Professional Documents
Culture Documents
A STUDY ON
A STUDY ON EFFECTIVE SALES PROMOTION IN REAL ESTATE
MARKETING
SUBMITTED BY
Mr.ABUSUFIYAN CHAUDHARY
SUBMITTED TO,
THE UNIVERSITY OF MUMBAI
FOR THE PARTIAL FULFILLMENT OF BACHELOR OF
MANAGEMENT STUDIES
ACADEMIC YEAR 2014-2015
TYBMS- SEM 5
SEAT NUMBER: 1092280
UNDER THE GUIDANCE OF
MRS. DAINA RAYEN
CLARAS COLLEGE OF COMMERCE
YARI ROAD,
ANDHERI (WEST)
MUMBAI- 400053
ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude and deep regards
to my guide Mrs. DIANA RAYEN & also Mr. FAISAL TANWAR (BMS
CO-ORDINATOR) for their exemplary guidance, monitoring and constant
encouragement throughout the course of this thesis. The blessing, help and
guidance given by them from time to time shall carry me a long way in the
journey of life on which I am about to embark.
I would also like to thank SHRI AJAY KAUL SIR and PRINCIPAL
DR.ZAHIDA SHAIKH for giving me this opportunity to showcase my hard
work.
I am also grateful to Faculty Claras College of Commerce for
continuous and deliberate discussion on the topic and indeterminable burden
taken by her in helping me during the project.
I thank almighty God, my Parents, siblings and my friends for their
constant support and encouragement without which this assignment would not
be possible.
INDEX
TABLE OF CONTENT
PAGE NO.
1.)INTRODUTION OF ORGANIZATION
2.)ABSTRACT
3.)LITERATURE REVIEW
4.)OBJECT OF STUDY
26
5.)RESEARCH METHODOLOGY
1.)
2.)
3.)
4.)
5.)
6.)
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RESEARCH DESIGN
SAMPLING DESING
SOURCES OF DATA
DATA COLLECTION TOOLS
METHOD OF DATA COLLECTION
TOOLS AND TECHNIQYES OF ANALYSIS OF
DATA
7.)
6. )CONCLUSIONS
54
55
8.)FINDINGS /RECOMMENDATION
58
9.)LIMITATIONS
60
10.)OVERALL EXPERINCE
61
11.)QUESTIONARIES
66
12) BIBLIOGRAPHY
68
INTRODUCTIONS
INTRODUTION OF ORGANIZATION
Amrapali Group Developing India is the provide all type of land in Delhi, Greater Noida,
NCR, Noida. If you are seeking to Amrapali sapphire Sale Real Estate, we offer all the
support and services to make it easy for you.
Greater Noida and Noida is involved in wide spectra of services in real estate dealing
related services and assure you to provide the best of all at competitive prices. We provide
services such as sale of residential and commercial properties .We are worked for last 10
year in real estate & construction.
Today real estate market in is growing at an amazing pace. Many people have started
relocating to the NCR area to enjoy better quality of life. Every other day there is new
project announced and many options are available to buy your dream home, suiting your
budget. You could buy a ready to move-in flat to meet your immediate needs or you could
invest in new projects launched or buy in resale of a project under construction.
ABSTRACT
The realty industry today has changed so much that each sector needs special skills to make
it work efficiently. All over the world, prices are fluctuating. Global agencies monitor
trends in the top influential cities. With many foreign investments in India and NRIs
returning, the Indian property market watch is on the top most of every big agency.
Mumbai is the costliest city to live in Asia. To understand real estate marketing one
should at least have the minimum knowledge required to step into the complex industry.
Out there, plenty of smart operators are looking for suckers. They may not be dishonest
but will technically confuse you to pay higher price and outsmart you. Therefore, if you
know your onions and the deep layers beyond the skins it helps to get the best.
The purchasing power of the new generation of Indians has increased. They are investing
in real estate in a big way- in terms of investment and assets. People have acquired refined
tastes in housing needs and become professional in dealing with builders. Financial
companies and banks have given a boost to real estate marketing as well. To add to this the
government has allowed foreign investors also to test the market conditions here have
helped. Every area of real estate be it industrial, retail space, malls, office complexes,
residential colonies, hospitals, clinics and other healthcare units have a vast potential for
growth.
As more opportunities grow for people to work they also wish to invest in places close by
to live in. Builders or developers in various regions are now separately marketing each
space. Even home loan companies and banks are independently marketing the properties
they are giving loans. This helps them to guide their dedicated clientele and ensure the
marketing trends remain closely monitored for future development.
