Real Estate

A PROJECT REPORT ON “THE ATTITUDINAL STUDY OF BUYERS TO ANALYSE THE REASONS FOR TRANSITION FROM DELHI TO NCR ”

Submitted to: Mr. NITIN GARG Submitted By: AKHIL KUMAR A1802006 C03

AMITY INTERNATIONAL BUSINESS SCHOOL AMITY UNIVERSITY

ACKNOWLEDGEMENT

I am extremely thankful to Mr Aditya Gupta for her kind guidance and support. It has been a wonderful learning experience for which i feel indebted to him and keenly look forward to such a value adding opportunity again.He provided immense support,encouragement and confidence during the course of the project thereby making my summer training a lifetime experience.

(AKHIL KUMAR) A1802006 C03

Table Of Contents Contents Acknowledgements Table of Contents Executive Summary 1. Introduction 1.1 Sample Method 1.2 Sample Size 1.3 Data Collection Method 1.4 Problems Encountered 1.5 Factors and Parameters 2.Data Analysis 2.1 Factor Analysis 2.2 Tables and Charts 2.2.1 Gurgaon 2.2.2 Noida 2.2.3 Ghaziabad 2.3 Developers 2.3.1 Buildings Surveyed 2.3.2 Other Building Surveyed 2.3.3 Analysis of Data Collected 3. Recommendations 4. Conclusion

5. Bibliography Annexure 1 Annexure 2 Annexure 3

EXECUTIVE SUMMARY

INTRODUCTION Earlier people used to search for a new home within Delhi but now things have changed tremendously. People looking for a new home have started focusing on the upcoming NCR area comprising Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad. There are numerous factors responsible for this change, which have been identified and analyzed during the research and the same has been indicated later in the report.

OBJECTIVES To find out the reasons for transition of people from Delhi to National Capital Region (NCR). To find out the perception of people about the cities included in NCR namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad. To know the degree of importance of various factors which people consider while purchasing a house.

STEPS Understanding the objectives and requirements of the project clearly. Prepared a questionnaire keeping in mind the objectives to be achieved. Accordingly three questionnaires were made: Housing (See Archive 1) Society

(See Archive 2)

Builders (See Archive 3) Searched for busy commercial places, occupied housing complexes and under-construction housing complexes located in Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad. Obtained Permission to conduct surveys in shopping malls and housing complexes. Conducted survey with the help of a questionnaire in shopping malls and occupied housing complexes and carried out in depth interviews of the sales manager of under construction housing complexes in different cities of

NCR

Analyzed the data collected, through tables and charts in MS Excel. Drafted the report.

LIMITATIONS Study was restricted to Gurgaon, Noida, Greater Noida, Vaishali and Indirapuram. Study was restricted to occupied housing complexes, shopping malls and under-construction housing complexes.

INTRODUCTION Delhi is now more or less saturated and the high demand for residential properties has increased rates beyond the reach of middle class. As a result, the suburban towns within the NCR; Gurgaon, Noida, Faridabad and Ghaziabad have become destinations for new residential projects that offer affordable quality housing to the middle class as well as luxury housing for high end users. As these suburbs

are now increasingly generating employment, they will decide the future growth pattern of the NCR. The business and trader class still largely dominate old residential areas in west and northwest Delhi. Similarly the large multi-storey societies in East Delhi – in mayur vihar and Patparganj – have found preference with the service class. The blue-collar segment remains limited to apartments and society developments while big and small traders occupy the whole of west Delhi, including Rohini. The elite class, in terms of social status, i.e. politicians, bureaucrats and celebrities, restrict themselves to central and south Delhi. Suburban areas like Noida and Gurgaon have developed as alternative housing solutions and are inhabited mostly by professional and service class people, as well as an increasing upper middle class segment. Gurgaon offers a good quality of living with many high-end residential projects

by

private

developers.

These

new

developments

offer

uninterrupted power supply, community and health care centers along with facilities like a swimming pool, clubhouse and other services. As per industry estimates, projects with approximately 5000 dwelling units have been announced in Gurgaon. Since it will be maturing as an independent city, occupancies will improve but in the present context, it is an oversupply situation. Noida has experienced rising prices in its existing commercial, retail and residential real estate. The new developing residential sectors are along the Greater Noida expressway. Occupancies in Noida are good and prices are looking northward. It is a good destination for the

middle class, as far as accessibility, social and physical infrastructure and growth perspective are concerned.

