A RESEARCH REPORT ON

Real Estate Trends in the current Market

With special reference to: JAYPEE REAL ESTATE

Submitted By: SACHIN KUMAR Roll No ;1013370043 MBA 4TH SEM

Noida Institute of Engineering and Technology Greater Noida(U.P.)

Session -2011-2012

ACKNOWLEDGEMENT
A project is never the sole product of a person whose name has appeared on the cover. Even the best effort may not prove successful without proper guidance. For a good project one needs proper time, energy, efforts, patience, and knowledge. But without any guidance it remains unsuccessful. I have done this project with the best of my ability and hope that it will serve its purpose. First of all I wish to express my indebtness to Mr. V.K. Chhabra (Senior General Manager, Marketing & Sales), JAYPEE for his valuable suggestions and guidance throughout the project. After the completion of this Project I feel myself as a well aware person about the Research Procedure and the complexities that can arose during the process. Also I get an insight of the advertising industry and its effectiveness in promoting sales. Finally, I am also grateful to all those personalities who have helped me directly or indirectly in bringing up this project report.

SACHIN KUMAR MBA 4TH Sem

PREFACE

This report is one of a series based on an analysis undertaken by contraction and infrastructure Group to increase the body of knowledge in India about the significance of real-estate industry in facilitating economic productivity and enhancing National competitiveness. The reports aim to increase the house community's understanding. A project team within construction India has undertaken this work - with the assistance, in some cases, of contract expertise, and the cooperation of all provincial and territorial governments devolvement authority.. in the provision of house and

SACHIN KUMAR

OBJECTIVES

Following are the prime objectives of this study:

To present an overview of the Real Estate Industry. To critically analyze the Future Trends in Real Estate Industry. To critically evaluate the position and prospect of major players in Real Estate Industry. To enquire about the future prospect of Real Estate Industry.

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY 2. AN OVERVIEW OF REAL ESTATE INDUSTRY 3. COMPANY PROFILE 4. RESEARCH METHODOLOGY 5. BUSINESS STRATEGIES OF THE REAL ESTATE INDUSTRY 6. ENVIRONMENTAL ISSUES 7. GOVERNMENT POLICY 8. TAX ASPECTS
9. FUTURE PROSPECTS OF REAL ESTATE INDUSTRY 10. BARRIERS TO REAL ESTATE INDUSTRY

11.DATA ANALYSIS 12.SWOT ANALYSIS 13.RECOMMENDATIONS 14.LIMITATIONS 15.CONCLUSION BIBLIOGRAPHY QUESTIONNAIRE

EXECUTIVE SUMMARY
Real estate is a business, not a profession. Real estate is sometimes inaccurately spoken of as a profession, but it is essentially a business. A profession applies science, art or learning to the use of others, the profit to the professor or person applying it being incidental; whereas a business is engaged in primarily for profit, and the profit is to the one engaging in the business. A profession implies professed attainment in special knowledge. A person may engage in business with or without special knowledge and no one else is concerned with the question whether he has any knowledge of the business, because no one else is affected by the result. If he is successful the rewards are his; if he fails he bears the loss. But let him attempt to practice a profession and, if he be unskillful, others are directly affected, and the fact that his reward is diminished thereby is merely incidental to the fact that others suffer. Ethics of the business. But whether real estate be a business or a profession has no connection at all with the body of ethics governing it. Every business can be conducted upon a plane ethically as high as the ideals of any profession, and the men who have been conspicuously successful in the real estate business have attained success because they have applied to their business the highest ideals of commercial fair dealing. This does not mean that there is any ethical requirement for the seller or the purchaser to give away anything which belongs to him, or for either one to disclose to the other his necessity for selling or his requirements for buying; but the bargain having been made, it is absolutely necessary that it be lived up to by both parties, according to its intent; and, if there be any doubt of the intent

of the bargain as it is expressed in writing, that the spirit of the transaction be carried out rather than that the catch words of a written instrument should govern. Cases are frequent of men who to their own detriment perform the thing which they have promised to do although not legally obligated, and the bigger and more successful the man who makes the promise the more surely will it be carried out. Important obligations are often incurred upon the mere promise of a well-known man to sell an important piece of property at a definite price, although no legal and enforceable obligation exist ; and the promise is always redeemed if it is made by a man who knows the business, and it is redeemed not merely from altruistic motives, but also for purely business reasons. Divisions of the business.The principal divisions of the real estate business are investment, operation and agency. These differ from one another according to the aims of the persons engaging in them and the methods by which those persons expect to make their gains. To conduct either of the first two divisions of the business, investment or operation, actual money capital is required. The most important capital in the agency business is the good will of its customers, and that can be husbanded, increased and made very valuable. Investment is the employment of capital in the acquisition of real estate or interests therein for permanent ownership or actual use of the person acquiring it. Operation is the employment of capital in the acquisition or improvement of real estate or interests therein for commercial operations. Agency is dealing in or with real estate on behalf of others. Investment in real estate is generally made for either of two purposes: (a) To derive an income, (b) To hold for resale in expectancy of an increase in value. Investment for income may be for one of two purposes,
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(1) The derivation of rentalthat is, the direct return for the use of real property for definite periods, or (2) The obtaining of income through others upon money lent on the security of real property.

AN OVERVIEW OF REAL ESTATE INDUSTRY

The Delhi Residential real estate market has maintained its buoyancy in 2004. The growing housing demand of the burgeoning middle and upper middle class supported by the competitive low interest rates continues to fuel the growth of the suburban residential market. This growth is evident in the overall evolution of the residential developments in the suburbs highlighted by the new highland mid end developments in Gurgaon and Noida, such as World Spa,Pinnacle, Belmonte, Uniworld City, The Forest etc. All theses projects boost of high specifications in terms of quality of construction in comparison to the previous projects along with luxurious amenities and facilities. Also most of these projects have witnessed recompilation bookings to the extent of 75 to 80% both by endusesrs and investors. The South Delhi residential market is mirroring a similar market sentiments the suburban region, the only difference being in the profile of the buyer. The demand is mainly led by small time investor group looking to place their funds in relatively liquid assets (as compared to other Real-Estate options) with a steady return on investment. This heightened demanding South Delhi from investors (which include Indian residents as well as NRIinvestor) and end users has lead to a shortage of good quality stock in the prime areas. It is interesting to note that in the last 6-8 months, the supply and demand dynamics in the market have reflected a complete turnaround with demand outstripping the supply. This scenario has resulted into a 25-30%rise of capital values in colonies such as Vasant Vihar, Westend, PanscheelsPak, Defence Colony, Golf Links etc.

Rising trend of foreign investment in integrated townships.

Foreign investment in the integrated township sector is displaying a rising trend after the Government of India, in the first quarter of 2002, allowed up to 100% foreign direct investment (FDI) for the development of integrated townships with a minimum area of 100 acres. Although the policies governing investment in the sector are still largely restrictive in terms of pre-conditions for interested parties, major developers, especially those from South East Asia, have been active in collaborating with local partners to execute large integrated township projects in major cities across the country. The first FDI project in the sector was a 100-acre residential township proposed for development in Delhis suburban business district of Gurgaon. Indian infrastructure and property consultancy firm Feedback Ventures Ltd tied up with Malaysian developers Kontur Bintang and Westport for this project. The total capital outlay is estimated to be USD 160 million. Another Malaysian firm, IJM Berhad, is also involved in two major projects a 2,200-unit apartment project in the southern city of Hyderabad in a joint venture with the Andhra Pradesh Housing Board (APHB) and a 500-acre integrated township in SAS Nagar in Mohali, in North India, for which a memorandum of understanding (MoU) has been signed with the Punjab Urban Development Authority(PUDA). Two more prominent projects are underway in Bangalore and Chennai, involving Singapore-based developers Keppel Land and Lee Kim Tah Holdings respectively. While Keppel Lands Bangalore project is in

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association with private developer Purvankara Projects, Lee Kim Tah Holdings has signed an MoU with the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) for the Chennai project. These five major projects, committed within a span of two years since FDI was allowed in the sector, is testimony to the fact that regional developers are optimistic about the Indian real estate market, particularly the residential segment. However, a marginal relaxation in foreign investment prerequisites is needed to further align Indias real estate market with its regional counterparts.

