Chapter -1

Indian Real Estate Industry

Introduction
The real estate sector is one of the most globally recognized sectors. Real estate
sector comprises four sub sectors - housing, retail, hospitality, and commercial.
The growth of this sector is well complemented by the growth of the corporate
environment and the demand for office space as well as urban and semi-urban
accommodations. The construction industry ranks third among the 14 major
sectors in terms of direct, indirect and induced effects in all sectors of the
economy.

It is also expected that this sector will incur more non-resident Indian (NRI)
investments in both the short term and the long term. Bengaluru is expected to be
the most favoured property investment destination for NRIs, followed by
Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

Market Size
Real estate sector in India is expected to reach a market size of US$ US$ 1 trillion
by 2030 from US$ 120 billion in 2017 and contribute 13 per cent of the country’s
GDP by 2025. Retail, hospitality and commercial real estate are also growing
significantly, providing the much-needed infrastructure for India's growing
needs.

Sectors such as IT and ITeS, retail, consulting and e-commerce have registered
high demand for office space in recent times. Commercial office stock in India is
expected to cross 600 million square feet by 2018 end while office space leasing
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in the top eight cities is expected to cross 100 million square feet during 2018-20.
Grade-A office space absorption is expected to cross 700 million square feet by
2022, with Delhi-NCR contributing the most to this demand.

The Indian real estate sector has witnessed high growth in recent times with the
rise in demand for office as well as residential spaces. Private equity investments
in real estate are estimated to grow to US$ 100 billion by 2026 with tier 1 and 2
cities being the prime beneficiaries. Private Equity and Venture Capital
investments in the sector reached US$ 2.99 billion during January-August 2018.

According to data released by Department of Industrial Policy and Promotion

(DIPP), the construction development sector in India has received Foreign Direct
Investment (FDI) equity inflows to the tune of US$ 24.87 billion in the period
April 2000-June 2018.
Some of the major investments in this sector are as follows:
• In September 2018, Embassy Office Parks announced that it would raise
around Rs 52 billion (US$ 775.66 million) through India’s first Real Estate
Investment Trust (REIT) listing.
• New housing launches across top seven cities in India increased 50 per cent
quarter-on-quarter in April-June 2018.
• In May 2018, Blackstone Group acquired One Indiabulls in Chennai from
Indiabulls Real Estate for around Rs 900 crore (US$ 136.9 million).
• In February 2018, DLF bought 11.76 acres of land for Rs 15 billion (US$ 231.7
million) for its expansion in Gurugram, Haryana.

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Government Initiatives
The Government of India along with the governments of the respective states has
taken several initiatives to encourage the development in the sector. The Smart
City Project, where there is a plan to build 100 smart cities, is a prime opportunity
for the real estate companies. Below are some of the other major Government
Initiatives:
• Under the Pradhan Mantri Awas Yojana (PMAY) Urban, 6,028,608 houses
have been sanctioned up to September 2018.
• In February 2018, creation of National Urban Housing Fund was approved
with an outlay of Rs 60,000 crore (US$ 9.27 billion).
• Under the Pradhan Mantri Awas Yojana (PMAY) Urban 1,427,486 houses
have been sanctioned in 2017-18. In March 2018, construction of additional
3,21,567 affordable houses was sanctioned under the scheme.

Road Ahead
The Securities and Exchange Board of India (SEBI) has given its approval for the
Real Estate Investment Trust (REIT) platform which will help in allowing all
kinds of investors to invest in the Indian real estate market. It would create an
opportunity worth Rs 1.25 trillion (US$ 19.65 billion) in the Indian market over
the years. Responding to an increasingly well-informed consumer base and,
bearing in mind the aspect of globalisation, Indian real estate developers have
shifted gears and accepted fresh challenges. The most marked change has been
the shift from family owned businesses to that of professionally managed ones.
Real estate developers, in meeting the growing need for managing multiple
projects across cities, are also investing in centralised processes to source material
and organise manpower and hiring qualified professionals in areas like project
management, architecture and engineering.

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The growing flow of FDI into Indian real estate is encouraging increased
transparency. Developers, in order to attract funding, have revamped their
accounting and management systems to meet due diligence standards.