Sampling Method – Stratified method of sampling was used for face-to-face survey while snowball sampling method was used while conducting telephonic survey.

Sample Size People living in Gurgaon Housing and Society Complexes, in Noida housing

complexes

and

in

Ghaziabad

(Indirapuram)

Housing

complexes were surveyed. Total Number of people surveyed was: Gurgaon Housing Complex Gurgaon Society Complex

---------

200 40

Noida Housing Complex

-----

56

Ghaziabad Housing Complex

-----

150 -----446 -----

Sales Manager of 25 under-construction Housing Complexes were also surveyed to know the degree of importance of various factors that people consider while purchasing property, from developer’s viewpoint.

Data Collection Method Data was collected by using primary as well as secondary methods of data collection. Primary Method 1) Face to Face interview 2) Questionnaires 3) Telephonic Survey 4) Survey through E-Mail 5) Survey through Reference Secondary Method 1) Magazines on Property 2) Internet sites on Property 3) Internet websites of popular property developers of India

PROBLEMS ENCOUNTERED Denial of permission to conduct survey in PVR shopping mall and few housin complexes like DLF Belvedere Park, Ansals Sushant Lok, etc. Travelling to far-off places from Delhi everyday. Analyzing the perception of people about different cities of NCR was little difficult as some respondents didn’t have much knowledge about Ghaziabad and Faridabad.

Factors and Parameters Chosen for Survey

The questionnaire was prepared in such a way so as to achieve all the three objectives mentioned above. In order to attain the objectives five major questions were included in the questionnaire along with few general questions. •

In order to achieve the first objective of finding out the reasons responsible for transition from Delhi to NCR two questions were included. One to find out the first pull that attracts the people most

while

buying

the

property

(See

Q1

of

Housing

Questionnaire given in Annexure 1). And the second question helps in finding out other major reasons for purchasing the property (See Q6 of Housing Questionnaire given in Annexure 1) Factors were 1.Brand name – Brand name is something that immediately comes into your mind when you think of any product. Even in case of purchase of property, brand name plays a major role. Many people to prefer buy the property developed by well-known and reliable developers. Moreover properties developed by established developers help buyers in getting the best returns, as these properties can be sold any time at a premium. 2.Advertisements – Its an old belief that advertisement can sell literally anything. In order to ascertain whether its true for property or not, it was also included as a first pull factor in the questionnaire.

3.Location – This deals with property and connectivity to road links, airports, railway stations and bus stops. The more approachable the property is to the public transport terminal, the more value it holds. Proximity to the Central Business District also plays an important role in this aspect. 4. Affordability – Budget plays an important role in short listing the options available in the market. Its only when the budget is decided, one starts looking for the available options in the price range decided.

Some other factors were: 1. Need for More Space 2. Need for Better facilities 3. Need for Healthy environment 4. Want for Quality Construction 5. Lack of facilities in previous residence 6. Proximity to Workplace 7. Job transfer

•

In order to achieve the second objective of knowing the perception of people about cities included in NCR a question related to it was included in the questionnaire (See Q13 of Housing Questionnaire given in annexure 1).

Parameters were 1.Location - This parameter includes all the locational factors such as proximity to central business district, to schools, to hospitals, existence of huge shopping malls, etc. 2.Business Hub – This parameters helps in analyzing the perception that people have about the job opportunities and business prospects available in different cities included in NCR. 3.Quality of Living – This parameter helps in analyzing what people think about the style of living prevalent in the 5 cities included in NCR. 4.Law and Order – This parameter helps in analyzing what people about the safety and security situation prevalent in the 5 cities chosen for the survey. 5.Infrastructual Development – This parameter helps in analyzing how respondents rate 5 different cities chosen for the survey, on the basis of conditions of road and highways, availability of public transport, etc. •

In order to achieve the third objective of knowing the degree of importance of various factors, which people consider while purchasing the property, two questions were included in the questionnaire. One to find the degree of importance of external factors (See Q2 of Housing Questionnaire given in annexure 1) and another to find the degree of importance of in-locality factors (See Q3 of Housing questionnaire given in annexure 1).