ECONOMIC OUTLOOK:
The Centre for Monitoring Indian Economy (CMIE) estimates that India's gross domestic product (GDP) will grow significantly by 2003-2004. From July 1, for high-value real estate transactions, Form 37(I) Income Tax clearances are not required. Budget 2002 had provided for the repeal of this provision allowing the government the pre-emptive right to purchase immovable property. This is a progressive step that significantly reduces the three-month waiting period before large-value transactions could be registered. A Rs 50 billion (US$1.02 billion) Urban Reforms Incentive Fund (URIF) has been proposed to motivate agencies at every level to undertake infrastructure reforms. Extra funds have been announced to those States pushing reforms, especially in the context of the Urban Land Ceiling Act. The soft interest rates regime has lowered cost of funds to housing finance institutions, translating into a drop in interest rates. This has triggered off a large take-up of finance by end users.

CURRENT SCENARIO:

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Office markets showed signs of revival towards the end of Q1 2002, post September 11. Outsourcing drove these to India of 'back office operations' of financial institutions and call centres. However, the market saw some uncertainty as a result of tensions on the India-Pakistan border. The subsequent travel warnings issued by some Western governments delayed decision-making. The market is now looking more buoyant, with most corporates perceiving the travel advisories as an over-reaction. In Delhi, rental and capital values continue to be soft and the principle business districts are seeing movement of small corporates from secondary markets to the CBD, focussed on A or B+ grade buildings. The suburban markets of Gurgaon and Noida are driven by larger space requirements of IT-enabled service (ITES) providers, primarily call centres. Major corporate offices are also relocating from the CBD to Gurgaon, primarily driven by quality and size of space offered. Landlords are offering single flexible and divisible floorplates of upto 25,000 sq ft. There is a clear link between shifting corporate destinations and the boost this provides to housing. This is evident in Gurgaon in Delhi where residential take-up has been in tandem with corporate influx. The middle to upper middle class residential market is active across the country. This market is driven by: Tax incentives offered by the government on housing loans. Lack of other attractive investment options such as the stock market or personal savings schemes. Improvement of transport linkages. Good quality products offered at reasonable cost by developers to boost lack-lustre markets

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The last quarter saw fresh leasing activity in Gurgaon with space commitments of approx. 150,000 sq. ft. However, values are expected to continue to be under pressure as new supply of over 65,000 sq. ft. is added. In the next 8-12 months, demand for IT enabled services will be in excess of 1.2-1.4 million sq. ft. Approximately 65% of this demand is likely to be split over 6 cities: Mumbai, Pune, Delhi, Bangalore, Hyderabad and Chennai.

RESIDENTIAL VALUES:
Capital Values Rs/ sq ft. CENTRAL DELHI Prime 6,200-8,500 SOUTH DELHI Prime 4,500-5,500 Secondary 3,500-4,000 WEST DELHI Prime (New 2,300 Rajender Nagar) Secondary 1,200-1,900 EAST DELHI Prime 2,000-2,500 Secondary 1,200-1,500 GREATER NOIDA Land 3,5000- 6,000 Apartments 1,200- 1,500 Location Rental Values Rs/sq. ft./ month 60-75 40-50 35-45 14 7-10 20-25 10-12 -

OFFICE MARKET CURRENT SCENARIO:

Corporate take-up is driving Delhi's office market as well as call centers and other IT-enabled users.

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Tenants are generally seeking fully fitted office space. In the CBD, such space is often vacated by corporates who have relocated to the suburbs. Sometimes landlords fit out space to attract good tenants. Takers of smaller office space such as Infar, Tellabs and Frederic R Harris in the CBD have opted for fully fitted facilities, vacated by previous tenants. In Gurgaon and Noida too, there has been take-up of fully fitted accommodation. Most landlords offer air conditioning and power back up, supported by professional real estate property management. In the CBD, landlords of properties such as Ashoka Estate and Hindustan Times House have improved these buildings, which have enabled them to upgrade tenant profile. The industrial areas of Udyog Vihar, Okhla and Mohan Co-operative too are seeing take-up by IT-enabled services. In the suburbs, developers have land and schemes, which are being marketed to corporates with large buildto-suit requirements. Noida and Gurgaon offer buildings with such larger floor plates which cater to large space users. At present, Noida has better road infrastructure than Gurgaon. However, a six-lane flyover project on the National Highway 8 is scheduled to start soon in Gurgaon. This will improve the road connectivity to Gurgaon from Delhi. Both Noida and Gurgaon have emerged as prime residential locations, which produce an English-speaking workforce capable of servicing call centres, and IT enabled services companies. There are approx 40 call centres operational in Gurgaon and Noida. Call centres typically employ upwards of 100 people at a per-person-per-sq ft ratio of 70. Call center space take-up is therefore typically in excess of 7,000 sq ft upto approx 200,000 sq ft. Large players such as GE Capital, EXL Services,

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Spectramind and Daksh have head counts upwards of 2,500 operating out of multiple locations.

OFFICE VALUES:

Location PRIME Connaught Place A Grade** Connaught Place B Grade** SECONDARY Bhikaji Cama Place# Nehru Place# Okhla Industrial Estate* Okhla Industrial Area* Mohan Cooperative*^ SUBURBAN Gurgaon A Grade Gurgaon B Grade* Noida A Grade Noida B Grade Greater Noida

Capital Values Rs/ sq ft. 7,000-9,000 5,000-6,500 3,000-4,000 3,000-4,000 5,000-7,000 2,000-3,500 N.A. 4,000-5,000 1,200-3,000 4,000-6,000 1,500-2,000 1,400- 3,000

Rental Values Rs/ sq ft./ month 80-100 50-70 30-40 20-30 50-70 20-35 25-60 35-40 15-30 40-60 12-20 -

RETAILCURRENT SCENARIO:
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Rentals are improving due to paucity of space in traditional retail areas of Connaught Place, South Extension, Greater Kailash I & II, Basant Lok, PVR complex and New Friends Colony. Retailers are moving towards the affluent areas of Vikaspuri, Rajouri Garden, Pitampura and Vaishali in Ghaziabad. Approx 2.2 million sq ft of retail space will become available in the Delhi region over the next few years in approximately 15 malls, which are currently under construction. Restaurants are major drivers of Delhis retail sector, in areas such as Basant Lok, Vasant Vihar, South Extension and Defence Colony. RETAIL VALUES:

Location

Capital Values Rs/ sq. ft.

Rental Val ues Rs/ sq. ft./ mont h

Connaught Place Inner Circle Outer Circle South Extension Basant Lok PVR Saket GK-I GK-II New Friends Colony Noida Gurgaon Greater Noida

8,000-9,000 20,000-25,000 12,000-15,000 10,000-12,000 20,000-25,000 8,000-9,000 9,000-10,000 8,000-9,000 5,000-6,000 4,000- 6,000
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120-150 70-100 250-325 110-120 110-125 250-350 80-100 90-110 90-100 50-60 -

RETAIL DLF, MGF, Sahara and Ansals are each developing shopping malls in Gurgaon. Regents Plaza is a shopping mall covering an area of 70,000 sq ft over four or five floors. It is going to be exclusively hosting fashion designers like Giorgio Armani, Versace & Gucci. RESIDENTIAL Feedback Ventures is developing 100acre residential development in Gurgaon DLF has launched Trinity Towers, a 4 BR condominium development in Phase V Gurgaon ATS Infrastructure has launched Phase II of ATS Greens in Sector 50, NOIDA Kamalka Lakelands is a 9-hole golf course real estate project in Gurgaon GESCO has launched Central Park, a 2,3, 4 BR condominium development in Gurgaon Ardee Infrastructure is constructing The Residency, 4-BR, serviced, and uni-bed, low-rise apartments near South City, Gurgaon

COMPARATIVE: PROMOTER NRI CITY PUTTING GREENS AREA 2104 Sq.ft PRICE (basic) 1900/-Per sq.ft 3 Bed room
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LOCATION G.NOIDA

NRI CITY PUTTING GREENS NRI CITY PUTTING GREENS PARSVNATH PLATINUM ATS GREENS VILLAGE

2362 Sq.ft 4244 Sq.ft 1500 Sq.ft

1900/-per G.NOIDA sq.ft 4 Bed room 2100/- per G.NOIDA sq.ft Penthouse G.NOIDA 1700/-Sq.ft NOIDA EXPRESSWAY SEC-93A

1300 Sq.ft 1500 Sq.ft 1750 Sq.ft 2800 Sq.ft STELLAR KINGS 2003.5 Sq.ft COURT 1702 Sq.ft 1507 Sq.ft WESTEND 2700 Sq.ft HEIGHTS 2500 Sq.ft DLF ELDECO SAVANNAH GREEN 1330 Sq.ft MEADOWS GARDENIA 1510 Sq.ft VERDANA 1610 Sq.ft PARSVNATH GREEN VILLE