Report

Real estate sector in India is expected to reach US$ 1 trillion by 2030. By 2025,
it will contribute 13 per cent of the country’s GDP. Emergence of nuclear
families, rapid urbanisation and rising household income are likely to remain the
key drivers for growth in all spheres of real estate, including residential,
commercial and retail. Rapid urbanisation in the country is pushing the growth of
real estate. More than 70 per cent of India’s GDP will be contributed by the urban
areas by 2020.

Cross-border capital inflows to India’s real estate sector have increased 600 per
cent during 2012-17 to reach US$ 2.6 billion. In 2017, India ranked 19th out of
73 countries in attracting cross-border capital to its property market. Private
Equity and Venture Capital investments in the sector reached US$ 2.99 billion
during January-August 2018. Between 2015 and March 2018, the retail segment
in Indian realty attracted private equity investments of around Rs 5,500 crore
(US$ $853.4 million) up to March 2018.

Office space has been driven mostly by growth in ITeS/IT,BFSI, consulting and
manufacturing. Office space leasing increased by over 10 per cent to cross 20
million square feet in the first half of 2018. Warehousing space is expected to
reach 247 million square feet in 2020 and see investments of Rs 50,000 crore
(US$ 7.76 billion) during 2018-20. Grade-A office space absorption is expected
to cross 700 million square feet by 2022, with Delhi-NCR contributing the most
to this demand.

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The Government of India has been supportive to the real estate sector. In August
2015, the Union Cabinet approved 100 Smart City Projects in India. The
Government has also raised FDI limits for townships and settlements
development projects to 100 per cent. Real estate projects within the Special
Economic Zone (SEZ) are also permitted 100 per cent FDI. Government of
India’s Housing for All initiative is expected to bring US$ 1.3 trillion investments
in the housing sector by 2025. Under the Pradhan Mantri Awas Yojana (PMAY)
Urban, 6,028,608 houses have been sanctioned up to September 2018. The
scheme is expected to push affordable housing and construction in the country
and give a boost to the real estate sector. The government has also released draft
guidelines for investments by Real Estate Investment Trusts (REITs) in non-
residential segment.

(Figure1: Demand for commercial space)

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 (Figure2: Mall supply across top 8 cities)

Real Estate top players in India

1.Housing Development & Infrastructure Limited (HDIL)

(Figure 3: HDIL logo)

HDIL was ranked as India’s fastest growing real estate company by Construction
World-NICMAR in October 2007.

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HDIL has been awarded the Mumbai International Airport Slum Rehabilitation
project in October 2007.

Best developer in Commercial Infrastructure by CSI in 2010.

2. Sunteck Realty Limited (SRL)

(Figure 4 : Sunteck logo)

Sunteck Realty Ltd (SRL) is a Mumbai-based real estate development company,

catering to the ultra-luxury and luxury residential segment. SRL boasts of a city
centric development portfolio of about 25 million square feet spread across 24
projects at various stages of development and four rented assets. Of the said
portfolio, the company within a span of four years has completed 6 projects with
a developed area of about 2 million square feet comprising of residential and
commercial developments. 72 per cent of the development is residential and
balance 28 per cent commercial and retail. Some of the ultra-luxury projects in
Mumbai include the Signia Isles, Signia Pearl, and Signature Island located in
Bandra Kurla Complex region located in the centre of Mumbai.

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3.Kolte-Patil Developers Ltd

(Figure 5: Kotle Patil logo)

Founded 2 decades ago, Kolte-Patil Developers Ltd is one of the foremost real
estate companies which is headquartered in Pune. Listed on NSE and BSE Kolte-
Patil is Pune's largest developer and has completed 10 million square feet (sq. ft.)
of landmark developments in Pune and Bengaluru. It is also present in Mumbai
with some upscale redevelopment projects.

Headed by a team of visionaries and dynamic leaders, Kotle-Patil has till date-
built projects in multiple segments such as residential, commercial, retail, IT
parks and integrated townships. The long-standing mission of the company is to
dedicate itself to create spaces that blend in with the surroundings and exude
vitality and aesthetic appeal, making the spaces present-perfect and future-proof.

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4. SRS Real Infrastructure Ltd

(Figure 6: SRS logo)

SRS Real Infrastructure Ltd is a 100 per cent subsidiary of the SRS Group and is
listed under the Bombay Stock Exchange. The company is engaged in the
development and construction of over a dozen projects in the residential and
commercial genres. With a land bank of approximately 500 acres, the real estate
operations are spread across Faridabad, Greater Faridabad, Palwal, Rewari,
Kurukshetra, Panchkula and Karjat (Mumbai). The Company became a listed
entity in 1995, and in 2011, debuted on the Bombay Stock Exchange as well.

