A PROJECT REPORT

on
Buying behavior and consumer preferences in the Residential Real Estate
industry in Delhi NCR region.

By

VIJAY KUMAR

11125103913

MBA (Batch 2013-15)



Under the Supervision of Mrs. MONIKA SHARMA (Assistant Professor)


In Partial Fulfillment of Award of
MASTER OF BUSINESS ADMINISTRATION





MANAGEMENT EDUCATION & RESEARCH INSTITUTE











DECLARATION







I, VIJAY KUMAR , student of Masters of Business Administration from MERI Affiliated to
Guru Gobind Singh Indraprastha University, New Delhi, hereby declare that I have
completed this Project Report on Buying behaviour and consumer preferences in the
Residential Real Estate industry in Delhi NCR region.



I further declare that the information presented in this project is true and original to the best of
my knowledge.









--






Date:__/__/____ VIJAY KUMAR
11125103913
Place: New Delhi MBA(2013-15)





















CERTIFICATE







I, MONIKA SHARMA, hereby certify that VIJAY KUMAR student of Masters of Business
Administration at MERI Affiliated to Guru Gobind Singh Indraprastha University, New
Delhi, has completed dissertation on Buying behaviour and consumer preferences in the
Residential Real Estate industry in Delhi NCR region.





















MONIKA SHARMA
(Assistant Professor)











ACKNOWLEDGEMENT





The completion of any task depends upon the co-operation, coordination and consolidated efforts of
several resources of knowledge, energy, time and above all the proper guidance of an experienced
person. Therefore I approached this matter of acknowledgement through these lines trying my best to
give full credit where it deserves.

I wish to express my gratitude to those who helped me to complete this report with their knowledge and
expertise. I would like to take this opportunity to express my deep gratitude Mrs. MONIKA SHARMA
for giving me the opportunity to choose this topic and the guide me regarding the report.

With great esteem and reverence, I would like to thank all those who have helped me with this report. I
hope that the report will help to assimilate and learn from best practices shared by others in the
industry.
















VIJAY KUMAR

MBA(G)
2013-15









S.NO.

PARTICULARS


PAGE NO.

1

CHAPTER 1: INTRODUCTION



2

CHAPTER 2 : RESEARCH METHODOLOGY



3

CHAPTER 3: DATA ANALYSIS AND INTERPRETATION



4

CHAPTER 4 : FINDINGS



5

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS



6

BIBLIOGRAPHY



7

ANNEXURE







































Executive Summary




The real estate sector in India assumed greater prominence with the liberalization of the
economy, as the consequent increase in business opportunities and labour migration led to rising
demand for commercial and housing space. At present, the real estate and construction sectors
are playing a crucial role in the overall development of Indias core infrastructure. The real
estate industrys growth is linked to developments in the retail, hospitality and
entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals, schools)
and information technology (IT)-enabled services (like call centers) etc and vice versa. The
Project is titled Buying behavior and consumer preferences in the Residential Real Estate
industry in Delhi NCR region. The Study is mainly focuses upon identifying the buying
behavior of the customers and their preferences. The main objective of the study was to know:

To study the set of factors that a consumer takes into consideration while making a decision
of buying a home in Delhi NCR Region.
To find out the effect of brand preference on the buying behaviour of the consumer.

Buying preferences of the consumers for the type of property.

Preferences of consumers for the type of payment plan.


The study covered most of the areas in Delhi NCR including places like Gurgaon, Noida ,
Ghaziabad , Greater noida and Faridabad and most of the leading realtors .The sampling
technique used for this study was convenient sampling and the sample size was 120. A
descriptive study was conducted via questionnaire involving MCQs, Open ended and close
ended questions. The analysis is done with the help of SPSS, and shown with the help of Graphs,
bars, charts and tables.

As a result of this survey, It was fairly concluded Price is the most important factor in
making the buying decision by customers, people prefer Gurgaon the most for buying a property
in NCR also Market Reliability of a Company is the most preferred factor that the customers
look for before buying a property from it. There is also a significant relationship between the
payment plan preferred and the income level of the customer.

Chapter 1: Introduction




The real estate sector in India assumed greater prominence with the liberalization of the
economy, as the consequent increase in business opportunities and labour migration led to rising
demand for commercial and housing space. At present, the real estate and construction sectors
are playing a crucial role in the overall development of Indias core infrastructure. The real
estate industry's growth is linked to developments in the retail, hospitality and
entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals, schools)
and information technology (IT)-enabled services (like call centers) etc and vice versa.

The Indian real estate sector has traditionally been dominated by a number of small regional
players with relatively low levels of expertise and/or financial resources. Historically, the sector
has not benefited from institutional capital; instead, it has traditionally tapped high net- worth
find individuals and other informal sources of financing, which has led to low levels of
transparency. This scenario underwent a change with in line with the sectors growth, and as of
today, the real estate industry's dynamics reflect consumers expectations of higher quality with
India's increasing integration with the global economy.




Residential real estate industry has witnessed stupendous growth in the past few years owing to
the following reasons:

Continuous growth in population


Migration towards urban areas


Ample job opportunities in service sectors


Growing income levels


Rise in nuclear families


Easy availability of finance



Demand for houses increased considerably whilst supply of houses could not keep pace with
demand thereby leading to a steep rise in residential capital values especially in urban areas.

Broadly, residential real estate industry can be divided into four growth phases, as can be
seen in the chart below:

1.1 Housing growth trajectory




Phase I (2001-2005) was an initial growth phase with stabilizing residential real estate prices
following the global recovery post the dot com bust and 9/11 terrorist attacks in New York. At
the same time, there was steady growth in Indian economic activity, noteworthy recovery in
IT/ITES industry, growing urbanization and a rising trend towards nuclear families.

Phase II (2006-2008) was a high growth phase where high demand for residential real estate led
to doubling of housing prices. Demand rapidly increased due to Indias growing population,
accentuated urbanization, rising disposable incomes, rapidly growing middle class and youth
population, low interest rates, fiscal incentives on interest and principal payments for housing
loans and heightened customer expectations.