1650/- Sq.ft 2000/- Sq.ft 2500/- Sq.ft 1595/- Sq.ft 1589/- Sq.ft 1660/- Sq.ft 2000/- Sq.ft GURGAON Ground Floor 1950/- Sq.ft 1st and 2nd Floor G. NOIDA 1595/- Sq.ft SEC Pi 1566/- Sq.ft 1490/- Sq.ft GURGAON G. NOIDA SEC Pi

ELDECO RESIDENCY GREENS

TULIP 1665 Sq.ft CARNATIO N 1455 Sq.ft DAFFODIL 1200Sq.ft

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PROMOTE R SOUTHEN D FLOORS UNITEC THE CLOSE

AREA 925Sq.ft 1412 Sq.ft 1490 Sq.ft 1570 Sq.ft UNIVERSAL 2000,2480,3170 sq.ft INTERNATIONA L 1657,1990,2113 sq.ft

PRICE (basic) 1486/- Sq.ft 1338/- Sq.ft 1342/- Sq.ft 1433/- Sq.ft RS. 2350/Per sq.ft Rs.2500/Per sq.ft Rs.2000/sq.ft

LOCATION SEC 48-49,SOHNA ROAD GURGAON GURGAON

NRI CITY SINGAPOR E

GREATER NOIDA

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COMPANY PROFILE

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COMPANY POROFILE:

Jaypee Group was founded by Mr. Jai Prakash Gaur in 1958 as a civil contracting firm. In 1979, they came to be known as Jaiprakash Associates Private Ltd (JAPL). Jaypee Rewa Cement Plant (JRCL) with an initial capacity of 1 million tonnes was established in 1980. This marked the beginning of Jaypee Group's stronghold in the cements industry in India. Continuing the legacy was Jaypee Bela Cement Plant (JBCP) in 1996 with an initial capacity of 1.9 million tonnes. The hospitality business of Jaypee Infratech is splendiferous with brand names in themselves. In 1980, JAPL set up Hotel Siddharth and Hotel Vasant Continental in New Delhi, landmarks in their respective areas. These were luxury epitomized and a centre places for all the key business conferences. Another crowning glories are Jaypee Place Hotel Agra and Jaypee Residency Manor Mussoorie. Both Jaypee Palace and Jaypee Residency Manor are iconic structures giving new definitions to hospitality business. Jaypee Group's associate business areas extend to:
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Hydropower Projects operational in Bapsa- II and Karcham Wangtoo (H.P.) and Vishnu Prayag (Uttaranchal) Other Hydropower and Irrigation Projects under execution in Dulhasti and Baglihar in J&K, Tehri in Uttaranchal, Teesta - V in Sikkim, Tala in Bhutan, Sardar Sarover in Gujarat, Omkareshwar in M.P. and Alimineti Madhva Reddy Project in Andhra Pradesh. Educational institutions at Samirpur and Solan in Himachal Pradesh, Noida and Anoopshahar in Uttar Pradesh and Guna in M.P.

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o o o o o

5 Star and 5 Star Deluxe Hotels in Mussoorie, Agra and Delhi. Golf Resort in Greater Noida, U.P. Taj expressway Project connecting Agra with Noida. Integrated Township in Greater Noida. Information Technology

The integrated township by Jaypee Group is Jaypee Greens. This is 450 acres of peace and tranquility of the wilderness in Greater Noida. It includes two golf resorts, villas, penthouses, condominiums, studio apartments, commercial complexes and shopping malls. Jaypee Infratech in an upcoming real estate and construction company as far as new projects are concerned. It is already an established brand name in other key business areas it covers. In residential and commercial properties developments, Jaypee is an emerging name and will continue their rising story with the quality standards touching a new high.

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MAJOR COMPETITORS IN THE REAL ESTATE MARKET

UNITECH
Unitech entered civil engineering in 1974 with its sights firmly set on the future. And that's where our vision is fixed today. Building upon experience and expertise Unitech is constantly looking for ways to improve all our lives. From power transmission lines and highways to theme parks, from steel plants to residential developments, from indoor stadiums to hotels our work is often pioneering and always challenging. Our enviable track record proves our ability to deliver.

Launch of Iconic Towers - AQUA & TERA (part of the Unitech Grande) Imagine living in masterpieces of Architecture, the tallest residential buildings in NCR.A tribute to the men and women who outperform mere potential.

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Launch of Uniworld City in Mohali (part of the Chandigarh Tricity.) 17th Jan'08 Surrounded by acres of greenery, Uniworld City. Mohall is just a 15 minutes drive away from the Chandigarh airport as well as from the proposed Mohali airport.

Launch of residential project Harmony at Uniworld City in Kolkata 16th Aug'07 An ensemble of impressive towers enclosing a breathtaking Central Park, Harmony is located in southeast corner of Uniworld City.

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DLF

The DLF group is a leading real estate developer in India. The group has over 224 million sq. ft. of existing development and 748 million sq. ft. of planned projects. DLF is committed to quality, trust and customer sensitivity, and deliver on promises with agility, financial prudence and in tune with the highest global standards. The company has also entered into several strategic alliances with global industry leaders.

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The core business traditionally has been into three prime divisions: Homes, Offices and Shopping Malls. To these DLF has added three more divisions: Hotels, Infrastructure and SEZs.

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With over six decades of excellence, DLF is a name synonymous with global standards, new generation workspaces and lifestyles. The Group has a distinction of developing commercial projects and technology parks that are at par with the best in the world.

DLF has pioneered the 'walk-to-work' concept in the 3,000-acre DLF City, where well-planned residential developments are integrated with modern business and commercial complexes. DLF's contemporary workplaces are equipped with modern facilities that synchronize functional efficiencies with aesthetic appeal and have been identified as preferred destinations by leading MNC's and Indian corporate, including many Fortune 500 companies. Business Enterprise in real estate industry are expanding at phenomenal pace to meet the ever expanding demand for office and commercial space, especially for the knowledge industry. Recent research carried out by McKinsey NASSCOM estimates the total demand for office space to go up to 500 million sq.ft. in the next 10 Years with IT/BPO contributing 60-70%. The remaining 25-40% shall be met by non-IT and manufacturing sectors. Built on a foundation of strong lineage and an established reputation, DLF Home Developers, the residential business group of DLF, has been a trendsetter in contemporary urban development and housing. These developments have always been all embracing with comprehensive solutions for eminent and quality living.

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DLF has pioneered some of the best-known urban housing and retail destinations in Delhi including South Extension, Greater Kailash, Rajouri Garden, Model Town, Hauz Khas and Kailash Colony. Featuring International standards geared to serve customer needs, the Group's complexes are truly a reflection of quality living and contemporary lifestyles. The product categories of the Group deliver the synergistic strengths of good architecture, appropriate designs, impressive aesthetics and safety features. The Group is also establishing partnerships with reputed leaders in the field of education, healthcare, and hospitality services. DLFs Dominant Current position in Indian homes Segment Pioneered townships and group housing in India

220 million square feet developed as colonies and townships in the past, including 17 million square feet of residential properties Offers superior products in the super-luxury category Several world-class projects in the pipe-line Expansion into multiple cities across country

Indias leading player in homes:

Three generations of relationships with customers Trusted brand Superior execution track record

Superior planning and execution Unique ability to create integrated townships

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Pioneered the development of integrated townships with DLF city Creating the right mix of high quality housing, state-of the art offices, IT parks, world-class shopping malls, digital entertainment, leisure and recreation, efficient Infrastructure, schools, hospitals and other community spaces like parks and clubs

Strong sales and marketing engine

Large network of dedicated direct sales agents Close working relationships with financing institutions High-caliber in-house team well positioned across the country

ANSAL PLAZA :
Ansal Plaza in Delhi at HUDCO Place revolutionized the shopping tradition as it brought the western mall culture and changed the task of shopping into a major style statement. Built by Ansal - API, in a prime location of South Delhi, Ansal Plaza soon changed the face of New Delhi. Ansal Plaza in New Delhi accommodates many international brands. It boasts of exquisite infrastructure with huge underground parking lot. The open air ampi-theatre in the centre of Ansal Plaza Delhi is very famous for organizing music shows, kavi-sammelans, exhibitions, promotional activities as well as fashion shows. The astounding construction with fountain and lush green surroundings has made Ansal Plaza, a landmark in Delhi. The two major brands at Ansal Plaza are Marks & Spencer and Shoppers' Stop. One can find all major brands in it. It can be called a "one stop shop for all." It accommodates garment shops, book shop, music shop, mobile shop, candy shop, gift shop, jewelry shop, sports accessories shop, art gallery, toy shop, beauty shop and many more. Several popular fast food
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joints are also housed in there like Subway, Mc. Donald's, Amoretto's, Geoffrey's, Pizza Express and Nescafe. The Funkie Orbit is a major attraction for kids. Ansal Plaza is one of the important malls in New Delhi that also offers exclusive services of Hutch, J&K Bank and Club Mahindra Holiday. Ansal Plaza is undoubtedly a paradise for shopping freaks as the excellent services provided with the best of brands available all under one roof. It has certainly become a brand in itself. Indiahousing.com offers the address of Ansal Plaza to meet all your shopping needs.