5.Puravankara Project Limited

(Figure7: Puravankara Logo)

Since its inception in 1975, Puravankara has believed that there is only one mantra
for success: Quality. This credo combined with uncompromising values,
customer-centricity, robust engineering, and transparency in business operations,

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has placed it among the ‘most preferred’ real estate brands in both residential and
commercial segments.
Puravankara has grown from strength to strength, having successfully completed
48 residential and 2 commercial projects spanning 23.54 million square feet.
Currently, it has 24.87 million square feet of projects under development, with an
additional 22.73 million square feet in projected development.

6. Prestige Group

(Figure 8: Prestige Group logo)

The Prestige Group owes its origin to Mr Razack Sattar, who envisioned a success
story waiting to take shape in the Retail Business in 1956 itself. Since its
formation in 1986, Prestige Estates Projects has grown swiftly to become one of
South India's leading Property Developers, helping shape the skyline across the
Residential, Commercial, Retail, Leisure & Hospitality sectors.

Prestige Court on K.H. Road in Bengaluru set the pace for the Group's rapid
growth which now stands at over 183 completed projects spanning a total
developed area of over 60.08 million sqft. It also has another 59 ongoing projects
comprising around 60.10 million sqft and 29 upcoming projects totalling 30.95
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million sqft, which include Apartment Enclaves, Shopping Malls and Corporate
Structures, spread across all asset classes.

Prestige Constructions, an ISO 9001:2000 certified company is the only real

estate developer in Bengaluru to have won the reputed FIABCI Award for its
software and residential facilities. Prestige was also recently awarded the Crisil
DA1 Developer Rating in recognition of the quality of their projects and the
ability to deliver completed projects in a timely manner, making them the only
Property Developer across India to have received this distinction.

7. Brigade Group

(Figure 9: Brigade Group)

Brigade Group was established in 1986, with property development as its main
focus.
Today, Brigade Group is one of South India's leading property developers with
headquarter in Bengaluru, branch offices in several cities in South India, a
representative office in Dubai and an accredited agent in the USA. Brigade have
a uniquely diverse multi-domain portfolio that covers property development,
property management services, hospitality and education. The projects extend
across several major cities in South India: Chennai, Chikmagalur, Hyderabad,
Kochi, Mangalore and Mysore.

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8. Oberoi Realty

(Figure 10: Oberoi Realty logo)

The Oberoi Realty is a real estate developer based in Mumbai, India. It was
initially incorporated in 1980 as Oberoi Constructions and later changed to its
present name. The group is led by Mr Vikas Oberoi, Chairman and Managing
Director of the company.
Over the past three decades, the company has built growth and high stature
through consistent high-design and quality parameters. It has developed over 36
projects at strategic locations across the Mumbai skyline aggregating about 6.5
million sq. ft of spaces. With another 24 million sq ft in the making, Oberoi Realty
has aggressive plans for upcoming projects in various parts of Mumbai and other
regions.

9. Sobha Limited

(Figure 11: Sobha ltd logo)

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Sobha Developer is the entrepreneurial venture of Mr PNC Menon and was
started in 1994. Through this company, Mr Menon helped shape the future of the
real estate sector in India with his eye for detail and his determination to
persistently deliver best-in-class products. The company which started as a small
enterprise 20 years ago is presently a force to reckon with in the Indian real estate
industry.

Presently, Sobha has completed 94 real estate projects and 251 contractual
projects covering about 6.06 million sq m of area. The company currently has 47
ongoing residential projects aggregating to 2.73 million sq m of developable area
and 29 ongoing contractual projects aggregating to 0.81 million sq m of area.
Sobha has made a footprint in 24 cities and 13 states across India. Some of its
prestigious corporate clients include Infosys, Taj Group, Dell, HP, Timken,
Biocon, Institute of Public Enterprises (IPE), Bosch, and Hotel Leela Ventures,
among others.

10. Hiranandani Developers

(Figure 12: Hiranandani Developers logo)

Hiranandani Developers is a part of the Hiranandani Group, which was founded
in 1978. Mr Niranjan Hiranandani and Mr Surendra Hiranandani are its present
managing directors and also the co-founders.