They generally have customer relationship executives who are assigned (usually area wise)
to assist customers in making decisions. They do have good knowledge, are professionals
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on the job and customers do benefit if they are not very familiar with various technicalities.
Each company has its own marketing device and portfolio to attract
Customers. Various tie ups with groups in India and overseas have taken place this year
with increase in FDI. MGF Developments based in New Delhi and Emmar Properties
based in Dubai have joined hands in the first quarter of 2006 for investments within the
country. Nowadays most of real estate focus is on shopping malls and residential
complexes. In some areas down south, the thrust is on IT parks, and corporate offices and
resorts.
However, on the other side everyone or every other executive does not feel the real estate
sector in India is being well marketed or managed. Yes, there are some gray areas, which
need to be covered up. For instance, foreigners who wish to invest or firms who are
looking at Indian partners are feeling the crunch of bureaucracy and familial ways of
working. This obviously makes it difficult for them to do business. The potential is there
but it needs to be tapped wisely. A proper way is to have real estate marketing with the
right professionals. Everyone wants to cash on the business.
After one and a half years of gradual consolidation, real estate in India has fathomed its
own comfortable ground, and is poised at the right threshold to take a giant leap in years to
come. While a differential pace of strengthening is evident across sectors, geographies and
segments, several property market indicators point to the fact that the industry has indeed
bottomed out in the current cycle. The fears of a possible double dip recovery have given
way to beliefs in the sustained healthy levels, if not a rapid growth.
The experience thus gained in this slowdown is invaluable and will serve real estate
strategists for years to come. The various stakeholders in the entire supply chain the
material manufacturers, developers, property consultants, occupiers, investors and policy
makers, have all emerged stronger and primed than yesteryears. And, if we have taken our
lessons right, caution and diligence would be the keywords for the industry in the
medium term.
On one hand, the stakeholders cant afford to sway on the riding waves of healthy demand,
and lose the ground advantage that they have so painfully regained by adapting to the
rapidly changing business environment. And on the other, the emerging opportunities
should be targeted with an unmatched fervor of potential and pragmatism.
The year 2011 would usher a new decade of opportunities for Indian real estate, which will
be a test of sorts for its stakeholders between these two fringes of the fulcrum. And the
winners would be the ones who balance caution with diligence evaluating all the potential
opportunities with pragmatism.
IT/ITES and BFSI would continue to account for 60-70% of office demand
Launch of Ultra Low Cost (ULC) Housing by private developers Housing for
All
Sustainability to gain focus as the industry looks forward towards IGBC Green
Homes standards
Retailers would continue to expand beyond Tier I into Tier II and III cities
LITRATURE REVIEW
The real estate market in India has become so huge that to get every thing or anything
specific within one roof is easy and difficult at the same time. With the kind of commercial
and residential property available on rent/lease/ ownership one has to refer to portals or
good companies dealing in various listings. Generally typical real estate listing would
necessarily include the following heads:
Properties Area wise - Separate sections of residential and commercial nature.
Within this are included partnership, brokerage, requiring agents, and direct deals with
builders. The property rates of each area are usually determined every two three years
unless in a particular area shoots up due to construction or upcoming prestigious piece of
property (i.e. a five star hotel, IT corporate park, shopping mall or multiplex). In such areas
the rents and buying properties do increase because of job opportunities and close
residential facilities.
Property Valuation
Many old properties may not be in very good condition. But they still are valuable. Why?
Mostly because they can be refurbished or rebuilt entirely. This is why they usually fetch a
good price. But one cannot depend only on brokers or agents or property owners to
evaluate the land. Sometimes the owner is greedy and expects a bigger price, sometimes an
agent in between quotes a higher price so that it benefits him, sometimes the buyer may be
just rich and may not have rival bidders or competitors so quotes a fancy pricey according
to his choice.
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But now the industry has attained a level of professionalism and valuers who have correct
knowledge and are impartial are used to assess the property. Even if it has to be handed
over from one brother to another the valuer needs to correctly assess the worth of the
property. Usually a lawyer does the valuation so that a stamp of legality can be given to the
property and no disputes rise thereafter. A known property valuer will charge a good
amount to the job.
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A regular monitor or a property watch is kept for any changes of rates in any zones. Some
also feature overseas properties and help in getting information to get there. A real estate
listing becomes popular with every new additional thing that will eventually help the client.