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REAL ESTATE LIST

Ansals

Parsvnath Noida

Ansal Plaza Ansal API

Ansal Buildwell Ansal Housing Prestige Homes and Construction Limited Parsvnath City Mahagun Builders Parsvnath Shipra Real Estate Builders Group Parsvnath Mahindra GESCO Gurgaon Developers DLF Group DLF IPO India DLF Kochi DLF Projects DLF Golf Club DLF Builders DLF Real DLF Apartments Estate DLF Phase 3 DLF Phase 4 Eldeco Group Gaursons Kalpataru Builders Eros Group

Ashiana Builders and Developers K Raheja Universal HDIL Issue Builders GMR Infrastructure Unitech India

HDIL Housing Development and Infrastructure Ltd. Arun Dev Builders

Unitech Property

Unitech Kolkata Vatika City Builders Omaxe Group India Limited Triveni Constructions and Properties Vatika Group TDI Developers

Unitech Builders India

Unitech Bangalore Unitech Greater Noida

Vipul Builders Gurgaon TDI Constructions and Builders DLF Properties DLF Gurgaon DLF Chennai DLF Flats DLF Phase 1 DLF Kolkata DLF Malls DLF Phase 2

Sahara Infrastructure Goel Ganga Group Montvert Builders And

DLF Phase 5 DLF SEZ Supertech Builders And Jaipuria Group Developers Shipra Group Confident Group Alpine Group

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Pushpanjali Builders Prestige Builders Shapoorji Pallonji Group Navin Group of Builders Godrej Properties D S Kulkarni Builders & Developers Larsen & Tourbo Future Group

Developers Achievers Builders JMD Builders Shriram Builders Dwarkadhis Builders

Tata Housing Kanakia Builders

Adarsh Developers Appaswamy Real Estate Chaitanya Builders Builders M2K Developer Crossings Republik Emaar MGF Group Panchsil Realty Group Oberai Constructions HUDCO Bearys Group Purvankara Builders Vascon Engineers Jaypee Infratech

CREDAI

Kolte Patil Developers

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RESEARCH METHODOLOGY

METHODOLOGY:
Research is a common language refers to a search of knowledge. Research is scientific & systematic search for pertinent information on a specific topic, infect research is an art of scientific investigation. Research Methodology is a scientific way to solve research problem. It may be understood as a science of studying how research is dont scientifically. In it we study various steps that are generally adopted by researchers in studying their research problem. It is necessary for researchers to know not only know research method techniques but also technology. The scope of Research Methodology is wider than that of research methods. The research problem consists of series of closely related activities. At times, the first step determines the native of the last step to be undertaken. Why a research has been defined, what data has been collected and what a particular methods have been adopted and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. The project is a study where focus is on the following points:

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RESEARCH DESIGN:
A research design is defined, as the specification of methods and procedures for acquiring the Information needed. It is a plant or organizing framework for doing the study and collecting the data. Designing a research plan requires decisions all the data sources, research approaches, Research instruments, sampling plan and contact methods. Research design is mainly of following types: 1. Exploratory research. 2. Descriptive studies 3. Casual studies

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EXPLORATORY RESEARCH: The major purposes of exploratory studies are the identification of problems, the more precise Formulation of problems and the formulations of new alternative courses of action. The design of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity.

DESCRIPTIVE STUDIES :
Descriptive research in contrast to exploratory research is marked by the prior formulation of specific research Questions. The investigator already knows a substantial amount about the research problem. Perhaps as a Result of an exploratory study, before the project is initiated. Descriptive research is also characterized by a Preplanned and structured design.
CASUAL OR EXPERIMENTAL DESIGN :

A casual design investigates the cause and effect relationships between two or more variables. The hypothesis is tested and the experiment is done. There are following types of casual designs: I. II. III. IV. V. VI. VII. After only design Before after design Before after with control group design Four groups, six studies design After only with control group design. Consumer panel design Exposit facto design

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B)

DATA COLLECTION METHOD

PRIMARY

SECONDARY

Direct personal Interview Indirect personal Interview

Published Sources

Unpublished Sources

Information from correspondents Mailed questionnaire Commissions Question filled by enumerators.

Govt.publication Report Committees &

Private Publication Research Institute

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PRIMARY DATA:
These data are collected first time as original data. The data is recorded as observed or encountered. Essentially they are raw materials. They may be combined, totaled but they have not extensively been statistically processed. For example, data obtained by the peoples.

SECONDARY DATA:
Sources of Secondary Data Following are the main sources of secondary data: 1. Official Publications: Publications of the JAYPEE REAL ESTATE and by the corporate office of JAYPEE REAL ESTATE. 2. Publications Relating to Trade: Publications of the trade associations, stock exchange, trade union etc. 3. Journal/ Newspapers etc.: Some newspapers/ Journals collect and publish their own data, e.g. Indian Journal of economics, economist, Economic Times. 4. Data Collected by Industry Associations: For example, data available with JAYPEE REAL ESTATE. 5. Unpublished Data: Data may be obtained from several companies, organizations, working in the same areas. For example, data on JAYPEE REAL ESTATE magazines.

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Period of Study: This study has been carried out for a maximum period of 8 weeks. Area of study: The study is exclusively done in the area of marketing. It is a process requiring care, sophistication, experience, business judgment, and imagination for which there can be no mechanical substitutes. Sampling Design: The convenience sampling is done because any probability sampling procedure would require detailed information about the universe, which is not easily available further, it being an exploratory research. Sample Procedure: In this study judgmental sampling procedure is used. Judgmental sampling is preferred because of some limitation and the complexity of the random sampling. Area sampling is used in combination with convenience sampling so as to collect the data from different regions of the city and to increase reliability. Sampling Size: The sampling size of the study is 50 users.

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Method of the Sampling

Probability Sampling:
It is also known as random sampling. Here, every item of the universe has an equal chance or probability of being chosen for sample. Probability sampling may be taken inform of:

Simple Random Sampling

A simple random sample gives each member of the population an equal chance of being chosen. It is not a haphazard sample as some people think! One way of achieving a simple random sample is to number each element in the sampling frame (e.g. give everyone on the Electoral register a number) and then use random numbers to select the required sample. Random numbers can be obtained using your calculator, a spreadsheet, printed tables of random numbers, or by the more traditional methods of drawing slips of paper from a hat, tossing coins or rolling dice.

Systematic Random Sampling

This is random sampling with a system! From the sampling frame, a starting point is chosen at random, and thereafter at regular intervals.

Stratified Random Sampling

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With stratified random sampling, the population is first divided into a number of parts or 'strata' according to some characteristic, chosen to be related to the major variables being studied. For this survey, the variable of interest is the citizen's attitude to the redevelopment scheme, and the stratification factor will be the values of the respondents' homes. This factor was chosen because it seems reasonable to suppose that it will be related to people's attitudes

Cluster and area Sampling

Cluster sampling is a sampling technique used when "natural" groupings are evident in a statistical population. It is often used in marketing research. In this technique, the total population is divided into these groups (or clusters) and a sample of the groups is selected. Then the required information is collected from the elements within each selected group. This may be done for every element in these groups or a subsample of elements may be selected within each of these groups.

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Non Probability Sampling

It is also known as deliberate or purposive or judge mental sampling. In this type of sampling, every item in the universe does not have an equal, chance of being included in a sample. It is of following type:

Convenience Sampling
A convenience sample chooses the individuals that are easiest to reach or sampling that is done easy. Convenience sampling does not represent the entire population so it is considered bias.

Quota Sampling
In quota sampling the selection of the sample is made by the interviewer, who has been given quotas to fill from specified sub-groups of the population.

Judgment Sampling
The sampling technique used here in probability > Random Sampling. The total sample size is 50 profiles.

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Data Collection : Data is collected from various customers through personal interaction. Specific questionnaire is prepared for colleting data. Data is collected with mere interaction and formal discussion with different respondents and we collect data in JAYPEE REAL ESTATE and face to face contact with the persons from whom the information is to be obtained (known as informants). The interviewer asks them questions pertaining to the survey and collects the desired information. Thus, the we collect data about the working conditions of the workers of JAYPEE REAL ESTATE; I worked at JAYPEE REAL ESTATE contact the workers and obtain the information. The information obtained are first hand or original in character.