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With its foresight to spot the shifting societal trends, Hiranandani is today a
leading real estate group in its flagship business of construction with a pan-India
as well as international presence. The Group is known for its projects of
Hiranandani Gardens, Powai; Hiranandani Meadows, Thane; Hiranandani Estate,
Thane; and Hiranandani Business Park, Powai and Thane. Today, Hiranandani
has a dedicated and experienced team of over 1,600 people employed in its
diverse community.

JSW Energy is one of the most efficient power generation companies in India.
Their plants are the industry benchmark for the high plant load factor achieved,
which is a measure of efficient capacity utilisation.

11. Omaxe

(Figure 13: Omaxe Reality logo)

Omaxe is one of India's leading real estate development companies. It was started
in 1987 by Mr Rohtas Goel. In 1989, the Omaxe Builders Private Ltd was founded
to undertake construction and contracting business.
Over the years, Omaxe has made a mark with some landmark projects and
engineering marvels in metros. Seeing an opportunity in tier II and III cities, the
company made a conscious decision to venture into states such as Uttar Pradesh,
Madhya Pradesh, Punjab, Haryana, Uttarakhand and Rajasthan, among others.

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Presently, Omaxe has spread its footprints in nine states across 30 cities in India.
The company has already delivered more than 90 million sq. ft and is currently
executing 42 real estate projects, among which are 16 integrated townships, two
hi-tech townships, 14 group housing projects, 10 shopping malls and commercial
complexes and hotels.

12. Jaypee Group

(Figure 15: Jaypee Group logo)

The Jaypee Group is a Rs 20,000 crore (US$ 3.18 billion) well diversified
infrastructural industrial conglomerate in India. Over the decades it has
maintained its salience with leadership in its chosen line of businesses.

Transforming challenges into opportunities has been the hallmark of the Jaypee
Group, ever since its inception five decades ago. The Group is a diversified
infrastructure conglomerate with business interests in engineering &
construction, cement, power, real estate, expressways, fertilizer, hospitality,
healthcare, sports, information technology and education (not-for-profit).

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13. Supertech Limited

(Figure 16: Supertech ltd logo)

Supertech Limited was founded in 1988 in the National Capital Region (NCR)
by Mr RK Arora. The company develops projects in different verticals of real
estate such as residential, townships, commercial, retail, office spaces and
hospitality. It has a major presence in Uttarakhand (Uttar Pradesh) and Haryana
in the north, and is constructing a project in Bengaluru in the south of the country.

Supertech is the first Indian real estate developer to introduce the precast
technology, which is a step further in construction. With the use of this
technology, a hindrance-free construction can be carried out in any season saving
up to 64 per cent of time as compared to the construction time of a brick house.

Supertech has already converted more than 33 million sq. ft of residential and
commercial entities. With 40 ongoing projects worth Rs 14,000 crore (US$ 2.38
billion) in hand, the company has over 75 million sq. ft under construction with
projects such as North Eye and Supernova in Noida, Uttar Pradesh.

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14. Unitech Ltd

(Figure 17: Unitech logo)

Established in 1972 by a group of technocrats, Unitech Ltd is one of India’s
leading real estate players. It began as a consultancy firm for soil and foundation
engineering and has grown to have the most diversified product mix in real estate,
comprising of world-class commercial complexes, IT/ITes parks, SEZs,
integrated residential developments, schools, hotels, malls, golf courses and
amusement parks.

So far, it has built more than 100 residential projects. Nirvana Country in
Gurgaon, for one, is an integrated development complete with villas, apartments,
offices, retail spaces, schools and clubs. The company has also developed world
class malls such as Metro Walk in Rohini, The Great India Place in Noida, and
Central in Gurgaon, all of which have been hugely successful. Currently, 4.5
million square feet of retail space is under construction in cities like Mumbai,
Kolkata, Bengaluru, Hyderabad, Chandigarh, Dehradun, Amritsar, Bhopal,
Mysore, Mangalore, Lucknow, Kochi, Trivandrum and Siliguri.

The recent launches have been Gardens Galleria in Bengaluru, Noida and Mohali,
Great India Place in Bhopal and Dehradun, and Downtown in Mohali.