Factors were External Factors 1.Price Range 2.Connectivity to Public transport 3. Proximity to workplace 4. Availability of loan 5. Easy Payment Plans 6. Rate of Interest 7. Resale Value 8. Clear title of property 9. Proximity to School 10. Proximity to Hospitals 11. Proximity to Entertainment Centers In Locality Factors 1.Peaceful Locality 2.Pollution Free environment 3.Population/occupancy 4.Quality of Construction 5.Maintenance 6.Suitability of Home Type 7.Utilization of space 8.Water Availability 9.Power Backup 10.Safety-Security 11.Recreational facilities/Sports Complex 12.Car Parking facility 13.Club Membership

REAL ESTATE MARKET Construction sector has been the focus sector for some time as its impact

on

employment

the

economy

generator.

is

The

big real

by

virtue

estate

of

its

market

is

being

a

huge

booming.

Its

growing at around 12% per annum.

•

Today its boom time in the real estate market and homebuyers

couldn’t have asked for a better opportunity to buy a home. Indian developers are now not talking of anything less than world class. Infrastructure and economic development of some cities as well as the housing shortages are driving the boom. There is a fundamental change in the approach of the buyer, developer and the government. They all are seeking quality development. The middle class demands the best that money can buy. With the competition in the market, developers have to deliver the best within specified time frames and the government, discharged from the duty of construction has to keep everyone’s interest at heart. The Major reasons for boom in the real estate market are: Easy Availability of Loan and Lower Interest Rate

•

There is easy access to loans. The housing finance has posted a

growth of 29 percent in the last fiscal, touching 53,685 crores. Further, interest rates on housing loans have come down and are

much lower, between seven to eight percent as compared to 1314 percent five years ago. Affordability

•

Another major reason for boom is that housing in India has

become more affordable in recent times. A decade ago, a house cost nearly 15-20 times an individual’s annual salary. Today the cost of a house has come down to just about three to four times an individual’s annual pay package. Increase in number of nuclear families

•

In the past, owing a home was a dream realized only after

retirement. Largely because people looked at it as a means of providing for their children, having themselves lived in a joint family setup. Joint families are progressively getting included in the pages of history book even

in a country like ours. Not

surprisingly the rise in the number of nuclear families is pushing demand for housing further to cater to a generation that is not averse to taking risks. Nor are they hesitant when it comes to paying a price to realize their dreams Investment Option

•

Competitive offers by home loan companies combined with

good quality projects developed by reputed builders having a number of amenities have made investing in properties

very

attractive Wherever there is growth and opportunity, investors

are bound to be around and traditionally real estate has been a safe investment option. Property is looked upon by many as an investment option that appreciates substantially when compared to other traditional tools of investment. Migration Of Industries

•

Another major reason for boom in the real market is the

migration of industries to smaller towns leading to rural progress. With villages turning into towns and towns becoming metros, the property market is growing steadily. This revolution has directly resulted in greater demand for not just housing but also for the overall real estate market with heightened demand for better infrastructure,

transportation

facilities,

entertainment

shopping malls, multiplexes and more.

DATA ANALYSIS

zones,

In order to attain the objective of knowing the degree of importance of various factors which people consider while purchasing the property, two questionnaires were included in the questionnaire. From each questionnaire the responses to these questions were recorded in the computer and analyzed.

•

While in order to know about the perception of people about

different cities and also to know the major reasons for buying the property three questions were included in the questionnaire. Responses to these questions were recorded in MS excel and were analyzed through tables and Charts in MS word.

•

The following pages of the report contain Factor Analysis as well

as Charts.

FACTOR ANALYSIS

External Factors OUTPUT 1. Locational factors Descriptive Statistics Mean

Std. Analysis

PRICE CONNEC

4.20 2.61

Deviation .88 1.25

N 406 406

TV WORKPL

3.37

1.36

406

AC LOAN PAYPLAN INTERES

3.29 3.17 3.08

1.40 1.33 1.36

406 406 406

T RESALE CLRTITL

2.98 4.25

1.60 1.34

406 406

E PROXSC

2.91

1.44

406

HL HOSPT ENTRTN

2.77 2.57

1.22 1.19

406 406

M

CONCLUSION

•

Thus with the help of factor analysis we come to the conclusion

that following External factors are most important.

1.

1.Home Loan Facility – Many people in India still prefer

to buy property by taking home loan. Easy home loan is one of the major reason for the boom in the real estate market. Stiff competition in the home loan segment has brought in a wide range of products to the customers for them to choose from. These days the top property developers themselves help the customers to avail home loan. They provide the customers with necessary details regarding home loan.

2.

2.Price – Price or in other words budget is always an

important factor while purchasing something. And when it comes to the property, price is a major detrimental factor. According to the budget people choose the property. Even the leading developers are well aware of this fact and thus have been building homes for all the classes of people – Independent Villas and luxurious flats for high class and upper-middle class people and Small flats for middle class people.