The real estate market in India has become so huge that to get every thing or anything
specific within one roof is easy and difficult at the same time. With the kind of commercial
and residential property available on rent/lease/ ownership one has to refer to portals or
good companies dealing in various listings. Generally typical real estate listing would
necessarily include the following heads:
Designers are usually required by architects or by individuals who need homes to be
designed. Some firms employ designers, some of them free lance or some do just
renovation work. Depending on the need they are listed too. They also deal with people
with knowledge of Vastu and Feng Shui-both applications are in vogue with clients.
Sales Promotion at different Level and different programme
One of the most difficult marketing decisions facing companies is how much to spend on
promotional John Wanamaker, the departmental - store magazine, said, "I know that half of
my advertising is wasted but I don't know which half."
Thus it is not surprising that industries and companies vary considerably in how much they
spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in
cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry,
a low and high spending companies can be found.How do companies decide on their
promotion budget? There are mainly four methods of this
Affordable Method:
Many companies set the promotion budget at what they think the company can afford. One
executive explained this method as follows : "Why, its simple. First I go upstairs to the
controller and how much they can afford to give us this year. He says a million and half.
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Later, the boss comes to me and asks how much we should spend and I say Oh about a
million and half."
It is a method which is uncertain one and makes long term planning difficult.
Neither argument is valid. There are no grounds for believing that competition knows
better what should be spent on promotion.
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Sales Promotion
Promotion is the final element in the marketing mix. After the nature of product is decided,
its price fixed and the methods of distribution decided, the manufactures has to take
effective steps in meeting the consumers in the markets. In the present consumer oriented
markets it is the duty of manufacturers to know what is required by the consumer. It is also
their duty to make the customers know where, when how and at what prices. The products
would be available.
Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity :
1. Mass impersonal selling methods (Advertising).
2. Face to face personal selling (Salesman ship).
3. Activities other than personal selling and advertising such as point of purchase display
(P.O.P.) show and exhibitions, demonstrations and other non securing selling efforts. This
form of activity is called Sales Promotion.
1. A pull blend is one in which mass impersonal, sales efforts are given the greatest
emphasis. The purposes of pull blend to pre-sell to the final consumers. So that they
demand the product at the retail level of distribution. The firm adopting this strategy would
spend more on advertising and sales promotion rather than in personal selling. These
efforts pull down the product from the manufacturer.
2. A push blend emphasizes personal selling. Naturally firms adopting this method develop
a strong sales force at both the distributor and the dealer level. This method would tends to
push the product through the channel of distribution.
Acc. to W.Q. Kelly Opines :"Muddled misused misunderstood that is sales promotion Acc. to him the field of sales
promotion as a marketing activity is still vaguely defined and organized.
There is no universally accepted distribution between these two terms. To same advertising
includes all forms of mass media communication directed towards influencing the end
consumer. Sales promotion on the other hand, includes the form of mass communication
directed towards information and influencing the channel of distribution (e.g. distributors,
retailers etc.). Hence a price of product literature distributed by retailers in sales promotion.
These sales promotion merges on one side in to advertising and on the other in to personal
salesman ship. It is concerned with the dissemination of information to whole salers,
retailers, customers (both actual and potential, and to the salesman).
Sales promotion is concerned with the creation. Application and dissemination of material
and techniques that supplement advertising and personal selling. Sales promotion makes
use of direct mail, catalogues, trade shows, sales contests, premiums, samples, windows
displays and other aids. Its purpose is to increase the desire of salesman, distributors and
dealers to sell a certain brand to make consumers more eager to buy that brand. Personal
selling and advertising do include prospects to make these decisions. Sale promotion
provides an extra stimulus.
Objective of Sales Promotion
1. To increase sales directly by publicity through media which are complementary to press
and poster advertising.
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2. To disseminate information through sales man dealers etc. So as to insure the product
getting in to satisfactory use by the ultimate consumer.
3. To attract new consumer.
4. To face the competition effectively.
5. To help salesman in selling more to the retailers and consumers.
doubt clear. It can be used to restimulate an old product. A good demonstration with a great
dealer of action will draw heavy crowds in to the store and will attract attention to the
product.
(iii) Special Display and Shows:These are in seasonal in character but could be arranged in an elaborate manner and for all
the products of an company. Usually these are arranged along with trade fair and
exhibition. Besides effecting sales these shows impress the companys name generally on
the public.
Many experts on sales promotion fed that Off Schemes are among the weaker and less
desirable methods of promotion. These can be trade resentment particularly when the
retailer raises the price to retain his margin. Secondly that is not conductive to building up
brand loyalty. Consumers may simply shift to the products that offer this scheme.