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15. Godrej Properties

(Figure 18: Godrej Properties logo)

Established in 1990, Godrej Properties is one of the leading real estate
development companies in India. The Mumbai-based organisation is the first real
estate company to receive ISO certification. With projects that span across the
country, the company's upcoming development covers 83 million square feet (sq.
ft). To create landmark structures, Godrej Properties collaborates with
outstanding associates and reputed names. The company aims to deliver superior
value to all stakeholders through extraordinary and imaginative spaces created
out of deep customer focus and insight.

Godrej Properties’ portfolio is diversified, spanning 12 cities across India and

containing residential, commercial and township projects. The company has
featured among the top 10 construction companies in India for the past four years
in a study by the journal ‘Construction World’. Planet Godrej, one of the
company’s premium residential developments in Mumbai, was declared the ‘Best
Residential in Western India’ at the CNBC AWAAZ CRISIL CREDAI Real
Estate Awards in 2009 and 2010. The company also received a seven-star rating
by CRISIL in 2010.

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16. DLF Ltd

(Figure 19: DLF logo)

DLF has over 60 years of track record of sustained growth, customer satisfaction,
and innovation. The company has 314 msf of planned projects with 52 msf of
projects under construction.

DLF's primary business is development of residential, commercial and retail

properties. The company has a unique business model with earnings arising from
development and rentals. Its exposure across businesses, segments and
geographies, mitigates any down-cycles in the market. From developing 22 major
colonies in Delhi, DLF is now present across 15 states-24 cities in India.

DLF is credited with introducing and pioneering the revolutionary concept of

developing commercial complexes in the vicinity of residential areas. DLF has
successfully launched commercial complexes and is in the process of marking its
presence across various locations in India.

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 Chapter -2

Agrasain Spaces LLP

Agrasain Spaces is a Limited Liability Partnership Firm incorporated by partners
Sh. Narender Aggarwal, Sh. Mukesh Kumar Aggarwal, Sh. Parmod Kumar and
Sh. Himanshu Gupta to develop and setting up an affordable housing project at
Opp. Industrial Model Town (IMT), Sector-70, Faridabad, Haryana spread over
total land measuring 10.63 acres, out of which proposed project over land 5 acres
& total constructible area 5,91,950 sq. ft., such land has already been acquired.

2.1 Goal of the company

➢ Agrasain Spaces LLP aims to provide high standard of quality in
residential & commercial projects with a moto to contribute to an initiative
taken by the Govt. of India i.e. "HOUSING FOR ALL BY 2022".
➢ Under the project ‘Aagman’, the company has taken the initiate to
revolutionise the concept of affordable housing by building luxurious and
high standard homes at pocket friendly prices.
➢ Keeping the goal of “housing for all in mind” and understanding their
customers hearts' Agrasain Spaces LLP, owned by the main promoters of
M/s Shivalik Prints Ltd, RPS Green Valley & Omaxe World Street,
Faridabad, introduces first- of –its- kind SUBVENTION SCHEME
(25:75) in the history of affordable housing for those who are seeking
budget homes at pocket friendly prices.
➢ To provide possession of the flats under project ‘Aagman’ by the end of
the 2018.

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2.2 Revolutionary Scheme

Agrasain Spaces LLP accomplished the mission through SUBVENTION

SCHEME under which a home seeker with minimum budget can own its dream
home. The buyer can book their own home @ just 5% under SUBVENTION
SCHEME and pay 20% at the time of allotment and pay no EMI till offer of
possession. So, when such a convenient SUBVENTION SCHEME is there who
can stop you from owning your own home. Under SUBVENTION SCHEME
Agrasain Spaces LLP invites applications from the prospective buyers of
apartments/flats in its Affordable Group Housing project (AAGMAN) with
possible modern facilities on an area measuring 5.35 acres in Sector-70,
Faridabad.