3.

3.Proximity to workplace – Well no doubt people want

to stay near to their workplace. No one actually likes to spend hours in commuting between the workplace and home. Developers are well aware of this fact too and therefore opening up new projects

only in those places where the industries are existing or are coming up.

4.

4.Resale Value – It has been realized that people while

purchasing the house also considers the resale value of it. No one likes to spend money on something, which will fetch no return after a certain period of time. Property fetches high returns for its owner. It is considered by many as the safest investment tool.

5.

5.Proximity to hospitals – Out of these five major

reasons identified, this reason can be said to be of least importance. But it is also one of the major factors which people consider while purchasing a property.

In-Locality Factors Descriptive Statistics

PEACE POLLUTN POPULTN CONSTRUC MAINTENC HOMETYPE SPACE WATER POWER SAFETY SPORTS CARPARK CLUB

Mean 4.04 3.85 3.05 4.24 4.17 3.84 3.67 4.77 4.28 4.69 3.02 3.89 2.46

Std. Deviation .81 .91 1.10 .78 .90 .91 .91 .53 1.10 .66 1.22 1.14 1.26

Analysis N 406 406 406 406 406 406 406 406 406 406 406 406 406

CONCLUSION Thus with the help of factor analysis it can be concluded that following in-locality factors are important: 1.Quality of Construction – Obviously when one buys a property he makes sure that the quality of construction is good. Everyone while buying a new product wants to buy a quality stuff. Same applies to the property. Every buyer wants to buy a well built house.

2.Pollution Free Environment – The immediate surroundings of the property is always evaluated by the buyer. These days developers give due importance in making the surroundings beautiful with innovative and creative landscaping. They involve landscape architects from different corners of the world to give their customers the best. The NCR is becoming more and more popular among home buyers because of its greenery and pollution-free environment. 3.Water Availability – Water Availability, power backup and safety and security are some very important factors which people do consider while purchasing the property. All these factors are hugely responsible for the transition of people from Delhi to housing complexes in NCR as many colonies of Delhi faces problem of shortage of water and power failure while availability of these essential facilities are ensured in housing complexes by the respective developers.

4.Occupancy - Due to increasing crime this factor is becoming more and more important for the buyers. They don’t want to settle down in such a place where hardly anyone else lives. People prefer to stay in a reasonably well-occupied housing complex. But its also true that people don’t prefer to stay in highly populated areas as it was observed in the case of Shipra Sun City, Ghaziabad where 5000 families living in one single housing complex fight for space and car parking place. 5.Suitability of Home Type – Nowadays due to the wide range of options available people can afford to be choosy. Now they don’t need

to compromise on anything. They don’t buy a property till the time all of the essential things match their requirements. Developers do pay attention to the different requirements of different customers. Some want a flat on the second floor while some want a flat with two bedrooms. All these requirements are tried to be met by the developers. 6.Sport Complex / Recreational Facilities – “All work and no play makes Jack a dull boy”. People have started believing in this concept. Now each parent wants that within the complex his/her kids get all kind of sports to play. Even adults want different recreational facilities to be available in the housing complex, which may help them in eliminating work stress.

TABLES AND CHARTS Three tables and charts have been prepared for each of the three cities namely Gurgaon, Noida and Ghaziabad to analyze what respondents from each of these cities think about five cities included in NCR namely Gurgaon, Noida, Greater Noida, Faridabad and Ghaziabad on the basis of five parameters namely Location, Business Opportunity, Law and Order, Style of Living and Infrastructural Development and also to know the reasons for which they bought the property.

GURGAON Perception of people about the cities of NCR Business Location Opportunity Gurgaon 202 Noida 34 Greater Noida 1 Faridabad 2 Ghaziabad 1

Quality of living 180 36 12 10 2

Law and Order 210 19 8 1 1

Infrastructural Development 184 25 17 1 4

Perception of People About the Cities of NCR 250 200 150

Gurgaon

No. of People

Noida

100

Greater Noida Faridabad

50

Ghaziabad 0 Location

Business opportunity

Quality of living

Parameters

law and order Infrastuctural development

106 63 65 2 5

Findings: 1. Gurgaon buildings stand tall in each and every parameter. Gurgaon tops in all the parameters among Gurgaon respondents. 2. Though in case of Infrastructural Development Greater Noida and Noida are also ranked well by the Gurgaon residents. Probably the credit goes to DND flyover. 3. Location wise, people of Gurgaon feel only Gurgaon and Noida are good in the entire NCR as Greater Noida, Faridabad and Ghaziabad could fetch only 1, 2 and 1 favourable response out of total 240 responses. First Pull to choose the Housing Complex