3. Samples:In the hope of converting a prospect into a customer a sample (Some quantity of the
product) may be given. This helps the consumer to verify the real quality of the product.
Various pair manufacturing companies offer this method. For developing brand loyalty this
method is quite useful. Sampling is a fast method of demand creation because one knows
the result as soon as the consumer has had time to use the sample and buy the brand.
Disadvantage of Sampler:Offering sample in quit expensive. There is the cost of producing samples. The distribution
costs are also high. Sample have to be mailed to potential customers or to be distributed
through retail shops. There are also problems when the real product does not resemble the
sample supplied.
4. Money Refund Offer:An offer usually stated on the package is that manufacturers will return with in a stated
period part or all of the purchasers money if he is not completely satisfied with the
product.
5. Trading Stamps:A premium in the form of stamps is given by the sellers to consumers while selling goods.
The number and value of stamp that the buyer receives depends on the values of the
purchase. These stamps are redeemable through premium catalogues at the stamp
redemption centres.
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6. Buy-Back Allowance:
This an allowance following a previous trade deal not offer a certain amount of money for
new purchases based on the quantity of purchases on the first trade deal. It extends the life
of a trade deal and helps to prevent part deal sales decline. It greatly strengthens the
buyers motivation to co-operate on the first deal.
7. Premium:There are various forms of premiums provided by the manufacturer as sales promotional
devices:(a) Coupons are supplied for effecting price reductions.
(b) Factory in pack premium these are popular in the case of Body food and Tin food items,
Spoons, Cups, Measuring, Glass etc. and such other items are packed with the product in
the box itself. Factory in pack premium are particularly goods for product meant for
children. The Bianca Toothpaste packs contain animal shape toys. These are very attractive
and qutie popular among the children.
(c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. But when the buyers pays for
it he has to pay only a considerably low price for the premium. This is possible for the
manufacturer purchases the items in bulk at a premium and his cost per unit as is
substantially low.
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1. Communicating Market News :Often this service is reciprocal the manufacturer may acquaint his dealer with the fact
relating to his production and prices while the dealer may familiarize him in return with the
information bearing on charges in the consumer's demand, their like and dislike complaints
and criticism, substitutes etc.
2. Inviting to Sales Conference and Convention:The gestures of regard and respect pave the way for better relation and co-operation.
3. Offering Reasonable Terms of Sale:Of all the forms of encouragement, the monetary incentive evokes immediate response.
Hence every producer must offer the most responsible terms of sale such as longer periods
of credit and higher rates of descants.
4. Supplying suitable packages and useful things.
5. By taking the return back.
6. By furnishing them with sales literature and display materials.
Aggressive Selling
Meaning:Goods are produced for market. Manufacturers have to make efforts to sell all they
produce. When the manufacturers uses various sales efforts to obtain increased sales
volume for his product it is called aggressive selling or offensive selling. The sales efforts
which a manufacturer makes to retain his customers i.e. to protect his already established
market against against his competitors is termed as defensive selling. In contrast to this
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aggressive selling is concerned with the sales efforts made with the express objective of
selling more by expanding the market for the product of the selling firm.
Aggressive Selling and Defensive Selling :Aggressive selling is based on the answer to the question how much does the firm gain (in
term of sales with profit) by using this method defensive selling is based on consideration
as to how much the firm will lose if it does not use this method increase of sales can be
obtained from two sources:-
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5. If the manufacturer has unused production capacity with heavy investment in plant and
equipment he will like to develop the demand for his product rapidly so that demand for his
product is equal to the optimum production capacity of his plant ; and
6. When primary demand for a product must be created and provision must be made in the
channel of distribution to educate consumers regarding the new product and to instruct
them in its use.
Method of Aggressive Selling:Sales promotion efforts use for aggressive selling may be divided in two classes.
1. Trade Promotion.
2. Consumer Promotion.
1. Trade Promotion:Under trade promotion methods special incentives are offered to the trader to buy products
of the firm. Such incentive may take one or more of the following firm :(a) Cash Allowance:A definite percentage of discounts is allowed on the purchase of given unit of a product.
(b) Extra Product:Instead of giving any cash allowance extra product is given with each unit of product
ordered. For instance if a box normally contains 20 Cakes of Soap, special box contains 25
cakes may be made and sold at the same price as that of the box of 20 cakes.
