sector, 10-15%
in commercial sector and agriculture sector.
• Housing sector constitute 80% of real estate in terms of value and 20% by commercial
sector.
• In residential segment, availability of easy home finance and rising purchasing power
has driven the growth. Builders are launching high-end, life style residential products to
cater to the growing bunch of high net worth individuals.
• In 2008 the growth of real estate sector is going down due to high inflation and hike in
home loan rates by the banks following the increase in bank rate and SLR by the RBI
• The outsourcing and IT/ITES industry have contributed to the demand for quality of-
fice-space. The estimated demand from IT/ITES sector alone is expected to be 150mm
sq. ft. of space across the major cities by 2010.
CHAPTER 6:
SUMMARY AND CON-CLUSION
6.1 SUMMARY OF LEARNING EXPERIENCE
I To find out the awareness among how property can be legally purchased.To
understand that how realty sector can grow in modern era.To evaluate success rate of
these policies.I have learned so many just like how to handle the market situation in
inflation?, How tohandle the customer Queries?, Preparation of the documents at the
time Purchasing, Selling,Leasing, Reselling the property?
6.2 CONCLUSIONS AND RECOMMENDATIONS
Go for the Long Shot there are no such suggestions and recommendations on my
behalf for the whole company as I am only a small part of the company. So I can’t
consider myself up to that level that I can recommend for every part of the company.
But still, I can recommend few suggestions in the field of real estate as I have
researched and gone through the same experience as others manager or more I can
conclude for the future welfare and growth of the company as one of the part of the
company, which are as follows:
The work to be done should not be delayed by the colleagues as it creates
many disturbances and Mis-coordination.
Based on major findings of the study, the researcher has come out with some
viable
suggestions:
The following recommendations are made this paper-
• Due to high prices the lower income group is not able to purchase the shops, so com-
pany should take kept in mind to protect the lower income group.
• The agriculture land covered into the commercial and residential purpose. But the
population is also increasing day by day. So company should steps for the same.
• The investors should analyze the type of project in which they are going to invest
and the potential returns from it.
• Privatization of Airports and ports needs to be speed up.
• There is a lack of proper data and management of the real estate sector so company
should take the corrective steps in this regard so that the proper estimation and man-
agement of the real estate can be made possible.
• Commonwealth is scheduled for 2010. Hotels, sport stadiums and other infrastruc-
ture to have successful games need to be expedited. This is another great opportunity
for foreign developers and investors to step in India. Thus more and more encourage-
ment should be given to foreign investors.
• Stamp duty is extremely high and must be rationalized and brought down to 2-3% as
per global practice, which is now in India varies from 5-6%.
• Due to lot of investment avenues in real estate in India, fraud cases are also increas-
ing day by day like in Navi Mumbai deconstruction of buildings. Thus careful mea-
sures and laws should be enacted to deal with these types of situations.
Conclusion
After studying all the factors of the real estate it can be concluded 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 re-
turns from the Real Estate. India needs a stronger capital market base for property fi-
nancing. 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 interna-
tional 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 in -
vestment opportunity. But one should be very careful while taking decision in this di-
rection due to rising inflation and interest rates. Legal issues should also be kept in
mind while choosing a property.
BIBLIOGRAPHY
Websites:
www.iproperty.com
www.suryarealtors.com
www.google.com
Newspapers:
The times of India
Hindustan times
QUESTIONNAIRE
1. Do you need property?
Yes No
2. What is your opinion about Real Estate?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
3. Which is the best way to buy the property?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
4. What extra benefits to purchase the property?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
5. Do you have ever purchased any property?
Yes No
6. According to you which real estate company is performing best now days and on whatbasis?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
7. Is the information provided by you above is based on your:
Knowledge
Judgment
Personal experience
Other source
8. Real Estate Sector is developed with previous record? Yes
No
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