2.3 Founders of Agrasain Spaces LLP

➢ Mr. Narender Aggarwal

Unfathomable Experience of over 30 years, Managing Director of the M/s

Shivalik Prints Limited, Immeasurable Technical Expertise, Remarkable
Acumen in Business Matters

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GIST OF HIS CARRIER

Sno. Year of work Journey

1. 1979 – 1981 Associated with the family business of Steel
Forgings.
2. 1981 – 1998 New family business setup for the manufacturing of
GI wire/ strips for cable industry. Handled the entire
operations and marketing of the company as Director.
3. 1981 – 2012 Start-up of PU injected footwear manufacturing and
exports. Handled exclusively the entire business as
Managing Director of the company till 2007.
Company is working still under the supervision of Mr.
Narendra Aggarwal.
4. 2007 – 2018 Joined as Managing Director of M/s Shivalik Prints
after the family division. Company has observed
vertical growth in the revenue in addition to the
diversification to garment export.
(Table 1: Narendra Aggarwal carrier)

➢ Mr. Mukesh Aggarwal

Unfathomable Experience of over 28 years, Managing Director of the M/s SPL

Industries Limited, Immeasurable Technical Expertise, Remarkable Acumen in
Business Matters.

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GIST OF HIS CARRIER

Sno. Year of Work Journey

1. 1986-2018 Associated with the family business of Steel
Forgings, GI wire/strips for cable industry, fabric
and Garments for Export. Handled the entire
operations and marketing of the company as
Director/Managing Director.
(Table 2: Mukesh Aggarwal Carrier)

➢ Mr. Parmod Kumar

Mr. Parmod Kumar entered into the Real Estate sector in the year 1980. A
Shopping Complex named Sushma Palace, at Ajronda Chowk, Faridabad was
developed by him in the year 1997-98, where 25 shops were built & sold.

The concept of independent floors was introduced by Sh. Parmod Kumar in the
year 1994-95, he built up so many units of spring field colony in his proprietary
concern M/s Modern Housing Company.

The first shopping complex in Faridabad named as Crown Plaza also brought in
by Sh. Parmod Kumar with his partners in the year 2000-2003. This shopping

23
complex prove0d to be very successful. It is fully occupied & world famous
brands of shopping outlets/showrooms exist here.

He has been the Director/Partner of various concerns of RPS Group. He led this
group actively. He constructed group housing projects in M/s RPS Associate at
corporate level in the Faridabad, where 628 units of flats, 228 units of villas, 63
units of EWS Flats, 21 units of EWS plots, 83 units of Shops were successfully
built & handed over to the people at large who are residing their comfortably.

In M/s RPS Enterprise the same group, he developed another project namely
Paras apartments at Sector 30-31, Faridabad where about 80 units of flats built up
& sold. This apartment is also fully occupied. With the advent of the above, Sh.
Parmod Kumar has become a renowned figure in the field of real estate not only
in Faridabad but also in entire national capital region.

He has brought revolution in the real estate sector in the entire region. After
completing the various commercial & residential real estate projects successfully,
Sh. Parmod Kumar (25% share) in partnership with M/s Robust Buildwell Pvt
Ltd, a subsidiary of M/s Omaxe Limited is in the process of implementation of
Omaxe City Center over an area 49.07 acres in sector-79, Faridabad. In this
project, license on land measuring 10.65 acres has already been allotted on which
143 showrooms, 114 Shops, and 164 residential flats is proposed under mixed
land use scheme and two license measuring land 11.49 acres & 15.51 acres have
already been applied.

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➢ Mr. Himanshu Gupta

Himanshu Gupta is young & dynamic chap of 23 years. He is MSc from

University of Leeds in International Business & is a partner in the firm. He is well
versed with the in/outs of the business. He is actively involved in the
implementation of the project under the guidance of partner Sh. Parmod Kumar.
His technical qualification will definitely be instrumental in growth of the
business of the firm.

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Project- ‘Aagman’

Introduction

Project area 5.35 acres (FAR to be availed for 5 acres) comprising 720 number
of apartments (3 BHK, 2 BHK and 1 BHK with study of different sizes). Out of
which 5 % flats (36) are reserved for management quota and 95 % flats (684) are
for general public.