Phase III (2009-2010) witnessed substantial slowdown and part recovery in demand because of
the global economic downturn, which led to a decline in affordability and tight liquidity. The
retreat of various real estate investors, accompanied by slowdown in the capital markets, has
resulted in oversupply and falling prices.

Phase IV (2011-2014) is expected to remain a consolidation phase after slowdown. Demand is
expected to remain strong with capital values witnessing modest rise. This period is expected to
witness substantial supply of housing especially in urban areas.

In spite of the stupendous growth witnessed in the past 10 years, substantial housing shortage is
still prevalent in India. Housing shortage in India is estimated at 78.7 million units at the end
of Phase II. The overall housing shortage in India is likely to decline to 75.5 million units by the
end of Phase IV.
However, housing shortage in urban areas will continue to rise owing to migration towards urban
areas and NCR easing trend of nuclear families. Housing shortage in urban areas is estimated at
19.3 million units at the end of 2008, up from 15.1 million units at the start of 2005. Housing
shortage in urban areas is likely to touch a walloping 21.7 million units by the end of 2014.

Rural areas, on the other hand, will witness a reduction in housing shortage due to migration and
conversion of kutcha houses into pucca houses. The government's continuous focus on
improving the housing situation, especially for population below poverty line, under schemes
like Indira Awaas Yojna, Rajeev Gandhi Aawaas Yojna, Two Million Housing Programme, is
expected to reduce housing shortage in rural areas. Rural housing shortage is expected to decline
to 53.8 million units by 2013-14 from 59.4 million units at the end of 2008.

1.2 Recent industry trends

Despite strong fundamentals backing the residential real estate, the segment is highly influenced
by economic cycles.

Owing to global meltdown, the residential real estate market in India too witnessed an
astounding fall in demand and capital values, between first half of 2008 and first half of 2009.
However, the sector experienced a pickup in demand during the second half of 2009 across
major cities mainly attributed to improvement in economy. Residential projects across cities saw
several new mid-income housing projects being launched by developers to attract potential
buyers.

Demand for houses mounted as the global economy improved bringing back financial
confidence to the home buyers along with low interest rates. End-users, who had put their
purchasing plans on hold due to the fall in affordability levels and job-related uncertainties,
started booking houses.

1.2.1 Delhi


An approximate 75% end-user presence makes this a largely end-user driven market. However,
there is a heavy financier presence in this micro market. Across Delhi it has been observed that
the transactions are at rates much higher than the designated circle rates. Circle rates are the
minimum rates for the valuation of land and immovable properties in Delhi.
These rates are taken into consideration for registration of instruments related to land and
3


immovable properties in Delhi by all the registering authorities. Land transactions are estimated
at rates over 10 times of the circle rates in most parts of the capital city.
According to the Delhi Master Plan 2021, 'greater efficiency and benefits through a unified
metro transport authority' are being targeted. Acknowledging the increased vehicle density,
the government is trying to rope in the private sector to develop parking facilities through multi-
level and underground parking spaces. It is also planning an integrated multi-modal public
transport system to reduce the pressure of private transport on the road. Cycle tracks, pedestrian-
and disabled-friendly features in the arterial and subarterial roads are also being planned.


1.2.2: Gurgaon



Gurgaon markets have reached a high level of appreciation. This year launches have been
slow and the transaction volumes have been low. However, over a 4-5 year period the Gurgaon
market will see good appreciation. This will be because of employment opportunities, heavy
investor appetite and a strong broker community presence in this micro market. While Golf
Course Road (GCR) and Golf Course Road Extension areas are seeing the launch of a few high
end properties and builders are looking at higher margins, areas like Dwarka Expressway are
seeing interest on account of affordability and the bet on the future infrastructure in that area.
Price Trends in Gurgaon


1.2.3 Noida, Infrastructure issues

The market has ample supply and the demand has moderated. While the fall of Greater Noida
and Noida Extension markets has benefited Noida (rates have moved up marginally in certain
projects), the situation is one of wait and watch. Over a long term horizon, the Noida markets
will see a 10-15% YoY appreciation on the basis of the healthy infrastructure story in Noida and
its heavy end-user base.
Farmer protests over land acquisition in Greater Noida and Noida Extension have slowed down
the market. We see a downside risk in capital value over the one-year horizon due to land issues
and an oversupply situation. However, over the long term this sector will recover on account of
good infrastructure and continued demand from the sub INR 3,000/sq.ft. category home buyer.


The Gurgaon real estate market falls under the jurisdiction of the Haryana government whereas
the Noida market comes under the purview of Uttar Pradesh. Buyers tend to invest their money
based on the comfort level with the respective governments.












Greater Noida and Noida Extension:




The real estate markets in Gurgaon and Noida are driven by very different dynamics;

they are in fact at contrasting ends of the real estate spectrum in certain aspects.

The Haryana government in Gurgaon allows developers to directly acquire land from
farmers. Later, the builder applies to the government for infrastructure support for his project. So
here, acquisition is followed by the completion of the project and subsequently, infrastructure
support from the government.
However, the Uttar Pradesh government in Noida follows a different model. Here, the
government directly acquires land from the farmers, after which it draws a plan in terms of
infrastructure support for the area, and earmarks plots. The last stage involves auctioning the
plots to builders. So, infrastructure support comes before the residential project.
Gurgaon's infrastructure issues in terms of water, power and roads are a cause of concern.
The city lacks proper amenities to support the rising new supply. In comparison to Noida, the
degree of planning and road connectivity in Gurgaon appears to be flat. As discussed earlier, this
comes from the model of land acquisition followed by the government. In Noida many of the
erstwhile infrastructure issues have been resolved with better road connectivity, better water
supply in most pockets, well laid out drainage systems, and reduction of load shedding from 8-
10 hours to just 1-2 hours. The Metro has penetrated till sector 50, with the end station
being 'Noida City Centre'.

















































COMPANY PROFILE



Raas Capital is a Boutique Investment Advisory Firm founded by senior private
banker and real estate wealth management professionals to provide a integrated platform
of investment advisory solutions to Private Clients.