(c) Gifts :23
(a) Coupons:A coupon of a giving value is sent to the consumer. By presenting this coupon to the
retailer consumers can purchase a particular product mentioned on the coupon at a reduced
price. The retailer sells the products mentioned. In the coupon to such consumer
(consumers presenting the coupons) under and agreement with the manufacturer at a price
lower than the user retail price. Thus the consumer get the benefit of reduced price to the
extent of the value of the coupons.
(b) Self Liquidating Offers:Under this system, the firm offers an article at an attracting price if the consumer send a
given sum of money accompanied by a given number of box tops from the packages of a
particular product the benefit to the consumer is that he receives the articles at a bargain
price.
(c) Bargain Packs:Under this system a product is sold at a reduced price for a short period Bargain pack
method encourages new consumers to try the product. It is also helpful in obtaining large
displays in the shops.
(d) Sampling :-
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The method involves giving the product or a small quantity of the product to a consumer
free with the hope that the customer will be favourable impressed with its actual use and
will eventually become a regular purchaser of the product.
A firm selling new product or an extensively improved product finds this methods useful.
Also a firm whose market is hold by competitors whose free sampling almost expensive.
The above mentioned methods may be reinforced by adopting.
(i)
(ii)
(iii)
(ii)
Instead of using wholesalers, the firm may develop its own sales force to call
directly on retailers.
(iii)
(iv)
(v)
(vi)
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In fact, an ingenious sales manager can devise any number of incentives schemes for
promoting the sales volume.
OBJECT OF STUDY
1
2.
Property Valuation
3.
4.
Home Loans
5.
6.
7.
8.
Sales Promotion
9.
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RESEARCH METHODOLOGY
Any activity done without an objective in a mind cannot turn faithful. An objective
provides a specific direction to an activity. Objectives may range from very general to very
specify , but the should be clear enough to point out with responsible accuracy what
researcher wants to achieve through the study and how it will be helpful to the decision
maker in solving the problem.
Each research study has its own specific purpose. It is like to discover to question through
the application of scientific procedure. But the main aim of our research to find out the
truth that is hidden and which has not been discovered as yet.
is especially important in the behavioral science where the aim is to discover the underline
motives of human behavior. Though suc research we can analyses various factors which
motivate to people to behave in particular manner or which make people like or dislike a
particular thing.
Quantitative Research: - Quantitative research is based on the measurement of quantity or
amount. It is applicable to phenomena that cab be expressed in terms of Quantity. So we
can use it in our research for collection of all the numerical data.
2).SAMPLING DESIGN:Sample Design is a definite plan for obtaining a sample from a given population. It refers
to the technique or the procedure the researcher would adopt in selecting items for the
sample
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 by2020. India is also considered the second most attractive country in
29
theworld 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.
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.
30
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. Indias 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, petro
chemicals,
Infrastructure (civil aviation, roads, and ports), electronics ,beverages and tobacco
products have been the prime drivers in Indias Industrial growth.
The size of the Indian real estate market is estimated at USD 12billion 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.
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
32
concentrated in places like Bangalore and the National Capital Region of Delhi (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.
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34
35
36
and services near Coimbatore in Tamil Nadu, Udupi in Karnataka and Vadodara in
Gujarat), Hindalco ( aluminum SEZ at Sambalpur in Orissa), Genpact (IT SEZ at
Bhubaneshwar in Orissa, Jaipur in Rajasthan and Bhopal in Madhya Pradesh), Vedanta
Alumina ( aluminum SEZ at Orissa). Seeking the permission for SEZs are also a number of
real estate developers, including DLF, Ansals, Omaxe, Parsvnath, Shipra Estate and Sunny
Vista Realtors
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 house holds earning more than INR 500,000 (about US$12,000) should more than
double to 7.6m in 2006-10.
37
Commercial:
Rapid growth in IT/ITES services (manpower in the sector has doubled in the past three
years To 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 in India 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, the reby driving the demand for mall space.
Hospitality:
According to CRISIL, the number of 5-star rooms is expected to grow by60% in the next
four years with foreign tourist arrivals growing at 10%CAGR
Change in legislation:
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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 developer sare scaling up geographically, which
necessitates rigorous systems and processes
39
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.
Even Indias 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 Mumbais 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 demand at
Haware Builders commercial projects in Navi Mumbai, he reveals.
Today, industrial units in Navi Mumbai are relocating to locations in Raigadh district
and commercial is the latest buzzword in Navi Mumbais 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
competitive prices vis--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 Mumbais 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.
40
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 Navi
Mumbai provides, 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 Nirman 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.