Product Portfolio

➢ 1 BHK + Study Residential Flats

(Figure 20: 1 BHK Flat Blueprint)

Floor Plan

Categories Carpet Area (sq. ft) Balcony (sq. Super Area (sq. ft)
ft)
Type B1 424.67 100 680
Type B2 428.27 100 685
(Table 1: 1 BHK Floor Plan)

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Investment Plan

Category Price Earnest money Amount to be Amount to be

with paid at the time paid in 6
application of allotment half-early
(25% of total instalment
cost) (75% of the cost)
Type B1 17,48,680/- 80,000/- 3,57,170/- 13,11,510/-
Type B2 17,63,120/- 80,000/- 3,60,780/- 13,22,340/-
(Table 2: 1BHK Investment Plan)

➢ 2 BHK Residential Flats

(Figure 21: 2 BHK Flat Blueprint)

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Floor Plan

Category Carpet Area (sq. ft) Balcony Super Area (sq. ft)
Area (sq. ft)
Type A1 529.33 63.61 790
Type B 525.28 100 820

(Table 3: 2 BHK Floor Plan)

Investment Plan

Category Price Earnest money Amount to be Amount to be

with paid at the time paid in 6
application of allotment half-early
(25% of total instalment
cost) (75% of the cost)
Type A1 21,49,125/- 1,00,000/- 4,37,281/- 16,11,844/-
Type B 21,51,120/- 1,00,000/- 4,37,780/- 16,13,340/-

(Table 4: 2 BHK Investment Plan)

Customization Scheme

• Under this scheme an investor can get the its 2BHK constructed
on the with carpet area 629 sq. ft instead of carpet area of
529.33 sq. ft
• This scheme involves an additional payment of 4,00,000/- on the
2 BHK residential flat price.

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➢ 3 BHK Residential Flat

(Figure 22: 3 BHK Flat Blueprint)

Floor Plan

Category Carpet Area (sq. ft) Balcony Super Area (sq. ft)
Area (sq. ft)
Type A 629 100 960
(Table 5: 3BHK Floor Plan)

Investment Plan

Category Price Earnest money Amount to be Amount to be

with paid at the time paid in 6
application of allotment half-early
(25% of total instalment
cost) (75% of the cost)
Type A 25,67,440/- 1,25,000/- 5,16,860/- 19,25,580/-
(Table 6: 3BHK Investment Plan)

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 Facilities Offered

Community Facilities:
One Community Hall double story having total area 720 sq. metre. (7750 sq. ft.)
and one double story Anganwadi – cum – crèche of 380 sq. metre. (4090 sq. ft.)
against minimum required area of 2000 sq. ft. as provided in the policy by the
Govt. The areas under above community facilities have been increased with a
view to accommodate additional facilities.

Additional Facilities:
1. Multipurpose court for badminton/ lawn tennis/basketball etc.
2. Indoor games room with screen and projector facility.
3. Gym and Yoga room.
4. Kids pool.
5. Green area with slides & swings for children.

Sample Flat

(Figure:21 Ready to move 2BHK Flat)

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 Chapter-3

Research Methodology

Research simply means a search for facts – answers to questions and solution to
problems. It seeks to find explanations to unexplained phenomena, to clarify the
doubtful propositions and to correct the misconceived facts. Research is the
systematic activity to achieve the truth. Research includes the procedure of
collecting data, analysing the data and finding the conclusion or truth.

The purpose of research is to seek answers to problems through the application

of scientific methodology, which guarantees that the information is reliable and
unbiased.

3.1 Scope

All items in any field of enquiry constitute a ‘Universe’ or ‘Population’. A

complete enumeration of all items in the population is known as a census enquiry.

Since it is not possible to conduct research on all the customers of the ‘Agrasain
Spaces’ a sample of 50 customers was used to conduct the research.

3.1.1 Sampling Design

Sample design is definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting
items for the sample.

31
3.2 Objective
➢ To identify the real requirement of customers when finding homes for
residential purpose.
➢ To identify the main areas of investment in real estate.
➢ To identify the factors affecting value of real estate.
➢ To factors determining the demand for residential real estate.
➢ To identify the most preferable sector of real estate from investment point of
view.

3.3 Research Technique

Selection of the right research technique(s) is one of the key factors deciding the
methodological rationale of the research and subsequent analysis. Each of the
individual techniques used to obtain data is linked to specific analysis and
interpretation processes. Not every technique can be used to transpose the results
obtained directly onto the pool of research subjects. A research technique and,
subsequently, the research sample, should be defined with the research objectives
firmly in mind. Techniques used in the research are as follows:
➢ Interview
➢ Surveys
➢ Observation
➢ Internet
➢ Questionnaire

3.4 Sampling Techniques

There are lot of sampling techniques which are grouped into two categories as

• Probability Sampling

• Non- Probability Sampling

32
The difference lies between the above two is weather the sample selection is
based on randomization or not. With randomization, every element gets equal
chance to be picked up and to be part of sample for study.