Brand name

AdvertisementsLocation Affordability 46 10 140 72

Most important factor 17% 27% 4%

Brand name Advertisements Location Affordability

52%

Findings: 1.The basic reason for people buying property in Gurgaon in mass scale is its locational advantage. It shares border with the Capital of India. Moreover huge employment generating BPO companies are located in Gurgaon. Many Reputed schools and colleges have also come up in Gurgaon. Some of India’s biggest shopping malls having shops of international brands as well as famous national brands are also situated here. 2.Second major factor which attracted people to buy property in Gurgaon was affordability. Developers realizing that most of the people shifting to Gurgaon will be from middle class society they constructed big towers with numerous reasonable flats. Since the price of the property kept by the developers suited the pockets of buyers they were able to buy it without any financial problem.

3.Third major factor was brand name. According to 17 % of the total respondents brand name was the prime reason for which they bought the property. In Gurgaon Housing Complexes have been constructed by popular and leading property developers of India like Unitech, DLF, Ansals, Omaxe, Etc. 4.Only 4 % of the total respondents feel that it was advertisements which made them buy the property. Advertisements can actually put the name of the property in the mind of the buyer but no one actually buys the property only on the basis of advertisements. Thus it will be wrong to say that advertisements are useless since they do help in selling though not directly.

Major reasons for shifting

Major Reasons for Shifting Increase in living More space 90

60

84

54

construction

43

38

11

Proximity to Workplace 18

Job transfer 58

Own house 10

Investment 42

Others 11

26

50 40 30 20 10

Reasons

Others

Investment

Own house

Job transfer

Prox. to workplace

Lack of facilities

Quaity construction

Increase in living status

Better Location

0 more space

people

46

facilities 70 Number of people

Reasons No. Of

80 Lack of

Better Facilities Healthy environment status

Healthy environment

people

Better Location

Better Facilities

Reasons No. Of

Quality of

Findings: 1.Among various reasons better location is the most important reason for the people to shift to Gurgaon Housing and Society Complexes. Why location is most important has become apparent till now. 2.Proximity to Workplace and Better Facilities are close second and third most important reasons. Proximity to Workplace may become the most important reason in few years time as industry migration to Gurgaon is happening quickly. All the international brands are preferring Gurgaon over Delhi for their regional office. Moreover people in need of better facilities like water availability, Power Backup, Safety and security, etc also prefer to shift to Gurgaon as Housing complexes of Gurgaon provide all these facilities.

3. Need for more space, Need for Healthy Environment, Need for Own House and Increase in Living Status can be considered as other major factors for people shifting to Gurgaon Housing Complexes. 4.People also purchased property in Gurgaon for investment purpose. This reason may not be seen in such a large number in any other city of NCR. Its so because people consider investment in property in Gurgaon as a very safe bet and expect high return on Investment.

NOIDA

Perception of People about the cities

Business Gurgaon Noida Greater Noida Faridabad Ghaziabad

Location Opportunity 2 54 0 0 0

Quality of living 13 32 2 9 0

Law and Order 22 32 2 0 0

Infrastuctural Development 22 27 7 0 0

Perception of people about the Cities 60 50

Gurgaon

40

Noida

30

Greater Noida

20

Faridabad

10

Ghaziabad

0 Location

Quality of living

infrastuctural Development

Parameters

Findings: 1.In Location, Noida is a clear winner with 54 out of 56 respondents choosing it as the best location in the entire NCR. That is a huge percentage around 96%. This shows that Noida people are happy with its Location. Noida is located close to the Capital of India and is also very closely located to Indirapuram, another upcoming city. 2.In all parameters other than location, Gurgaon has also been ranked as no.1 by many people.

6 9 41 0 0

3.One significant thing in this chart is that Faridabad was selected by many Noida respondents as no.1 in case of business opportunities available. 4.The most significant thing indicated by the chart is that people of Noida

have

chosen

Greater

Noida

as

no.1

in

Infrastructural

Development.41 out of 56 respondents have favourably marked for greater Noida while only 9 have marked for Noida.