41
retail bases. Then of course, the government permitting foreign direct investment
(FDI) up to51% 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
Agency
Agency is that branch of the real estate business which engages the attention of the
greatest number of persons who are concerned with the business, and in that respect it is of
prime importance. It is divided into two parts, brokerage and management.
A broker is a person who for compensation, usually proportioned to the value of the
subject-matter, brings about transactions between principals. Brokerage has two divisions
according to the kinds of business which usually engage the attention of the broker. The
sales broker is a broker who devotes his time and attention to the bringing about of the sale
or exchange of real property. A loan broker is one who gives his attention to the obtaining
of loans upon the security of real property. One man may practice both branches of the
business, or a specialist may devote himself to either of these branches.
Management, the second branch of agency, is the operation of deriving income and
caring physically for real estate structures. It concerns itself not only with the deriving of
income, but with the keeping down of expenses and the care in making expenditures. It is
popularly known as "Agency."
42
VISION
Benchmarking our services in terms of People, Pace & Passion to be the best in the
Industry.
MISSION
To
provide
requirements
reach
its
creative
of
our
optimal
solutions,
clients.
potential
by
To
customizing
encourage
combining
its
&
our
services
facilitate
diverse
to
our
strengths
suit
the
team
to
to
provide
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.
Projects HandledLittle World Mall:
They had sole mandate to lease the mall which started in October2007in Kharghar.
Complete project was completed by them with good anchors and brands as listed below:
Aditya Birla more, Archies, Levis, Levis Signature, Max Life style, Adlabs, The
Raymond Shop, Reid & Taylor, Welspun, Thomas Scott ,Connections, Koutons,Planet M,
43
The Mobile Store, Homes & Apparels, Lilliput, Carmicheal House, Kittens, Thomas Scott,
Gini & Jony, LaDiamond, Nice Looks, Dosa Plaza, China Land, Chopking, IndianTadka,
Moti Mahal, Caf Energise, Caf 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 Cooper, Ruff Kids, L effect, Live In,
Lovable, Dominoes , Nice Looks, Top Corn, Caf Coffee Day, Ameoba Game Zone, Stone
age Restaurant.
Bank Finance:
44
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 thecountry
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
45
Residential
Office
Commercial
IT Park
Hospitals
Multiplex es
Indus trial
Institutional.
Advisory Services:
Investment Advisory Services
Third Party Due Diligence & Service Management
Feasibility Analysis
Lease & Utility Audits
Relocation Studies
Property Valuation & Tax Consulting
Site Selection Modeling Analysis & Strategic Planning
Merger and Acquisitions
Joint Venture, Collaborations, Franchise
Foreign Direct Investment (FDI)
46
Allied Services:
Valuation and Land Appraisal
Tenant / Purchaser Representation
Research & Feasibility Studies
Project Management
Bank Finance: Preparing project and feasibility report, Bank
Turnkey Financing Solutions
a)
b)
c)
47
Clear Title
90% of the lands in India do not have clear title. The ownership is unclear, thereby creating
a scarcity of land. This is due to poor recordkeeping and outdated complaint processes. All
updated records must be computerized to increase transparency in land ownership. And
special fast track courts must be set up to clear all legal land disputes in a short period of
time.
50
Findings
As the GDP increases the real estate prices also increases because there is a high degree
of positive correlation between the real estateprices and GDP.
Real estate prices also increases with increase in the per captaincies 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 in2008 it is 25%.
The interest rate also affects the real estate prices because it affects the lending and
borrowing 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
52
The outsourcing and IT/ITES industry have contributed to the demand for quality officespace. The estimated demand from IT/ITES sector alone is expected to be 150mm sq. ft. of
space across the major cities by 2010.
Suggestions
The following recommendations are made this paper Due to high prices the lower income group is not able to purchase the shops, so company
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
management of the real estate can be made possible.
Commonwealth is scheduled for 2010. Hotels, sport stadiums another infrastructure 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 encouragement 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 increasing day by day like in Delhi deconstruction of buildings. Thus
Careful measures and laws should be enacted to deal with these types of situations.
53
CONCLUSIONS
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
returns from the Real-Estate. India needs a stronger capital market base for property
financing. The debate on the potential introduction of REITs and real-estate funds points in
the right direction. The introduction of REIT s in2007, will give international investors in
particular a familiar investment vehicle. Private investors could also enter into indirect
investment in real-estate. Although interest in new projects is most likely to come primarily
from institutional investors, the rising middle class is likely to seek new instruments aside
from direct property investments in the medium terms, in the end we can say that the
investment in Real Estate in India is aviary good investment opportunity. But one should be
very careful while taking decision in this direction due to rising inflation and interest rates.