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BUSINESS STRATEGIES OF THE REAL ESTATE INDUSTRY

THE MARKETING CONCEPT
The marketing concept is a business philosophy that challenges the three business orientations we just discussed. Its central tenets crystallized in the mid-1950s.

The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.

The marketing concept has been expressed in many colorful ways: "Meeting needs profitably." "Find wants and fill them.' "Love the customer, not the product." "Have it your way.' (Burger King) "You're the boss." (United Airlines) "Putting people first." (British Airways) "Partners for profit." (Milliken & Company) Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing concepts: Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller's need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.
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The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and profitability. They are illustrated in Figure where they are contrasted with a selling orientation. The selling concept takes an inside-out perspective. It starts with the factory, focuses on existing products, and calls for heavy selling and promoting to produce profitable sales. The marketing concept takes an outside-in perspective. It starts with a well defined market, focuses on customer needs, coordinates all the activities that will affect customers, and produces profits by satisfying customers. see the Marketing Insight Scholars and Dollars: Marketing and Selling Comes to College.

Target Market
Companies do best when then choose their target market(s) carefully and prepare tailored marketing programs

Customer Needs
A company can define its target market but fail to correctly understand the customers' needs. Consider the following example: A major chemical company invented a new substance that hardened into a marble like material. Looking for an application, the marketing department decided to target the bathtub market. The company created a few model bathtubs and exhibited them at a trade show. They hoped to convince manufacturers to produce bathtubs with the new material. Although bathtub manufacturers thought the tubs were attractive, none signed up. The reason

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soon became obvious. 7he bathtub would have to be priced at $2,000, whereas most bathtubs sold in the $500 range. For the higher price, consumers could buy tubs made out of real marble or onyx. In addition, the bathtubs were so heavy that homeowners would have to reinforce their floors. Understanding customer needs and wants is not always simple. Some customers have needs of which they are not fully conscious. Or they cannot articulate these needs. Or they use words that require some interpretation. What does it mean when the customer asks for an 'inexpensive" car, a 'powerful' lawn mower, a 'fast' lathe, an "attractive" bathing suit, or a 'restful" hotel? Consider the customer who says he wants an inexpensive car. The marketer must probe further. We can distinguish among five types of needs: 1. Stated needs (the customer wants an inexpensive car) 2. Real needs (the customer wants a car whose operating cost, not its initial price, is low) 3. Unstated needs (the customer expects good service from the dealer) 4. Delight needs (the customer would like the dealer to include a gift of a U.S. road atlas) 5. Secret needs (the customer wants to be seen by friends as a savvy consumer) Responding only to the stated need may shortchange the customer. Consider a woman who enters a hardware store and asks for a sealant to seal glass window panes. This customer is stating a solution, not a need. The salesperson might suggest that tape would provide a better solution. The customer may appreciate that the salesperson not her need, not her stated solution.

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A distinction needs to be drawn between responsive marketing, anticipative marketing, and creative marketing. A responsive marketer finds a stated need and fills it. An anticipative marketer looks ahead into what needs customers may have in the near future. A creative marketer discovers and produces solutions customers did not ask for but to which they enthusiastically respond. Hamel and Prahalad believe that companies must go beyond just asking consumers what they want: Customers are notoriously lacking in foresight. Ten or 15 years ago, how many of us were asking for cellular telephones, fax machines, and copies at home, 24-hour discount brokerage accounts, multi valve automobile engines, compact disc players, cars with on-board navigation systems, handheld global satellite positioning receivers, automated teller machines, MTB, or the Home Shopping Network? Why is it supremely important to satisfy target customers? Because a company's sales each period come from two groups: new customers and repeat customers. One estimate is that attracting a new customer can cost five times as much as pleasing an existing one. And it might cost sixteen times as much to bring the new customer to the same level of profitability as the lost customer. Customer retention is thus more important than customer attraction.

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Integrated Marketing
When all the company's departments work together to serve the customer's interests, the result is integrated marketing. Unfortunately, not all employees are trained and motivated to work for the customer. An engineer once complained that the salespeople are "always protecting the customer and not thinking of the company's interest'! He went on to blast customers for "asking for too much." The following example highlights the coordination problem: The marketing vice president of a major European airline wants to increase the airline's traffic share. His strategy is to build up customer satisfaction through providing better food, cleaner cabins, better trained cabin crews, and lower fares. Yet he has no authority in these matters. The catering department chooses food that keeps down food costs; the maintenance department uses cleaning services that keep down cleaning costs; the human resources department hires people without regard to whether they are naturally friendly; the finance department sets the fares. Because these departments generally take a cost or production point of view, the vice president of marketing is stymied in creating an integrated marketing mix. Integrated marketing takes place on two levels. First, the various marketing functions-sales force, advertising, customer service, product management, marketing research-must work together. Too often the sales force thinks product managers set prices or sale quotas "too high"; or the advertising director and a brand manager all not agree on an advertising campaign. All these marketing functions must be co-ordinated from the customer's point of view. Second, marketing must be embraced by the other departments; they must also "think customer." According to David Packard of Hewlett-Packard:
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"Marketing is far too important to be left only to the marketing department!" Marketing is not a department so much as a company wide orientation. Xerox goes so far as to include in every job description an explanation of how that job affects the customer. Xerox factory managers know that visits to the factory can help sell a potential customer if the factory is clean and efficient. returning calls. To foster teamwork among all departments, the company carries out internal marketing as well as external marketing. External marketing is marketing directed at people outside the company. Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. marketing. In fact, internal marketing must precede external It makes no sense to promise excellent service before the Xerox accountants know that customer attitudes are affected by Xeroxs billing accuracy and promptness in

company's staff is ready to provide it. Managers who believe the customer is the company's only true 'profit center' consider the traditional organization chart in Figure 1.8(a)- a pyramid with the president at the top, management in the middle, and frontline people and customers at the bottom-obsolete. Master marketing companies invert the chart, as shown in Figure 1.8(b). At the top are the customers; next in importance are the front-line people who meet, serve, and satisfy the customers; under them are the middle managers, whose job is to support the front-line people so they can serve the customers well; and at the base is top management, whose job is to hire and support good middle managers. We have added customers along the sides of Figure 1.8(b) to indicate that all the company's managers must be personally involved in knowing, meeting, and serving customers.

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Profitability
The ultimate purpose of the marketing concept is to help organizations achieve their objectives. In the case of private firms, the major objective is profit; in the case of nonprofit and public organizations, it is surviving and attracting enough funds to perform useful work. Private firms should not aim for profits as such but to achieve profits as a consequence of creating superior customer value. Frank Perdue's philosophy: Most companies do not embrace the marketing concept until driven to it by circumstances. Various developments prod them to take the marketing concept to heart:

A company makes

money by satisfying customer needs better than its competitors. Consider

Sales decline: When sales fall, companies panic and look for answers. Today, newspapers are experiencing declining circulation as more people rely on radio, TV, and the Internet for their news. Some publishers now realize that they know little about why people read newspapers. These publishers are commissioning consumer research and attempting to redesign newspapers to be contemporary, relevant, and interesting to readers. They are also starting Web pages. Slow growth: Slow sales growth leads some companies to search for new markets. They realize they need marketing skill to identify and select new opportunities. Wanting new sources of revenue, Dow Chemical entered consumer markets and invested heavily to acquire consumer marketing expertise to perform well in these markets.

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Changing buying patterns: Many companies operate in markets

characterized by rapidly changing customer wants. These companies need more marketing know- how if they are to track buyers' changing values. Increasing competition: Complacent companies may suddenly be attacked by powerful competitors. AT&T was a regulated, marketingnaive telephone company until the 1970s, when the government began allowing other companies to sell telecommunications equipment. AT&T plunged into the marketing waters and hired the best marketers it could find to help it compete. Companies in deregulated industries all find it necessary to build up marketing expertise. Increasing marketing expenditures: Companies may find their expenditures for advertising, sales promotion, marketing research, and customer service to be poorly done. Management then decides it is time to undertake a serious marketing audit to improve its marketing. In the course of converting to a marketing orientation, a company faces three hurdles: organized resistance, slow learning, and fast forgetting.

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BUSINESS AND MARKETING ARE CHANGING

We can say with some confidence that 'the marketplace isn't what it used to be. It is changing radically as a result of major societal forces such as technological advances globalization, and deregulation. These major forces have created new behaviors challenges: Customers increasingly expect higher quality and service and some customization They perceive fewer real product differences and show less brand loyalty They cab obtain extensive product information from the Internet and other sources, peel ting them to shop more intelligently. They are showing greater price sensitive their search for value. Brand manufacturers are facing intense competition from domestic and foreign brands, which is resulting in rising promotion costs and shrinking profit margins. They are being further buffeted by powerful retailers who command limited shelf space and are putting out their own store brands in competition with national brands. Store-based retailers are suffering from an oversaturation of retailing. Small retailers are succumbing to the growing power of giant retailers and "category killers.' Store-based retailers are facing growing competition from catalog houses; direct-mail firms; newspaper, magazine, and TV direct-tocustomer ads; home shopping TV; and the Internet. As a result, they are experiencing shrinking margins. In response, entrepreneurial retailers are building entertainment into stores with coffee bars, lectures, demonstrations,
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and performances. They are marketing an 'experience" rather than a product assortment.