First Pull to choose the Housing Complex Brand name

AdvertisementsLocation Affordability 1 0 40 31

Most Important Factor 1% 0%

Brand name Advertisements

43%

Location

56%

Affordability

Findings: 1.In Noida just like in Gurgaon, location is the most important factor that pulls the people to buy a new home. 2.Advertisements have no role in the sale of homes but as said before in the report advertisements do add the advertised property as an option in the mind of the prospective buyer. 3.According to respondents from Noida Brand name of the developer didn’t play a big role in making them buy the property. Its probably because Noida doesn’t have highly popular brands like Ansals, Unitech, Eros, DLF, etc. 4.Affordability is another major reason for the buying the property in Noida. As there is hardly any popular developer in Noida and the homes provided in Noida are not 28 as luxurious as that in Gurgaon, the prices are very low as compared to the prices prevailing in Gurgaon. In Gurgaon Higher class and Upper middle class people also buy homes in large numbers whereas in Noida the number of high class and upper middle class people looking for new home is very less.

Major reasons for shifting Better

Increase in

Quality

Reasons More Space Better Location facilities Healthy environment living status construction No. Of people 31 28 35 11 13 9 Lack of Proximity to Reasons facilities No. Of people

workplace 5

Job transfer Own house 2 0

Investment Others 31 1

3

Others

Investment

Own house

Job transfer

Proximity to workplace

Lack of facilities

Quality construction

Increase in living status

Healthy environment

Better facilities

Better Location

40 35 30 25 20 15 10 5 0 More Space

Number of people

Main Reasons for Shifting

Reasons

Findings: 1.One of the most important thing found out in the survey was that the one of the major reasons to buy the house was the desire of people to have their own house. This reason was not at all important in case of Gurgaon. This goes on to show that houses in Noida are very reasonable. Mostly people earlier living in rent have bought properties in Noida either to avoid high rents prevailing in Delhi or due to the desire of having an own asset. 2.Need for better facilities was tick marked by maximum number of people as a reason for buying the property. This again proves the fact that people buying property in Noida are generally from middle class who earlier used to live in less popular colonies of Delhi which are deprived of essential facilities like water, power and safety. 3.Another major reason for buying the property in Noida is Need for more space. Generally people earlier living in joint families or newly

married couples prefer buying property in Noida as they are affordable. 4. Only 1 out of 56 respondents have said that investment was the main reason to buy the property, which is around 2 % of the total respondents. This goes on to show that people don’t generally buy property in Noida for investment purpose. 5.Another important point to notice is that in Noida proximity to workplace reason is insignificant. Its probably because virtually nonexistence of BPO companies in Noida.

GHAZIABAD Perception of people about the cities of NCR Business Gurgaon Noida Greater Noida Faridabad Ghaziabad

Location Opportunity 20 93 2 1 34

Quality of Living 28 75 6 17 24

Law & order 59 74 9 2 6

Infrastructure 60 40 64 49 12 5 9

48 0 13

Number of People

Perception of People about the Cities 100 Gurgaon

80

Noida

60

Greater Noida

40

Faridabad

20

Ghaziabad

0 Location

business Opportunity

Quality of Living

Law & order

Infrastucture

Parameters

Findings: 1.Respondents from Ghaziabad have chosen Noida as the best location in the entire NCR. As many as 93 out of 150 respondents have marked favourably for Noida which is around 60 % of the total respondents. This clearly goes to show that Ghaziabad respondents have good image of Noida as far as location is concerned. 2.In all other parameters there is a clash between Noida and Gurgaon but Noida seems to lead in every parameter. 3.In business opportunity Noida have again been favoured while rest four have almost same image in the mind of Ghaziabad respondents. 4.In case of quality of living both Noida and Gurgaon have been marked by many as

number 1. Style of living in other three places do

not have enjoy good reputation in the mind of the Ghaziabad respondents. 5.In case of law and order Ghaziabad and Faridabad are clear losers. This fact has been observed in all the three cities. 6.In Infrastructure Greater Noida enjoys good reputation. First Pull to choose the Housing Complex Brand Name

AdvertisementsLocation Affordability 14 11 85 92

Most Important Factor 7%

5%

Brand Name 46%

Advertisements Location Affordablty 42%

Findings:

1.In Ghaziabad affordability is the main reason for the people buying property out there. The occupied Housing complexes of Ghaziabad are pretty old and very reasonable. Developments in Ghaziabad started much before it started in Gurgaon and Noida. So at that time prices were low. Now with the massive development of Noida, Gurgaon as well as of Indirapuram price of property have increased like anything. 2.Location is the second most important factor which makes people buy property in Ghaziabad. Ghaziabad is located close to Noida as well as Delhi. Moreover

Indirapuram, the real upcoming area is its neighbour.