Legal issues should also be kept in mind while choosing a property.
54
55
Response Variance Across Sample Characteristics. The sample was tested to see whether
the responses to the practice questions varied significantly relative to a number of control
factors. The factors tested were: Real estate portfolio size CRE team size CRE&FM
operating budget size Professional membership (73% of the sample are industry association
Core Net Global members) CRE organization structure Industry sector Enterprise annual
revenue Total number of enterprise employees No significant differences across responses were found
based upon these factors. The only difference in means that was greater than 1 (i.e. one point
difference in average response on the 1-7 scale) was the difference between the lowest and highest
industry sectors. Regus Global Report Corporate Real Estate Impact on Enterprise Success
April 2011 Findings: Fundamental CREM management Practices The study collected
information regarding four fundamental corporate real estate practices: organizational
structure, budget control, CRE reporting and use of suppliers. Responses were limited to
four choices. The responses are informative on their own, and were also compared to
the practices maturity scales to see if any of these fundamental characteristics correlated
with the survey results, as discussed above. There is very little information published
documenting the relative distribution of these practices, and the results shed light on some frequent
debates. Further, one question solicited the opinion of the survey respondent regarding senior managements
view of CRE .Given the increase in tele work (where employees are allowed to work from
home or another location) and implementation of alternative workplace strategies (AWS),
the survey also enquired into current telework and AWS practices, and asked respondents
to predict future policies and practices regarding alternative work and sustainability at their
company. Fundamental CRE Practices Among the four generic approaches to CRE
organizational structure presented in the survey, a hybrid of functional and geographic
operations was most commonly cited, possibly due to the global scope of many of the
participating companies. The rest evenly balanced between either functional or geographic
driven organizational structures, as shown in Figure 2. None of the participating companies
managed corporate real estate at the business unit level. Figure 3 summarizes the budgetary
control and real estate cost charge-back policies at the companies surveyed. The
most common practice is to budget and manage CRE costs centrally and then recharge all
costs back to business units. There is a fairly even spread across the other three methods.
In the majority of the organizations (78%) the central CRE function has control of the
overall CRE budget and through this
56
should be able to strongly influence and drive improved practice and policies consistently
across the entire portfolio. Figure 2: Basis for CRE Organization Structure Figure 3:
Budgetary Control and Recharging Practices. The distribution of where the CRE function
reports into the overall corporate management reporting line is also quite diverse across the
sample, as Figure 4demonstrates. The survey respondents most frequently report to the
Chief Financial Officer, followed by both the Chief Operating Officer and the Technology function.
Corporate Real Estate Impact on Enterprise Success The survey collected information
about the level of activity where suppliers are used. The results are shown in Figure 5.
Given that the survey was targeted at the largest corporate occupiers who would potentially
be best positioned to benefit from integrated services across the globe, it may be surprising
that 38% of the respondents only use suppliers tactically at a local or national/regional
level. At the other end of the spectrum, an equal proportion of respondents engage
suppliers
on an
an
international
level based
around
limited
number
of
principal relationships responsible for integrated solutions across a wide range of functions
and/or countries. This points to a considerable growth potential for the major international
service providers, as over 60% of those surveyed arent currently using integrated solutions
on an international b
FINDINGS /RECOMMENDATION
Referrals
It has been estimated that in North America, referrals and word-of-mouth recommendations
generate 85% of new business.
In effect, a referral or recommendation, is third party confirmation that the business,i.e.
the agentis competent and trustworthy. The challenge for agents is to increase the number
of people who believe that they are sufficiently competent and trustworthy to recommend
them to other people. This reputation for competence and trustworthiness doesnt just
happenit has to be earned.
Advertising
Advertising properties listed for sale represent implied endorsements of agents
competence and trustworthiness. After all, the owners of the properties advertised for sale
must have believed the agents to be competent and trustworthy; otherwise they would not
have hired them to help sell their properties.
Open Houses
Open houses allow real estate agents to showcase their technical expertise and personal
characteristics. By interacting with agents at open houses, prospective clients can assess
individual agents competence and trustworthiness and by extension, how the agent can
help them. For prospective clients, its like test driving a new car.
Networking
Networking is the most multi-faceted, versatile and effective marketing tool available to
real estate agents. Among other things, it allows them to exchange information and
showcase their trustworthiness. Above all, it also makes it possible to interact with other
people, who ideally will like and trust an individual agent well enough to do business with,
and refer others to him or her.