COMPANY RESPONSES AND ADJUSTMENTS

Companies are doing a lot of soul-searching, and many highly respected companies are changing in a number of ways. Here are some current trends: Re-engineering : From focusing on functional departments to reorganizing by key processes, each managed by multidiscipline teams. Outsourcing : From making everything inside the company to buying more goods and services from outside if they can be obtained cheaper and better. A few companies are moving toward outsourcing everything, making them virtual companies owning very few assets and, therefore, earning extraordinary rates of return. E-commerce : From attracting customers to stores and having salespeople call on offices to making virtually all products available on the Internet. Consumers can access pictures of products, read the specs, shop among on-line vendors for the best prices and terms, and click to order and pay. Business-to-business purchasing is growing fast on the Internet: Purchasing agents can use bookmarked Web sites to shop for routine items. Personal selling can increasingly be conducted

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electronically, with buyer and seller seeing each other on their computer screens in real time. Benchmarking : From relying on self-improvement to studying "worldclass performers' and adopting "best practices." Alliances : From trying to win alone to forming networks of partner firms. Partner-suppliers : From using many suppliers to using fewer but more reliable suppliers who work closely in a 'partnership" relationship with the company. Market-centered: From organizing by products to organizing by market segment. Global and local : From being local to being both global and local. Decentralized : From being managed from the top to encouraging more initiative and "intrepreneurship' at the local level.

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ENVIRONMENTAL ISSUES
Do you believe that major highways should be closed to protect an endangered species? Do you believe there should be a relationship between costs and benefits when it comes to environmental issues? Did you grow up in a home with lead-based paint? Do you believe that condor is better served with rice or a glazed sauce? Just curious.... At the local level, voters ought to ask about tax policies, zoning, growth restrictions, road development, rent control (where it still exists), subsidized housing and so-called "smart growth" policies. And at the end of this process -- whether or not you can get a straight answer to any of these questions -- you ought to go out and vote in November. It's your way to exercise power.

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GOVERNMENT POLICY
Government National Energy Policy in Real Estate The Issue
Electricity is one of the largest operating expenses for owners of commercial real estate. Legislation at both the federal and state levels would deregulate and promote competition in the electric utility industry, thus presumably providing cheaper, more efficient power to owners and operators of commercial real estate and presenting commercial real estate developers with choices regarding utility providers. To date there has been much debate over which path our country should move with a national energy policy. Much of the debate has been focused on several issues:

Consumer access to adequate supplies of reasonably priced energy. Reduction in the demand for energy. Incentives for all consumers to improve their energy efficiency. Increased domestic energy supplies, less reliance on foreign energy sources Modernization and expansion of the existing power grid capabilities.

Position
Members believe that a comprehensive approach is the best way to ensure all consumers realize the most wide-ranging benefits while ensuring the country conserves its natural resources. Further, believes that the Federal Government must implement a national energy policy, which guarantees all consumers have access to adequate supplies of reasonably priced energy.

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Believes that this goal may be achieved only if the Federal Government demonstrates a leadership role in:

Identifying reliable sources of domestic and renewable energy. Eliminating unreasonable regulatory burdens and restrictions which inhibit the development of these energy sources. Identifying and eliminating regulatory structures which impose artificial pricing schemes. Ensuring an uninterrupted transmission and distribution energy network. Protecting consumers in the absence of competitive market forces.

Legislation

No new legislation has been introduced in the 109th Congress

Talking Points

Identify reliable sources of domestic and renewable energy. Eliminate unreasonable regulatory burdens and restrictions which inhibit the development of these energy sources. Identify and eliminate regulatory structures which impose artificial pricing schemes. Ensure an uninterrupted transmission and distribution energy network. Protect consumers in the absence of competitive market forces.

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TAX ASPECTS
INCOME TAX REVIEW Tax Issues
1. The object of this article is to deal with certain aspects of income tax pertaining to construction business. It is not intended to cover all the aspects as there are other articles in this special issue, e.g. there are separate articles on presumptive taxation, development agreements, etc in respect of construction or real estate-development activity. I have attempted to touch upon the following points: a. Treatment of land cost (introduction by partner, conversion into stock in trade etc. ) b. Capital Asset vs. stock in trade c. Valuation of Work in progress, Job completion method vs. Percentage Completion Method and Variations thereof. d. Statutory disallowances e. Various Tax incentives (including 80-IB) 2. Accounting and taxation of construction business often pose serious problems due to the following factors a. There are various methods of accounting cash vs. mercantile; completed contract vs. progressive completion; b. Projects usually range over a long period often more than one or two years and there is an element of uncertainty in determination of profits. c. Various events are to be reconciled with each other-viz. entering into of agreements, execution of agreement , handing
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over of possession, progressive payments, concepts of FSI, TDR, roles of builder developers vis--vis contractors. d. Amounts involved are usually quite high and even a small error in judgment may have serious repercussions. e. Accounting standards also elude simplicity. f. Motivations of Revenue Authorities are also vicious. Nevertheless, one has to face the reality. Hence, this exercise to find practical interpretations. 3. Treatment of land cost 1. The deals of purchase of land are seldom simple and straight forward. Payments are partly in money and partly in kind say giving constructed flats, shops, etc. There are litigations; tenants to be settled, encroachments to be removed, Government restrictions to be cleared, interests on borrowings for purchase of land, stamp duty and registration fees; and so on. Grants of additional FSI, purchase of TDR etc. create further complications. 2. The cost of the land is added to the total cost of project proportionate to the construction completed vis a vis the total construction. 3. Introduction of land by the Partner In case the plot of land is introduced by the partner as his capital contributions, as per section 45(3), the value of asset recorded in the books of accounts of the firm is to be taken as the full value of consideration received or accrued as a result of the transfer of land. As a corollary, the same will be treated as cost in the hands of the firm.
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4. Many times, the land is purchased where there are already unauthorized dwelling units. Certain amount of compensation or similar other cost is required to be incurred for clearing such encroachments. Such costs form part of the cost of the land. 2. Capital asset vs. stock in trade 1. Conversion of land held as capital asset into Stock-in trade [Section 45 (2)] In many cases, an individual who holds a large area of land converts it into stockintrade and carries on business of construction/development. In such an event, the market value of land on the date of conversion will be considered and capital gains will be computed. However, these capital gains will be chargeable to tax when such land is developed/constructed and sold. In case, such sale spreads over more than one year, capital gains pro-rata will be chargeable to tax. Correspondingly, for determining business income, such market value on the date of conversion would be regarded as cost. 2. In the construction industry, land is considered as stock-intrade. Ordinarily, therefore, the question of capital gain does not arise on sale of land. Hence, Question of Sec. 50 C does not arise. 3. Valuation of Work in progress, Job completion method vs. Percentage Completion Method and Variations thereof 1. In the completed contract method, the profit from the project as such is effectively accounted for only in the year in which the project is substantially completed. If some minor or
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insignificant part of the project is remaining, this cannot be a valid reason to postpone the tax liability. In practice, at the end of the year, the work-in-progress is simply carried forward at cost. However, the overheads, which cannot be directly attributed to the project cost, have to be debited to profit and loss account. This may result into a loss, which may be carried forward. In the year of completion of project, the profit on the project will be accounted for and the accumulated losses will be offset. When there is only one project, the situation appears to be rather anomalous. However, when there are several projects getting completed in different years, the fact does not become very glaring. There is insistence by I. T. department not to follow this method as income is deferred to the subsequent year. 2. In percentage completion method, there is a risk. One may account for the estimated profit on the progress of completion from year to year. However, when the project is completed, it may have resulted in a loss or a profit which is less than what is submitted earlier. Unfortunately, there is no remedy to the over-payment of taxes in the earlier years. Therefore, there is a tendency to adopt the completed contract basis. When there are a number of projects at varied completion stages, the loss can be offset against the profits of others. But in a single project, this method may pose problems. 3. Section 145 recognises only two methods, viz. Cash or Accrual. The methods described in preceding paragraphs viz. completion or progressive - have to be fitted into either cash or