Its core team and domain partners includes CA, Architect, Urban Planner and MBAs
from premium institutes who have spent credible years in the areas of Private Banking,
Wealth Management, Corporate Finance, Investment Advisory and Management
consultancy before converging at Raas Capital.

Management team has profound knowledge and cumulative experience of 100 man years
in the field of banking, finance and real estate.

We offer integrated investment services in alternative investments to HNIs, NRIs,
Corporate. We are committed to provide transparent, honest and best in the class
investment advisory to our patrons.

Values

Integrity & respect
Collaboration & trust
Confidence & passion
Mentorship/Leadership/Ownership

Vision And Mission

Vision:
To be the most respected company in the field of customised investment & funding
solutions.

Mission:
To live our vision, we have established three pillars of values.
Customer focus
Process Excellence
Passion to perform

Advisory Board
Our advisory board comprises leading experts from the world of finance and investment. The
members of our advisory board leverage their deep understanding of business issues related to
loans, finance, sales, marketing, and investment, and their proven experience to provide Raas
capital insights that enable us to make business decisions that are highly profitable for all our
stakeholders.
Mr. Siddharth Chaturvedi
Mr. Ashish Gupta
Mr. Rajesh Sukhwani
Mr. Kawal Jain

Management

At Raas Capital, we attribute our continuous success to the contributions, diligence,
and hard work of each and every single employee in the company. Nevertheless, we
believe, it is our leaders who managed to elevate employee engagement, build our skills
into strengths, and enabled us to deliver exemplary performance that enhanced
organizational effectiveness. We wouldnt be nearly as successful without the guidance,
inspiration and example set by our corporate leadership.

CHAPTER 2 : Research Methodology




3.1.1 Research title

Buying behavior and consumer preferences in the Residential Real Estate industry in

Delhi NCR region.


3.1.2 Objectives of Study



To study the set of factors that a consumer takes into consideration while making a decision
of buying a home in Delhi NCR Region.
To find out the effect of brand preference on the buying behaviour of the consumer.

Buying preferences of the consumers for the type of property.

Preferences of consumers for the type of payment plan.


3.1.3 Hypothesis



H0: There is not a significant relationship between the type of property preferred and Income
level of the person .

HA: There is a significant relationship between the type of property preferred and Income
level of the person.

H1: There is not a significant relationship between type of payment plan preferred and
income level of the customer.

H2: There is a significant relationship between type of payment plan preferred and income
level of the customer.

3.4 Research Design

The methodological approach to this study is descriptive, because the researcher has attempted
to identify and explain variables that exist in a given situation and to describe the relationship
that exists between these variables.
To study the impact of consumer perception, the researcher first carried out a Descriptive
analysis with the help of Questionnaire over 120 respondents. Then to understand the different
perception of people of different areas the researcher has conducted personal interviews of
people from different demographic profiles in order to distinguish among their thoughts, view
towards the Real estate Industry in Delhi/NCR region.



3.5 Questionnaire Design



A structured questionnaire was prepared to get the most efficient and accurate results from
the survey. The research question specifies the information the decision making needs.

3.6 Data Collection



Both Primary and Secondary data was collected during the project.



Primary data was collected through questionnaire filling and interviews. The questionnaire is
designed in structured form and most of the questions were multiple choice questions. And some
open ended questions were also included in the questionnaire. Respondents were asked to
complete 5 point Likert scale in some questions.
Secondary data: The major source of secondary data is:

Internet

Propertys websites

Articles from marketing magazines

Journals


3.7 Sampling Design

There are four steps involve in the sampling design process. These steps are closely interrelated
and relevant to all aspects of the marketing research project. These steps are as follows:




3.7.1 Define the target population

The target population is the collection of elements or objects that possess the information sought
by the researchers and about which the inferences are to be made. The target population
represents the Delhi/NCR regions. The people were from different professional backgrounds.




3.7.2 Select a sampling technique

The sampling technique used in this project is Convenient Sampling Technique. It is because
equal opportunity should be provided to every kind of people in order to obtain better
result to understand the consumer perception. The selection of sampling units is left primarily
to the interviewer. Often, respondents are selected because they happen to be on right place at
the right time.


3.7.3 Determine of the sample size

Sample size refers to the number of units or respondents to be included in the study. One of the
important considerations in the sample size determination is the sample size used in the similar
studies and the resource constraints. In the study, sample size is influenced by the target
population. So, sample size of 120 customers, to obtain better results for analyzing the
perception of consumers.

3.8 Instruments Used for analysis

The basic instrument used in the research is the structured questionnaire with both open and
close ended questions. Most of the questions are multiple choice and options are provided. It is
kept so in order to maximize the response of the Respondents.













CHAPTER 3: DATA ANALYSIS AND
INTERPRETATION



4.1: Number of People who are permanent residents of Delhi NCR.



Table 4.1: Are you a permanent resident of Delhi NCR region?



PARTICULARS

FREQUENCY

PERCENTAGE


Yes

103

85.8

No

17

14.2

Total

120

100





Figure 4.1: Are you a permanent resident of Delhi NCR region?



Interpretation: The above Figure 4.1 suggests that almost 86%

of the respondents are permanent
residents of Delhi NCR. That will help the results to be more efficient and accurate.




103
17
Are you a permanent member of Delhi NCR?
yes
No



4.2: Number of people who have bought a property in Delhi NCR



Table 4.2: Have you ever bought any property in Delhi NCR?


PARTICULARS

FREQUENCY

PERCENTAGE


Yes

109

90.8

No

11

9.2

Total

120

100




Figure 4. 1 : Have you ever bought any property in Delhi NCR?





Interpretation: In the above pie chart it can be seen that 90.83% of the total respondents have
actually bought a property in Delhi and NCR region.