58
Prospecting
The best way to develop a client base is by well focused prospecting.
Prospecting is an essential marketing strategy. It generates new leads that can be converted
into clients. It also provides the inflow of new clients. These clients will ultimately become
part of the pipeline by contributing repeat and referral business.
A Benefit For All Agents
All real estate agents can benefit from applying the best marketing practices of high
producing agents. Specifically, this means that the key marketing strategies of high
producing agents will help you attract clients.
59
LIMITATIONS
#
The Sample for research was chosen only from a limited area.
Complete data was not available due to company privacy and secrecy
60
India has enormous potential in all its property investment categories. Strong population
growth, a large pool of qualified workers, greater integration with the world economy and
increasing domestic and foreign investment are fuelling demand for office, retail and
residential property. Although not discussed in depth in this paper, this demand growth can
also be applied to many special property classes, such as hotels or second homes. Going
forward, it will be a matter of exploiting this potential. For the real estate industry, three
aspects are most particularly important. First, further opening to foreign investment is
desirable. Not only do international investors have the means to finance new construction
projects, but also possess the expertise in market analysis, facility anagement and building
construction. In the medium term these will act as catalysts to bring greater transparency to
the market. Second, India needs a stronger capital market base for property financing. The
debate on the potential introduction of REITs and real estate funds points in the right
direction. The introduction of REITs in 2007 will give international investors in particular a
familiar investment vehicle. Private investors could also enter into indirect investment in
real estate. Although interest in new products 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. Third, the government needs to step up
developing the urban infrastructure. In recognition of this, Indias finance minister Shri P.
Chidambaram presented an extensive urban investment package during his budget speech
for fiscal year 2005/2006: If our cities are not renewed, they will die.40 In December
2005 the Jawaharal Nehru National Urban Renewal Mission estimated that the selected 63
cities will require annual investments of USD 4 bn. Roughly half of this is for the seven
biggest cities. In his latest budget speech on February 28, 2006 the finance minister also
announced that the government wishes actively to promote the establishment of new
towns.41 Channelling the process of urbanisation into new agglomerations is a plausible
step, given the growth scenarios for the metro cities. But it requires additional funding and
is likely, at best, to make an impact on real estate markets in the medium term.
61
2. Total 25 towers A,J,N,V, towers are 4BHK & another tower are 2&3BHK.
6. From this project Botanical Garden, Metro Station-37, Metro Station -18 & GIP
mall only 5min.Drives.
62
TYPES
Type-1
Type-2
Type-3
Type-4
Type-5
Type-6
BHK
2BHK + 2 toilet
3BHK+ 2toilet
3BHK+ 3toilet
3BHK+ 3toilet+Servent Room
4BHK+ 4toilet+Servent Room
4BHK+ 4toilet+Servent Room
PREFFERED LOCATION CHARGE (PLC);1. First Floor 2. Second Floor 3. Third floor 4. Fourth Floor 5. Fifth Floor -
200/sq.ft.
175/ sq.ft.
150/ sq.ft.
125/ sq.ft.
100/ sq.ft.
63
AREA
1140/sqft
1390/sqft
1640/sqft
1850/sqft
2465/sqft
3075/sqft
=
=
6100/sqft
5900/sqft
OTHER CHARGES
1.
4,00,000 Rs
2. Lease Rent
150/sqft
3. Power backup
15,000/kv
40/sqft
40/sqft
6. Club Membership
1,00,000 Rs
7. Maintenance Deposit
20/sqft
SPECIFICATION :-
1. Floor
2. Wall -
Verified Tiles
Texture painting in Living room & Master Bedroom
3. Kitchen-
4. Toilet -
5. Master Bedroom
Wooden flooring
6. Ceiling -
P.O.P.
65
QUESTIONARIES
Town
Mountain Area
F. I will consider:
only single family homes
villa and penth house
both of the above
G. YES, I must sell my present home before considering the purchase of another
home.
I would estimate its selling price at approximately: in Rs.
200,000-250,000
251,000-350,000
351,000-500,000
501,000-750,000
751,000-1,000,000
1,000,000-1,500,000
Over 2,500,0000
I do NOT need to sell my present home before purchase.
H. I need a new home:
Immediately
In 90 days
In 6 months
Within a Year
67
BIBLOGRAPHY
Different Journals.
Indian Real Estate marketing ( Anil kumar saini )
www.google.com
www.wikipedia.com
68