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mercantile. It is more or less settled that these methods can be called as a variant of mercantile method. 4. In cash as well accrual method, one cannot take a dogmatic or extreme view. Thus, merely because advances are received, there may not be any element of income even in cash system. On the other hand, if a builder enters into agreement for sale of flats and receives part advances, he need not account for the entire sale merely on the basis of such agreements. One has to decide the correct profitability from year to year in the facts and circumstance of the case. 5. It is interesting to note that when a contract is inclusive of materials and the materials are supplied by the contract, the profits u/s 44 AD are to be estimated only on net labour payment. (Circular No.684 dtd. 10-6-1994). On the other hand, tax u/s 194C is to be deducted on the entire contract value (Circular No.295 dt. 6-3-1981 F.No.275/56/79 - IT13) 6. The quantum of profits to be offered to tax often poses problems, since project extends over more than one year. There are cases where the books of account are rejected by the AO and profits are estimated; still the depreciation, interest, salary, bonus payable to the partner as provided in Section 40(b), should be deducted. The CBDT circular dated 31-8-1965 also states that depreciation must be deducted from the estimated profits. (Jain Construction Co. 156 CTR 290 Raj) 7. Many times builder receives the advances exceeding Rs. 40 lacs. However, in the Profit & Loss Account, profit is computed by taking difference between opening Work-InProgress (WIP), expenses incurred during the year and the
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market value of closing WIP. The question arises whether Tax Audit is necessary?

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8. Method of Accounting

The assessee was a builder who sold two buildings in two assessment years. In the third year, there were major receipts from the projects. The assessee offered the income of all the three years in the third year since he was following Project Completion Method. The AO estimated the income for the first two years. It was also argued by the Revenue that the assessee was not a builder but was only a financier/Supervisor of the building. The land was also not transferred to the assessee. Retention money Treatment while computing the total income and tax liability Often the question arises whether retention amount should be offered to tax due to the fact that such receipt is contingent upon various factors. Since the receipt is uncertain, it is logical that the same should be offered to tax as and when received. In case the retention amount is not received, the TDS amount on the retention money may have to be forgone. It is worth noting that the old Accounting Standard (AS-7) permitted both the treatments namely recognition of Income on accrual basis or on receipt basis. However, the revised AS-7 is silent on this issue. Redevelopment of old societies In Mumbai, there are number of old housing societies. These societies demolish the old structure and construct the new one. TDR is purchased for construction of the additional area. This additional area is sold and cost of

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construction of the new structure is met. This activity of the housing society can be considered as business activity and the profit should be computed accordingly.

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FUTURE PROSPECTS OF REAL ESTATE INDUSTRY

Non-commission revenues will become critical to the profitability formula. More and more menu driven services will be offered. Almost every aspect of the transaction will be part of an electronic. Electronic commerce will require standardization. Standards will cause commodization. The unconnected agent will become the endangered species. Predictability/accountability will be the keys. The agent will be reevaluated. The Internet business will be a significant market share (25-Interactivity on the Internet will be the norm. A significant share of transactions will be managed from point of contact. Meeting the customers definition of value will be Managed transactions will use designated service providers at all levels of the transaction. Marketing resources will be invested where they generate proven results. Range of products and services will be limited only by imagination. The real estate industry should prepare for an increasingly technologydriven environment in which empowered consumers drive the mark competitive dynamics. A plethora of new entrants will emerge to capitalize on technology enabling new business models and value propositions.

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Careers in Real Estate

The real estate profession has expanded and offers one of the widest career selections in the business world today. Helping people buy and sell homes, office buildings, industrial property and corporation farmland, property management, land development, mortgage banking, urban planning, real estate counseling, appraisal and research are all aspects of a career in real estate. The "voice for real estate" and the industry's national professional organization is the National Association of Realtors.

Advantages and Rewards of a Career in Real Estate

A career in real estate provides flexibility and freedom to set your own pace. Income directly reflects your efforts, with no limits on what astute, hard-working men and women can earn. Successful people in real estate are goal-oriented, persevering, self-motivated, ambitious and people-oriented. The rewards of a real estate career are a potential for high earnings, status in the community, autonomy, time freedom, helping people, the intellectual challenge and the satisfaction from those accomplishments. Working in real estate allows for independence and choices of environment in which to work, such as affiliation with a large or small firm as a listed salesperson. With more experience and upon passing of an additional exam, becoming a real estate broker is the next step. Brokers can own their own businesses and employ other salespeople.

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Types of Careers in Real Estate:

Careers in Residential Brokerage
Helping people buy and sell homes, is one of the most important and basic services a real estate agent performs. Agents are experts in the process of buying and selling property, financing, government programs, for example. The real estate agent's expertise facilitates the transaction, saving clients time, trouble and money. Real estate professionals need to have a thorough knowledge of such areas as real estate law, local economics, fair housing laws, types of financing, mortgages and government programs.

Careers in Commercial Brokerage

Commercial brokers specialize in income-producing properties, such as apartment and office buildings, retail stores and warehouses, shopping centers and industrial parks. To understand and explain why the properties are good investments, commercial brokers need to be aware of the growth possibilities of the area where the property is located, current income tax regulations and purchasing arrangements that give the buyer a greater return on investment. Commercial brokers may also have to arrange financing.

Careers in Industrial and Office Brokerage

Industrial and office brokers specialize in the developing, selling or leasing property used for industry or manufacturing. Brokers need to understand different types of industries and determine such variables as transportation, proximity to raw materials, water and power, labor availability and local building, zoning and tax laws.

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Careers in Property Management

The property manager's primary function is to maintain the property in order to produce the highest possible financial return over the longest period of time. More importantly, the property manager is responsible for protecting the owner's investment. Managed commercial properties are likely to be office buildings and shopping centers. Residential properties might be apartment buildings, apartment developments, condominiums and groups of homes owned by a single investor. Property managers usually work for real estate firms. However, other opportunities are found in the real estate department of banks and trust companies. For large housing and commercial developments, managers are often expected to maintain an office or residence on the premises and work with only one enterprise. When living onsite, property managers can expect to be on call for emergencies at all times, beyond maintaining standard working hours.

Careers in Land Development

Land development is one of the most important and challenging specialties in real estate today. Developers turn land into profitable, marketable developments - residential, commercial or industrial. Site selection is the first decision developers must make. Planning and layout is handled only after the developer determines the need for a project. Before the actual building can begin, developers must first analyze all costs and arrange the financing. Then, they contract for the physical structures and supervise construction. Finally, developers promote the finished development to the prospects for whom it was planned.

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Careers in Farm and Land Brokerage

Land brokers deal in land for farming and acquisition of rural land by cities for residential, commercial and industrial expansion. Success as a land broker depends on how accurately the income potential of the property can be established. Brokers need a good working knowledge of various factors which determines a farm's capacity to produce, including agricultural knowledge and information such as market centers and transportation facilities.

Careers in Real Estate Appraising

Real estate appraisers determine the value of properties. Real estate is appraised to determine many types of values - assessed value for tax purposes, investment value or present value for a potential investor, "book" value for accounting purposes, rental value for income projections and insurable value. Appraisers need to know acceptable principles of appraisal and related information. They need to have practical experience, technical education, good judgement and some knowledge of mathematics, accounting and economics.

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Careers in Urban Planning

If you would like to improve the environment and the quality of people's lives, becoming an urban planner may fulfill your career objective. Urban planners work with local governments and other civic groups to anticipate their city's future growth. They propose physical changes to accommodate this growth. Not many career guidelines exist for urban planning, but broad general experience is important. Some colleges are now offering degrees in urban planning.

Careers in Real Estate Counseling

Real estate counselors are in the business of giving advice about property. They are the experts others seek when they want answers to real estate questions. Counselors must know every phase of the real estate business because they use that knowledge in nearly every consultation. Often they will be asked about income opportunities and productive uses of different kinds of properties. There are relatively few brokers specializing in counseling, but the field will grow as investors and owners realize the value of expert advice in developing property and improving income. While accumulating experience in other real estate specialties, people planning to become real estate counselors also continue to study in continuing education programs in financial management.

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Careers in Real Estate Research

Real estate researchers contribute to the decisions of many other real estate specialists. Brokers, property managers, appraisers, financing experts and counselors all depend on data provided by research. Research can be divided into two main categories - physical and economic. Physical research means studying buildings and structures of all types, especially in terms of the selection and efficient use of construction materials. Economic research consists of determining reliable answers to questions like, "How many people hope to buy homes next year?" - "What will it cost them to borrow mortgage money?" and "What percentage of the nation's homes are substandard?"