109
11
Have you ever bought any property in Delhi NCR
yes
No



4.3 : Number of years respondents have been living in Delhi NCR.



Table 4.3 : For how many years have you been living here?



PARTICULARS

FREQUENCY

PERCENTAGE


< 5 years

18

15.0

5 - 10 years

18

15.0

10 - 25 years

62

51.7

> 25 years

22

18.3

Total

120

100






Figure 4. 2: For how many years have you been living here?


As seen in the above pie chart, almost half of the Respondents have been staying in Delhi NCR
for last 10-25 years, on the second place are the ones living in for more than 25 years in Delhi
NCR.



18
18
62
22
For how many years have you been living here in
delhi NCR?
< 5 years
5 - 10 years
10 - 25 years
> 25 years



4.4 : Ranking of localities in order of preference.



Table : 4.4a). : Compiled ranking of localities(NCR) in order of preference.




Rank 1


Rank 2


Rank 3

Rank 4

Rank 5

Faridabad

11

6

33

33

37

Noida

36

37

19

11

17

Gurgaon

41

28

17

20

14

Greater Noida

5

34

28

31

22

Ghaziabad

35

15

17

25

30






Figure 3.4 a): Compiled ranking of localities(NCR) in order of preference.

As seen above, Gurgaon has received maximum number 1
st
Rank by the respondents. With a
high growth rate and more and more companies are opening their offices in Gurgaon. People
0
5
10
15
20
25
30
35
40
45
Faridabad Noida Gurgaon Greater Noida Ghaziabad
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
tend to prefer Gurgaon as its close to their workplace and there is a good availability of nearby
markets, malls, cinema halls , 5 star Hotels which make Gurgaon a perfect choice for property
buyers. Noida has got maximum number of Rank 2 as its growing very rapidly and most of the
big realtors are eyeing Noida as a profitable area to invest in.
Faridabad has been given maximum of 3
rd
, 4
th
and 5th Ranking, closely followed by Greater
Noida for the 3
rd
and 4
th
Rank . This may be a result of steady developmental growth in
Faridabad and Greater Noida these days. Companies are also moving their offices to these
localities as property is comparably cheap as compared to Gurgaon and Noida.



























Tabel 4.4b) Is there any specific reason for giving that locality the highest ranking?



PARTICULARS

FREQUENCY

PERCENTAGE


Yes

35

29.2

No

85

70.8

Total

120

100




Figure 4.4b) : Is there any specific reason for giving that locality the highest ranking?






Almost one third of the Respondents have a specific reason for giving the locality the highest
rating in the last part. The main reasons were mainly composed of responses such as good
locality, close to the workplace, scope of high capital appreciation, good development rate,
availability of markets, malls etc, at affordable price of properties etc.




35
85

yes
No
4.5: Number of Respondents who have bought properties in Delhi NCR for the
purpose of Investment.



Table 4.5: Have you ever bought a residential property in the Delhi NCR region for the purpose of
Investment?


PARTICULARS

FREQUENCY

PERCENTAGE


Yes

79

65.8

No

41

34.2

Total

120

100




Figure 4.5 : Have you ever bought a residential property in the Delhi NCR region for the
purpose of Investment?




The above pie chart shows that almost 66% of the Respondents have bought properties for the
purpose of Investment as Real estate is considered a good option to invest in and it gives good
returns in terms of capital appreciation and can also serve the purpose of a regular Income by
Renting and leasing.
79
41

yes
No
4.6 Type of Residential Property Preferred.


Table No. 4.6a) : What type of residential property do you prefer?



PARTICULARS

FREQUENCY

PERCENTAGE


Residential Plot

12

10

Independent House

21

17.5

Multi Story Apartment

33

27.5

Builder floor

27

22.5

Villa

12

10

Other

15

12.5

Total

120

100


Figure 4.6a) : What type of residential property do you prefer?


In the above figure, its easily seen that with 27.5% multi-storey apartments score the maximum
in terms of preference for the type of property closely followed by Builder floor with 22.5%.
Families these days have a desire to buy a floor so that the whole family could live together on
the same floor as it's hard to move up and down in case of properties with multiple floors. Also,
Independent houses and villas are comparably pricier as compared to multi-storey apartments
and builder floors.
12
21
33
27
12
15

Residential plot
Independent Hous
Multi story Apartment
Builder floor
villa
Other
Table 4.6b) Will your preference in the last question change if the property is being bought for investment purpose?


PARTICULARS

FREQUENCY

PERCENTAGE


Yes

71

59.2

No

49

40.8

Total

120

100




Figure 4: Will your preference in the last question change if the property is being bought for investment
purpose?














Surprisingly, its seen in the above data that almost 60% of the total respondents would change
their Preference for type of property if the property is being bought for investment purpose.







71
49

yes
No






4.6c) If yes , What will be your preference in that case?


Particulars Residential
Plot
Independent
House
Multi
Storey
Builder
Floor
Villa Others
For
Investment

31

25

28

19

7

9







Figure 4.6c ) : If yes, what will be your preference in that case?


In case of buying a property for Investment, a drastic change can be seen in the above data where
Residential plot gets the maximum score with 28.14%, closely followed by multi- storey
apartments with 25.5% and Independent house with 22.5%.





28
22
25
14
4
7
Residential Plot
Independent House
Multi Storey
Builder floor
Villa
Other







Table 4.6d: Data Comparision

Particulars Residential
Plot
Independent
House
Multi
Storey
Builder
Floor
Villa Others
For Living
12

20

32

25

12

19
For
Investment

31

25

29

19

7

9





Figure 4.6 d): Data Comparison




In the above Bar graph, it can be seen that the preference for buying a residential plot has jumped
from 10%(Living) to 27.5%(Investment) . Preference for buying and Independent house have
also moved higher from 17.5% to 22.5 %, whereas multi-storey apartments have gone down a
little from 27% to 25.2%.