Moreover Ghaziabad’s development took place years ago so it already has lots of facilities available. 3.Advertisements and brand name did compel few to buy the property in Ghaziabad but still they were not so important factors.

Major reasons for shifting Better Reasons No. of

More Space Location

People Lack of Reasons No. of People

facilities

Better

Healthy

Increase in

Quality

facilities

environment

living status

construction

49 71 Proximity to workplace 9

37

Job transfer 12

Own house 5

9 Investment 54

11

2

Others 1

20

Major Reasons for Shifting 80

Number of People

70 60 50 40 30 20 10 Others

Investment

Own house

Job transfer

proximity to workplace

Lack of facilities

Quality construction

Increase in living status

Healthy environment

Better facilities

Better Location

More Space

0

Reasons

Findings: 1.Though Ghaziabad respondents have rated Affordability as the major reason for buying the property in Ghaziabad but if we exclude affordability as a factor we find

that location too was a very important

factor as we can see in this chart. 71 out of 150 Respondents have marked location as a reason for buying the property i.e. around 50 % of the total respondents. 2. Just like in Noida, the desire to have an own house is a major reason to buy a property, in Ghaziabad too. This proves the reliability of the previous chart which shows that the major reason to buy a property in Ghaziabad is affordability.

3. Third most important reason for buying property in Ghaziabad is requirement of more space. 4. Same as Noida reasons like proximity to workplace and investment are almost insignificant.

Developers Buildings surveyed Building:

(Sample Size: 25)

Parsvnath Estate (Greater

Noida) Project Completion: Estimated Date of Possession:

Ready

Total No. of Flats –

264

Sold Out

264

Vacant Price Range feet

100 %

0 1400 per Square

User:

100 %

USP:

Location and Amenities provided

Building: Parsvnath Green Ville (Sohna rd, Gurgaon) Project Completion: 85 % Estimated date of possession: Dec’ 07 Total No. of flats – 500 Sold out – 99 % Vacant – 1 % Price Range – 50 Lacs to 2 Crores User: 70 % Investor: 30 % USP: Affordability

Building:

Parsvnath

Majestic

(indirapuram) Project Completion: 100 % Estimated date of possession: Ready Total No. of flats : 340 Sold out: 340 Vacant: 0 Price Range: 1500 per square feet User: 95 % Investor: 5 % USP: Location

Building: Parsvnath Prestige (Noida) Project Completion: 90 % Estimated date of possession: June07 Total No. of flats: 472 Sold out: 95 % Vacant: 5 % Price Range: 2000 per square feet User: more than 95 % Investor: less than 5 % USP: Centrally Located Building: Parsvnath Edens (Noida) Project Completion: 75 % Estimated date of possession: March ‘ 07 Total No. of flats: 644 Sold out: 95 % Vacant: 5 % Price Range: 2800-3200 per square feet User: 90 % Investor: 10 % USP: Very Well Located

Building: Parsvnath Platinum (Noida) Project Completion: Low rise – 100 % Tower – 40% Estimated date of possession: Low rise - ready

Tower – By March `07 Total No. of flats: 400 – Low rise 200 - Tower Sold out: Low rise – 100 % Tower90 % Vacant: Tower – 10 % Price Range: 1800 per square feet User: 90 % Investor: 10 % USP: World-class facilities provided Building: Eldeco Mansionz (Gurgaon) Project Completion: 90 % Estimated date of possession: ready Total No. of Villas: 141 Sold out: 134 Vacant: 7 Price Range: 1 Crore User: 100 % USP: Quality of Construction and Design Building: Eros Rosewood City (Gurgaon) Project Completion: 100 % Estimated date of possession: Already Given Total No. of Villas: 240 Sold out: 240 Vacant: 0

Price Range: 30 lacs – 55 lacs User: 100 % USP: Location and Quality of construction

Building: Eros Wembley Estate (Gurgaon) Project Completion: 50 % Estimated date of possessionJun 07 Total No. of flats: 632 flats Sold out: 90 % Vacant: 10 % Price Range: 2300 per Square feet User: 100 % USP: Location and Quality of construction