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BARRIERS TO REAL ESTATE INDUSTRY

First, barriers for market access will be removed this year. According to INDIAs WTO commitment, wholly foreign-funded companies will be allowed to enter its real estate market within three years after its WTO accession, and Sino-foreign cooperative and joint venture real estate companies given national treatment. Following this principle, Delhi has relaxed the restrictions for overseas investment to enter the citys property market. Though overseas investment in the sector appeared mostly in the form of a joint venture, some foreign companies still plan on setting up wholly owned firms in India. Second, the 2008 Olympic Games to be held in Beijing has spurred the development of the citys real estate industry. Seeing the event as an opportunity, many foreign companies came to seek cooperative partners in property development, including those from the United States, the Republic of Korea and Germany. Third, the increasingly mature market has helped boom the sector. Delhi has also witnessed the improvement of the financing market and opening of land transactions, both serving as important conditions for the sound development of its real estate market.

Early this year, Delhi issued a new regulation on the use of land for commercial projects. According to the regulation, the former practice of transferring the right to use land on the basis of agreement is replaced by auction, public bidding and other open ways, which is seen as a tangible

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step toward the establishment of an open, transparent and regular real estate market. The ongoing designing of the overall layout of Delhi will be completed at the end of this year. By then more opportunities for overseas investors will present themselves. The design is a new blueprint for the development of Delhi .

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DATA ANALYSIS
Q.1. Have purchased any flat or commercial shop from Real Estate?

33% Yes No 67%

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Q.2. From which Real Estate have you purchased ?

17% 31% Jaypee Group Unitech DLF Ansal Plaza 28%

24%

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Q.3. Have you purchased Jaypee Group?

41% 59%

Yes No

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Q.4. How are the services you get from Japypee Group?

12% Excellent Better Poor

32%

56%

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Q.5. Are they provide good facility comparison to others?

23% 77% 23% Yes No

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Q.6. Are the Banks provide loan against flat easily?

44% 34% 22% Yes No Can't Say

Yes

No

Can't Say

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Q.7. Have you got good environment around the flat?

10%

Yes 33% No 57% Can't Say

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Q.8. According to you are you satisfy with Jaypee Group?

13%

Yes No

87%

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Q.9. Have you purchased another flat from any Real Estate?

31% Yes No 69%

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Q.10. If yes then from which?

28%

22% Parsvnath Unitech DLF Ansal Plaza

24% 26%

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SWOT ANALYSIS
STRENGTH:
Brand recognition. Brand Standardized products. Capable of surviving in Long run. Products are familiar to consumer. Result oriented products. Financially sound. Good Diversified Management. WEAKNESS: Presence of competitive priced makes market weaker in some areas. Nation wide same strategy. No endorser of brand.

OPPORTUNITIES:
Now the diversified strategies should be adopted, as it has been long in adhesives. No established competitor is the potential advantage. The niche of the market is the rural area and the plenty of opportunities are lying there.

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THREATS: Due to the presence of the low priced firms the competition is proving to be tougher. Aggressive advertising and promotional efforts of competitors are making a shift in the market share of the company.

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RECOMMENDATIONS
Promotional activitiesThis is one of the primary things that are required within the company. During my visits to different Company, I came across that there is no awareness of the company in the form of posters, stands and other related things. One thing that I would like to recommend would be the introduction of more promotional activities so as to generate more revenues for the company. Company can introduce more- Schemes Get together for channel partners Brand recognition in the market To Keep more inventories Advertisement in Institutional Areas Focus more on b and c category Companies - This is also one of the prime things that are required. With around 80% of the revenues coming from less than 20% of the Companies, more focus should be given on b and c category companies. A category agents are said to be the agents who contribute more than Rs.50000 of revenues per month. Companies should focus more on b and c category clients so that more of these clients can be converted into a category. Co-ordination among different channels-With agency office in a different building and no direct control over the district operations,

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transparency between different channels is lacking. With the plan for executives that I have suggested above, there could be more transparency that can come in the overall operations of the NCR region. Different commission slabs for different channels- With commissions being one of the prime motives for the sales Executive to do business with different companies, more and more emphasis should be given on the commissions that are rendered to the agents. Very limited corporate tie ups-This should be one of the most important thing that should be on the agenda for the travel category. A corporate tie-up can easily deliver a business of more than 50000 per month. Other than that, the contract is on a long term basis. This therefore helps in getting an easy business for the company. Therefore, from my point of view, more emphasis should be given on this category of business as well.

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LIMITATIONS

Although every effort has been in to collect the relevant information through the sources available, still some relevant information could not be gathered.

Busy Schedule of Concerned Executives: The concerned executives were having very busy schedule because of which they were reluctant to give appointment. Time: The time duration could not provide ample opportunity to study every detail of the company. Unawareness: Executives were unaware of many terms related to same while asking to them. Confidential Information: As the company on account of confidential report has not disclosed some figures. Moreover, in some cases separate accounts of division are not separately maintained thereby, leading to restrictions in study.

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CONCLUSION
The Indian real estate sector continues its steady progress with overall sales activity going up significantly in the past six months. And the driving factor behind the entire process has been the information technology (IT) sector which has contributed considerably to the demand side. Moreover, the nature of demand has also undergone a complete transformation. From small floor plates of 1,000 sq ft to 5,000 sq ft, the demand has shifted to large contiguous floor plates of 6,000 sq ft to as high as 20,000 sq ft. This has forced builders/developers to offer large floor plates as office space in case of both lease and capital values. "In a buyer's market, sellers will have to offer products as per the requirement of buyers. In this market, only those builders catering to the need-based demand can succeed,. Most of the metros are today gearing up to meet the demand for large floor plates in accordance with the international trend. No longer is work station space per person limited to a mere 50-70 sq ft. Most of these IT companies are looking out for larger office spaces to meet their 100-120 sq ft per person work station need. Partho Gupta, a Mumbai-based software consultant, states that the bottomline is to enhance the productivity level of staffs by providing a conducive working ambience. "The nature of job in this sector is such that one needs a particular kind of surrounding for achieving an optimal efficiency level,. According to a Cushman & Wakefield report, many multinationals are viewing Bandra-Kurla complex as the preferred destination for large commercial space requirement as there are limited options for large contiguous spaces of comparable quality in south, central and north Mumbai. "Earlier it was the price (capital value & rental) factor that governed the relocation process to a large extent. However, now in the last one year or so, companies are relocating their offices in search of large
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floor spaces," opines Mr Ashok Kumar, director, Brooke International. Never before the industry had experienced this kind of demand for large floor plates for office spaces. Adding to this demand is the recent emergence of dotcom start-ups. According to an estimate, in the past eight months, one out of four transactions belonged to dotcom or net-related business. Even as the initial hype has cooled down considerably, these dotcom ventures have played a big role in boosting the demand. Aashish Velkar, director, Cushman & Wakefield is still very bullish about the dotcom-driven demand. "On the positive side, mergers and acquisition have already started in the dotcom business. This will provide consolidation to the entire business and help these companies sustain in the longer run. According to Velkar, once again Bangalore is emerging as the favourite IT destination if one goes by the transactions that have taken place in the past three months.

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BIBLIOGRAPHY

BOOKS
Kotler, Philip and Armstrong, Graw - Principles of Marketing, Pearson Education, New Delhi 2007. Kotler, Philip - Marketing Management: Analysis, Planning, Implementations and Control, Pearson Education, New Delhi. 2003, 11th ed. Sharma J K - Business Statistics (Pearson Education) Beri - Marketing Research (Tata McGraw-Hill), 1993, 2nd ed. Kothari C.R. Research Methodology

DAILYS & JOURNALS

Business World Business Today The Economic Times

WEBSITE
1. 2. 3. www.google.com www.altavista.com wwww.tajhitech@indiatimes.com

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QUESTIONNAIRE

PERSONAL INFORMATION:
Name.. Age. Address Contact No.

Q.1. Have purchased any flat or commercial shop from Real Estate? (a) Yes (b) No

Q.2. From which Real Estate have you purchased ? (a) Jaypee Group (b) Unitech (c) DLF (d) Ansal Plaza

Q.3. Have you purchased Jaypee Group? (a) Yes (b) No

Q.4. How are the services you get from Japypee Group? (a) Excellent (b) Better (c) Poor

Q.5. Are they provide good facility comparison to others? (a) Yes (b) No

Q.6. Are the Banks provide loan against flat easily? (a) Yes (b) No (c) Cant Say
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Q.7. Have you got good environment around the flat? (a) Yes (b) No (c) Cant Say

Q.8. According to you are you satisfy with Jaypee Group? (a) Yes (b) No

Q.9. Have you purchased another flat from any Real Estate? (a) Yes (b) No

Q.10. If yes then from which (a) Parsvnath (b) Unitech (c) DLF (d) Ansal Plaza

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