0
5
10
15
20
25
30
35
For Living
For Investment


4.7 Preferred Payment Plan.

Table 4.8: For buying a property, what payment plan do you prefer ?



PARTICULARS

FREQUENCY

PERCENTAGE


Down Payment Plan

23

19.2

Flexi Plan

40

33.3

Construction Linked Plan

57

47.5

Total

120

100






Figure 4.7): For buying a property, what payment plan do you prefer ?


It's clearly seen above that almost half of the Respondents prefer to buy a property with the
construction linked plan where the payment is made in instalments according to the progress in
construction of the property. 33.3% People prefer the flexi plan which is a mix of construction
linked and down payment plan. Down payment plan gets the lowest preference with 19.1%.


23
40
57

Down Payment Plan
Flexi Plan
Construction Linked Plan








4.8 : Respondents awareness of Big real estate developers.


Table 4.8: Have you ever heard of Big real estate Developers such as DLF, Unitech,
Amrapali etc.?




PARTICULARS

FREQUENCY

PERCENTAGE


Yes

104

86.7

No

16

13.3

Total

120

100





Figure4.8: Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc.?




It,s seen above that a very high percentage (86.67%) of Respondents have heard about the

renowned real estate developers such as DLF, Unitech, Amrapali, etc.


104
16

yes
No



Table 4.9 : Would you like to buy a property from a renowned real estate
company (DLF, Unitech, etc) at an additional cost , if a similar property is
available at a lesser price?




PARTICULARS

FREQUENCY

PERCENTAGE


Yes

69

57.5

No

51

42.5

Total

120

100



Figure4.9 : Would you like to buy a property from a renowned real estate company (DLF, Unitech, etc) at
an additional cost , if a similar property is available at a lesser price?

From the above data it can be interpreted that people do have a brand preference in the real estate
Industry as more than half i.e. 57.5% Respondents are ready to pay an additional cost to buy a
property from a renowned real estate company such as DLF, Unitech etc.



69
51

yes
No


4.10 : Real Estate Company Preference

Table 4.10 : Please tick the Real estate companys name you would prefer buying a

Property from.


PARTICULARS

FREQUENCY

PERCENTAGE


DLF

41

35.0

Unitech

23

19.2

Supertech

18

15.0

Amrapali

5

4.2

BPTP

11

9.2

Emaar MGF

11

9.2

Ansal API

10

8.3

Total

120

100






Figure 4.10 : Please tick the Real estate companys name you would prefer buying a Property from.

DLF has got the maximum preference for buying a property from with 35% i.e. more than 1/3
rd


of the sample followed by Unitech with 19.17% and Supertech with 15% preference.
41
23
18
5
11
11
10

DLF
Unitech
Supertech
Amrapali
BPTP
Emaar MGF
Ansal API
Table 4.11: Please tick the options that you take into consideration while
choosing a real estate company to buy a property from.



PARTICULARS

FREQUENCY

PERCENTAGE


Market Reliablity

48

40

Financial stability

23

19.2

Word of mouth

6

5

Customer service

17

14.2

Earlier completed projects

15

12.5

Any other

11

9.2






Figure 4.11: Please tick the options that you take into consideration while choosing a real estate company to
buy a property from.

Most people choose market reliability(40%) as the main consideration before buying a property
from a real estate company followed by , financial stability with 19.17% , customer service with
14.17% and success of earlier completed projects with 12.5%
48
23
6
17
15
11

Market Reliablity
Financial stability
Word of mouth
Customer service
Earlier completed
projects
Any other
Table 4.12: Ratings of key factors while making buying decision

Table 4.12a) : Please rate the following key factors on a scale of 1 to 5 that you take into consideration
while making a buying decision for a residential property:- a)Price


PARTICULARS

FREQUENCY

PERCENTAGE


Least important

17

14.2

Somewhat important

22

18.3

Neutral

11

9.2

Important

28

23.3

Most important

42

35.0

Total

120

100






Figure 4.12a): Please rate the following key factors on a scale of 1 to 5 that you take into consideration
while making a buying decision for a residential property:- a)Price

Almost 35% respondents have given Price the most Important rating, that means price is the
most crucial variable which highly affects the buying decision of the buyer.
17
22
11
28
42

Least important
Somewhat
important
Neutral
Important
Most important

Table 4.13b) : Please rate the following key factors on a scale of 1 to 5 that you take into
consideration while making a buying decision for a residential property:- b)Privacy


PARTICULARS

FREQUENCY

PERCENTAGE


Least important

16

13.3

Somewhat important

30

25.0

Neutral

23

19.2

Important

33

27.5

Most important

18

15.0

Total

120

100





Figure 4.12 b) Privacy




Privacy gets the maximum rating as Important with 27.5%.

16
30
23
33
18

Least important
Somewhat
important
Neutral
Important
Most important
Table 4.12 c) : Please rate the following key factors on a scale of 1 to 5 that
you take into consideration while making a buying decision for a residential
property:- c)Location


PARTICULARS

FREQUENCY

PERCENTAGE


Least important

22

18.3

Somewhat important

23

19.2

Neutral

11

9.2

Important

40

33.3

Most important

24

20.0

Total

120

100




Figure 5: c) Location




Location also gets the maximum rating as Important with 33.33%, followed by most

Important with 20%.

22
23
11
40
24

Least important
Somewhat
important
Neutral
Important
Most important
Table 4.12 d :Please rate the following key factors on a scale of 1 to 5 that you
take into consideration while making a buying decision for a residential
property:- d) Neighbourhood


PARTICULARS

FREQUENCY

PERCENTAGE


Least important

28

23.3

Somewhat important

17

14.2

Neutral

35

29.2

Important

23

19.2

Most important

17

14.2

Total

120

100




Figure 4.12 d) : Neighborhood

Neibourhood get the neutral responses from the respondent which is around 30%.