Other Buildings Surveyed Unitech Nirvana Country (Gurgaon) Unitech ‘The Close” (Gurgaon) Omaxe Nile (Gurgaon) Omaxe NRI City (Greater Noida) Omaxe Forest (Noida) Omaxe Royal Residency (Noida) Jaipuria Sunrise (Indirapuram) Ashiana Greens (Indirapuram) Ashiana Orchids (Greater Noida)

Supertech Estate (Indirapuram) Supertech Avant Grade (Indirapuram) Eldeco Golf View Apartments (Greater Noida) ATS Green Village (Noida) Assotech Windsor Greens (Noida) Assotech Windsor Park (Noida) Vatika City (Gurgaon)

Analysis of Data collected from Developers

Sales managers were asked to rank the above mentioned factors on the scale of 1-10 (where 1 stands for the most important factor and 10 stands for the least important factor). After collecting the data, it was put in the excel sheet and then average for each of the factors was calculated. In the above Bar chart averages have been shown. Factor with the least average is the most important factor according to the developers, that people consider while purchasing the property.

Findings: 1. It is clear from the above bar chart that Location is the most important factor which people consider while purchasing the property. 2. After location, quality of construction and safety are second and third most important factors respectively.

3. Healthy environment, Water availability, Maintenance, Power Backup and club membership fall in the middle category with average ranking ranging between 3.5-7. 4. Car Parking and Sports complex are least important factors and according to developers, people don’t consider them much while choosing a property.

RECOMMENDATION 1.As Unitech enjoys good brand name and have a battalion of brand loyal customers it shall make sure that the maintenance of its occupied housing complexes is taking place in the best possible manner.

2.Due to stiff competition in the market Unitech shall focus on the Quality of homes provided and shall also try its best to meet different kind of requirement of different buyers. 3.Due to the current oversupply situation in the market Unitech shall resist from increasing price of its property. 4.Unitech shall help and lure the prospective buyers by helping them in getting housing loans. It shall collaborate with some popular banks for this purpose. These days even banks are more than willing to provide home loans. 5.Unitech shall provide the right amount of greenery in its housing complexes, as pollution free environment is a very important factor that people consider while purchasing the property. 6.Gurgaon, Noida and Greater Noida are the places where Unitech shall come up with new projects as they have been marked favourably by the all respondents. Respondents do not have good image of Faridabad and Ghaziabad while Indirapuram is yet to prove its worth. 7.Advertisement for selling property in Gurgaon can be “Why drive for 45 minutes to your workplace everyday, take a flat in Gurgaon today.” As proximity to workplace is the major reason for people buying flats in Gurgaon. Whereas for Noida and Greater Noida advertisement can be like “Fed up of paying rent. Now realize your dream of having a house of your own-COME TO NOIDA” as desire of having an own house is the most important reason for the people buying property in Noida.

CONCLUSION 1.The major external factors which people consider while purchasing the property are Price, Availability of loan and Proximity to workplace.

2.The major In-Locality factors which people consider while purchasing the property are Quality of construction, Availability of water and Pollution-free environment 3.Perception of people about different cities of NCR •

Location wise Gurgaon and Noida are adjudged the best by the respondents

•

Business opportunity wise Gurgaon due to the mass presence of BPO company and offices of MNC’s and Noida due to its proximity to Delhi are consider good by the majority of respondents.

•

In Quality of living again Gurgaon and Noida leads the pack but out of the two Gurgaon is better due to the existence of Higher and upper-middle class people in large number.

•

In Law and Order all the places are bad as per the respondents but out of the five Gurgaon is the best.

•

As far as infrastructural development is concerned Greater Noida enjoys good reputation among the respondents of all the three cities.

4.In totality, both Location as well as Affordability together account for more than 95 % of the total responses. 5.In Gurgaon major reasons other than affordability and location, to purchase the property were proximity to workplace and healthy environment.

In Noida and Ghaziabad other major reasons were almost the same -desire to own an own house as well as need for better facilities.

Bibliography •

www.unitechgroup.com

•

www.dlf-group.com

•

www.ansalspropertiesltd.com

•

www.eros-group.com

•

www.eldecogroup.com

•

www.omaxe.com

•

www.parsvnath.com

•

www.ashianahousing.com

•

www.gurgaonproperties.net

•

www.realestatencr.com

•

www.gurgaonrealestate.com

•

www.estatedeveloper.com

•

India Today Buyer’s Guide – November 2006 Edition

Annexure 1

Annexure 2

Annexure 3