28
17
35
23
17

Least important
Somewhat
important
Neutral
Important
Most important
Table 4.12e) :Please rate the following key factors on a scale of 1 to 5 that you
take into consideration while making a buying decision for a residential
property:- e)Area/size of the property


PARTICULARS

FREQUENCY

PERCENTAGE


Least important

40

33.3

Somewhat important

16

13.3

Neutral

10

8.3

Important

36

30.0

Most important

18

15.0

Total

120

100




Figure 4.12e) : Area/size of the property


Area/size of a property gets maximum rating as least important with 33.33%.


40
16
10
36
18

Least important
Somewhat
important
Neutral
Important
Most important
Table 4.13 f) : Please rate the following key factors on a scale of 1 to 5 that you
take into consideration while making a buying decision for a residential
property:- f) Parking facility



PARTICULARS

FREQUENCY

PERCENTAGE


Least important

40

33.3

Somewhat important

16

13.3

Neutral

10

8.3

Important

36

30.0

Most important

18

15.0

Total

120

100




Figure 4.12 f) : Parking facility


Parking facility gets equal ratings of Somewhat important and important with 24.17%.
40
16
10
36
18

Least important
Somewhat
important
Neutral
Important
Most important
Figure 4.13 g) : Please rate the following key factors on a scale of 1 to 5 that you take into
consideration while making a buying decision for a residential property:- g) Proximity to
workplace


PARTICULARS

FREQUENCY

PERCENTAGE


Least important

17

14.2

Somewhat important

22

18.3

Neutral

24

20.0

Important

22

18.3

Most important

35

29.2

Total

120

100



Figure 4.12 g) : Proximity to workplace



Proximity to workplace also gets the maximum rating of most important with 29.17%.



17
22
24
22
35

Least important
Somewhat
important
Neutral
Important
Most important
Table 4.13 h) :Please rate the following key factors on a scale of 1 to 5 that you
take into consideration while making a buying decision for a residential
property:- h) Interiors


PARTICULARS

FREQUENCY

PERCENTAGE


Least important

17

14.2

Somewhat important

41

34.2

Neutral

23

19.2

Important

28

23.3

Most important

11

9.2

Total

120

100




Figure 4.12 h): Interiors





Interiors get maximum rating as somewhat important with 28.5%.

17
41
23
28
11

Least important
Somewhat
important
Neutral
Important
Most important
4.13 Factors Ratings


PARTICULARS Price Privacy

Location Neibourhood Area/siz
e of
Propery
Parking Proximity
to
workplace
Interiors

Least important

17

16

22

28

40

23

17

17

Somewhat
important

22

30

23

17

16

29

22

41

Neutral


11

23

11

35

10

22

24

23

Important


28

33

40

23

36

29

22

28

Most important

42

18

24

17

18

17

35

11




Figure 4.13: Factors Ratings




Least important is the area of the property.

Somewhat important are the interiors, the property Respondents are neutral to the neighbourhood
Important is the location.
Most important is the price of the property.
0
5
10
15
20
25
30
35
40
45
Least
important
Some what
important
Neutral Important Most
important
price
privacy
location
neighbourhood
Area/size of property
parking
proximity to workplace
interiors
4.14: Important sources of Information



Sources of
information


News
papers

Television


Radio

Property
sites

Developer
s site

People references

others

Yes

74

68

69

79

78

62

20

No

46

52

51

41

42

58

100

Total

120

120

120

120

120

120

120



Figure 4.14 h): Source of Information.






From the compiled data for the sources of information , it can be seen that Property sites(79) are
the most preferred source of information , very closely followed by developers site(78) and
newspaper (74) .



0
10
20
30
40
50
60
70
80
90
Newspaper Television Radio Property
sites
Developer's
site
People
references
Other
4.15: Income Level of the Respondent.

Table 4.15: What is your annual Income?


PARTICULARS

FREQUENCY

PERCENTAGE


< 10 Lakhs

30

25.0

10 25 Lakhs

35

29.2

25 50 Lakhs

24

20.0

> 50 Lakhs

31

25.8

Total

120

100





Figure 4.15 : Income level





29.17% of the total respondents are from 10-25 lakhs annual income level group , closely
followed by 25-50 lakhs income group .

30, 25%
35, 29%
24, 20%
31, 26%

< 10 Lakhs
10 25 Lakhs
25 50 Lakhs
> 50 Lakhs
CHAPTER 5 : FINDINGS




85.83% of the respondents are permanent residents of Delhi NCR.

90.83% of the respondents have bought properties in Delhi NCR region.

51.67% of the respondents have been living in Delhi NCR from 10-25 years, 15% from5-
10 years and 15% from less than 5 years and 18.33% from more than 25 years.

Respondents have given no.1 rank to Gurgaon in terms of preference for buying property,
because of the recent developments and high growth rate. Noida have got the second rank
as its also reaching to the level of Gurgaon , more and more offices are now being
operated in Noida and big realtors are now eyeing Noida to invest in .

65.83% of the respondents have bought a residential property in the Delhi NCR region
for the purpose of Investment.

27.5% of the respondents prefer buying Multi-storey apartments, 22.5% prefer to buy
Builder floors, 17.5% of the respondents prefer buying Independent house and rest 32.5%
composed of the others.

59.17% of the respondents have said that they would change their preference made in the
last question if the property is being bought for Investment purpose.

In case of buying property for Investment purpose, 28.14% people would prefer buying
Residential plot, 22.5% would prefer Independent house ,25.3% would prefer Multi-
storey apartments and rest would go for other type of properties.

Residential plot jumped from 10% to 27.5% in case of investment purpose, independent
house moved from 17.5% to 22.5%, multi-storey fell from 27% to 25.2%.

47.50% of respondents prefer the construction linked plan, 33.33% prefer flexi plan and
19.17% prefer the Down payment plan.

86.66% of the respondents have heard of Developers such as DLF, Unitech, Amrapali
etc.

57.5% Respondents are ready to pay an additional cost to buy a property from a
renowned real estate company such as DLF, Unitech etc.


DLF has got the maximum preference for buying a property from with 35% i.e more than
1/3
rd
of the sample, followed by Unitech with 19.17% and Supertech with 15%
preference.
40% of the respondents choose market reliability while making a buying decision,

17% would choose financial stability, customer service 14.17% and earlier completed
projects 12.5%.

Price is the most important factor while making a buying decision, Interiors is also
somewhat important.

Property sites(79) are the most preferred source of information , very closely followed
by developer's site(78) and newspaper (74) .

29.17% of the total respondents are from 10-25 lakhs annual income level group , closely
followed by 25-50 lakhs income group.

Price is having a negative correlation (.010) with privacy (-.234), It also shows a positive
correlation between price and location (.597) also has a positive correlation with
neighborhood (.313) and a negative correlation with the interiors (-.256).

Privacy shows a very strong correlation with neighborhood (-.452), location shows a
positive correlation with the neighborhood (.338), a negative correlation is found in
relation with the area or size of the property (-.318).

Neighborhood also has a strong negative correlation with the parking facility (-.546).

Area/size of the property shows a positive correlation with the proximity to workplace

(.228) , Parking facility shows a positive correlation with the interiors























CHAPTER 6: CONCLUSION AND RECOMMENDATIONS


6.1Conclusions



1. There is a significant increase in people coming from different states and buying residential
properties in Delhi and NCR region as these areas are now the hub of Multinational corps.

2. Gurgaon is the most preferred locality in NCR region in terms of preference of the customers
mainly because of high growth rate and more and more companies are opening their offices in
gurgaon. People tend to prefer gurgaon as its close to their workplace and there is a good
availability of nearby markets, malls, cinema halls, 5 star Hotels which make Gurgaon a perfect
choice for property buyers. Noida being the second most preferred locality for the customers in
terms of buying a house is also climbing the ladder very quickly, the growth rate is rising and
most of the big realtors are eyeing Noida as a profitable area to invest in.

3. There is a significant increase in the people who buy properties for the purpose of Investment as
Real estate is considered a good option to invest in and it gives good returns in terms of capital
appreciation and can also serve the purpose of a Regular Income by Renting and leasing.

4. Multi-storey Apartments is the most preferred type of property, closely followed by builder
floors. Families these days have a desire to buy a floor so that the whole family could live
together on the same floor as it's hard to move up and down in case of properties with multiple
floors. Also, Independent houses and villas are comparably pricier as compared to multi-storey
apartments and builder floors which are more affordable.

5. More than half of the people change their preference of property type when the buying decision
is for the purpose of Investment. For investment purpose, people tend to prefer residential plots
and Multi storey apartments.

6. Construction linked payment plan is the most favourite among the customers because then the
customer is having time to arrange funds in between the instalment dates. Flexi plan is the
second most preferred payment plan followed by the down payment plan where the whole
payment is usually made within 2-3 months.

7. Nowadays, People are more aware of Brands such as DLF, Unitech, Amrapali group etc in the
Real Estate Industry. Customers are also ready to pay an additional cost to buy from such
Renowned real estate developers.

8. DLF is the most preferred real estate company because of its trust and long existence in the
Industry. Unitech is second and is closely competing with the DLF. Supertech is third in the list,
followed by BPTP , Emaar MGF,Ansal API and Amrapali.

9. Market Reliability of a Company is the most preferred factor that the customers look for before
buying a property from it . Financial stability is the second in the list, followed by customer
service and earlier completed projects.

10. Price is the most important factor in making the buying decision because in India, customers are
very price sensitive and a small variation in price can lead to great changes in demand. Location
is also an important factor.

11. As customers are now more educated and have access to the internet, the property sites such as
Makaan.com, 99acres.com or magicbricks.com are the most used source to gather information
regarding the real estate in Delhi NCR. The second source of information is the Developers site,
followed by newspapers, radio, television etc.

12. There exists a significant relationship between the income level of the customer and the payment
plan preferred. Clearly, with the help of the survey we can conclude that the customers having an
annual income of more than 50 lacs prefer the Down payment plan as they are having sufficient
funds to purchase the property in one go, whereas customers in the less than 10 lacs income level
prefer the construction linked plan as the payment is made in instalments.

13. People who prefer the Down payment plan are likely not to pay additional cost to buy a property
from a renowned real estate company (DLF, Unitech etc) and same is the case with flexi plan but
people preferring the construction linked plan are likely to go for a brand and ready to pay any
additional cost for buying the property.

14. There is also a significant relationship between the Source of information gathering and the
annual Income on the customer. Customers who prefer to gather information through television
are from less than 10 lacs annual income group and customers who take help of property sites are
from the 10-25 lacs annual income group.

15. People who are in less than 10 lacs annual income level prefer buying multi-storey apartments,
people in 25-50 lacs income group prefer buying other type of properties such as serviced
apartments and studio apartments and people with more than 50 lacs annual income prefer
buying villas and multi-storey apartments.

16. Price is having a negative correlation with privacy that means a person rating price as most
important factor is likely to rate privacy as least important or somewhat important. It also shows
a positive correlation between price and location that means a person rating price as most
important factor would most probably rate location as most important as well, price also has a
positive correlation with neighbourhood and a negative correlation with the interiors.

17. The privacy factor has a negative correlation with neighbourhood that means a person who
considers privacy as the most important factor while making a buying decision for a property
would consider neighborhood as the least important factor.

18. Location shows a positive correlation with the neighbourhood, a negative correlation is found in
relation with the area or size of the property that means that a person preferring a good location
would be happy to forgo the big size of the property.

19. Neighbourhood has a strong negative correlation with the parking facility that means a person
who prefers neighborhood of a property is likely to forgo the parking facility.


20. Area/size of the property is having a positive correlation with the proximity to workplace.

Parking Facility shows a positive correlation with the interiors. A person who considers parking
facility as the most important fact is likely to consider the interiors of the house as the most
important factor as well.









































6.2 Recommendations




1. As there is a significant increase in people coming from different states and buying residential
properties in Delhi and NCR region as these areas are now the hub of Multinational corps. The
real estate developers should look to focus on the residential areas near the business parks and
corporate offices as people do tend to prefer locations which are in close proximity to their
workplace.

2. Gurgaon is the most preferred locality in NCR region in terms of preference of the customers
mainly because of high growth rate and more and more companies are opening their offices in
Gurgaon. The realtors should mainly focus upon investing in Gurgaon and Noida more as there
is a scope for a high property demand.

3. There is a significant increase in the people who buy properties for the purpose of Investment as
Real estate is considered a good option to invest in and it gives good returns in terms of capital
appreciation and can also serve the purpose of a Regular Income by Renting and leasing.


4. Multi-storey Apartments is the most preferred type of property, closely followed by builder
floors. Families these days have a desire to buy a floor so that the whole family could live
together on the same floor as it's hard to move up and down in case of properties with multiple
floors. The real estate developers should mainly focus upon offering multi-storey apartments and
builder floors more than the other types of properties as there is a rising demand for apartments
and builder floors.

5. Nowadays, People are more aware of Brands such as DLF, Unitech, Amrapali group etc in the
Real Estate Industry. Customers are also ready to pay an additional cost to buy from such
Renowned real estate developers. So, the developers can take the advantage of it , by charging an
additional cost for their properties and giving better
services and security.

6. DLF is the most preferred real estate company because of its trust and long existence in the
Industry. Unitech is second and is closely competing with the DLF. Supertech is third in the list,
followed by BPTP , Emaar MGF,Ansal API and Amrapali. Dlf should look to maintain its
domination in the real estate industry and the other developers should look to replace Dlf from
the top spot.

7. Market Reliability of a Company is the most preferred factor that the customers look for before
buying a property from it. Financial stability is the second in the list, followed by customer
service and earlier completed projects. So, the real estate companies should focus on creating a
good brand image in the market and should try to reflect as a reliable unit. Companies should
also try to maintain their financial stability.

8. Price is the most important factor in making the buying decision because in India, customers are
very price sensitive and a small variation in price can lead to great changes in demand. Location
is also an important factor.

9. As customers are now more educated and have access to the internet, the property sites such as
Makaan.com, 99acres.com or magicbricks.com are the most used source to gather information
regarding the real estate in Delhi Ncr. The second source of information is the Developer's site,
followed by newspapers, radio, television etc. The companies in the real estate industry should
maintain good deals with these property sites by offering a good commission, and using different
means of advertising on those property sites.


10. Neighbourhood has a strong negative correlation with the parking facility that means a person
who prefers neighbourhood of a property is likely to forgo the parking facility. So, the realtors
should focus more on offering a good neighbourhood rather than putting high costs for providing
the parking facilities.
















Bibliography


WEBSITES:-


-WWW.RAASCAPITAL.COM

-WWW.SCRIBD.COM

-WWW.WIKIPEDIA.COM

-WWW.PROPERTYWALA.COM

-W WW.MAGICBRICK.COM

- WWW.99ACRES.COM


REFFERED BOOKS:-


- KOTHARI C.R.-"RESEARCH METHODOLOGY" NEW DELHI TATA MCGRAW HILL IN (95-102)

-KOTLER PHILIP- " MARKETING MANAGEMENT" ANANLYSIS PLANNING IMPLEMENTATION AND
PLANNING





































Annexure




Questionnaire





Q1 . Are you a permanent resident of Delhi NCR region?


a) Yes b) No


Q2 . Have you ever bought any property in Delhi NCR?


a) Yes b) No


Q3 . For how many years have you been living here?


a) <5 years b) 5-10 Years c) 10-25 years d) >25 years
Q4. Please rank these localities of NCR in order of preference for buying a property:-
a) Faridabad b) Noida c) Gurgaon
d) Greater Noida e) Ghaziabad


Is there any specific reason for giving that locality the highest ranking?


a) Yes b) No


If yes, Please mention it here .


Q5 . Have you ever bought a residential property in the Delhi NCR region for the purpose of
Investment?


a) Yes b) No


Q6. What type of residential property do you prefer?


a) Residential Plot

b) Independent house

c) Multi-storey Apartment
d) Builder Floor
e)Villa
f) Other


Q7 . Will your preference in the last question change if the property is being bought for
investment purpose?


a) Yes b) No




If yes, what will be your preference in that case .


Q8 . For buying a property, what payment plan do you prefer ?


a) Down Payment
b) Flexi plan
c) Construction linked plan


Q9 . Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc. ?


a) Yes b) No


Q10 . Would you like to buy a property from a renowned real estate company (DLF, unitech etc)
at an additional cost , if a similar property is available at a lesser price?

a) Yes b) No

Q11 . Please tick the Real estate companys name you would prefer buying a Property from.
a) DLF
b) Unitech
c) Supertech
d) Amrapali
e) BPTP
f) Emaar MGF
g) Ansal API


Q 12 . Please tick the options that you take into consideration while choosing a real estate company
to buy a property from :-


a) Market Reliability b) Financial Stability c) Word of mouth
d) Customer Service e) Earlier completed projects

f) If any other,
Please specify






Q13 . Please rate the following key factors on a scale of 1 to 5 that you take into consideration
while making a buying decision for a residential property. (1=Least Important , 5 = Most
important)

a) Price
b) Privacy
c) Location
d) Neighbourhood
e) Area/size of the property
f) Parking facility
g) Proximity to workplace
h) Interiors


Q14 . Is there any special feature that has not been mentioned in the last question and is
important to you?


----------------------------------------------------------------------------------


Q15 . Please mark the options from which you take help while making a buying decision?


a) Newspapers b) Television
c) Radio d) Property sites(Makaan.com,99 acres.com)


e) Developer's site f) People's responses


g) Any other


Q16 . What is your Annual Income?


a) <10 lacs b) 10-25 lacs
c) 25-50 lacs d) >50 lacs




Personal Details :


Name Age
Sex Occupation