Probability Sampling

This Sampling technique uses randomization to make sure that every element of
the population gets an equal chance to be part of the selected sample. It’s
alternatively known as random sampling.

Simple Random Sampling: Every element has an equal chance of getting

selected to be the part sample. It is used when we don’t have any kind of prior
information about the target population.

Stratified Sampling: This technique divides the elements of the population into
small subgroups (strata) based on the similarity in such a way that the elements
within the group are homogeneous and heterogeneous among the other subgroups
formed. And then the elements are randomly selected from each of these strata.
We need to have prior information about the population to create subgroups.

Cluster Sampling: Our entire population is divided into clusters or sections and
then the clusters are randomly selected. All the elements of the cluster are used
for sampling. Clusters are identified using details such as age, sex, location etc

33
The sampling method adopted in the research is the ‘Stratified Sampling
Method’. Under this method population is divided into two sub groups on the
basis of purpose:

➢ Residential
➢ Non-Residential

3.5 Sample Size

The number of items selected from the universe to present the universe is called
the size of the sample. It wasn’t feasible to cover all the customers of Agrasain
Spaces LLP. So, for the purpose of our study, a total of 50 respondents were
approached out of which only 35 respondents were buying flats for the purpose
of residential use and the rest 15 were making purchase for the resale and renting
purpose.

3.6 Limitations

➢ Small sample size

The sample size was only 50 respondents which a very small size to base a
research and give conclusion about the whole sector. These respondents are
not sufficient enough to base our conclusion for the group of customers.

➢ Time bound research

The research was conducted in a short span of time. The responses of the
respondents may be affected by some particular situation prevailing at
that particular time. If the time duration would have been long it would have
given the general idea or perception of the customers.

34
➢ Might get biased response
As discussed earlier that the sample size was small also considering that the
interview was conducted in a short span of time, there is high probability that
the respondents might have given biased responses.

➢ Similar income category

Almost all the respondents belonged to the similar income group. This may
have resulted in a bias in the research as the people belonging to the similar
income group share same needs, wants and mindset resulting in a common
opinion of the people belonging to a particular income group.

➢ Limitation of language
Since all the questionnaires were prepared in English, there is high
probability that some respondents might not be comfortable with the
language. Resulting to which respondents might have completed the
questionnaire not out of understanding but out of guess or random choice.

➢ Personal mistakes
Since all the tasks starting from the preparation of the questionnaire to the
interpretation of the results of the questionnaire are performed manually.
Therefore, there are high chances that there might some errors in the
preparation of the questionnaires as well as interpretation of the results of
the questionnaire might involve some personal bias.

35
 Chapter-6

Data Analysis & Interpretation

Q1. What is the location of your current residence?

Preference Frequency (Out of 50) Percentage

Delhi 10 20%
Gurugram 15 30%
Faridabad 20 40%
Ghaziabad 5 10%
TOTAL 50 100%

LOCATION OF THE CUSTOMER

Ghaziabad, 10%
Delhi, 20%

Faridabad, 40%

Gurugram, 30%

The respondents covered in the above analysis belongs to the Delhi & Delhi NCR
region. The majority percentage of the respondents belongs to Faridabad i.e. 40
%. Followed by Gurugram i.e. 15 respondents were from Gurugram (25%).10
respondents were from Delhi (20%) and the least number of respondents were
from Ghaziabad i.e. only 5 people out of 50.

36
Q2. What is your average annual income?

Preference Frequency (Out of 50) Percentage

5-10 lakh 3 6%
10-15 lakh 7 14%
15-20 lakh 30 60%
20 lakh & above 10 20%
TOTAL 50 100%

Average Annual Income level

20 lakh & above

20% 5-10 lakh 10-15 lakh
6% 14%

15-20 lakh
60%

5-10 lakh 10-15 lakh 15-20 lakh 20 lakh & above

The above analysis shows that the people covered under the survey mostly
included people from the income group of 15-20 lakhs i.e.60%, followed by
people with income above 20 lakh- 20% and the remaining were in the category
of 10 to 15 lakh and 5 to 10 lakhs consisting of 14% and 6% respectively.

37
Q3. What is your purpose of buying real estate property?

Preference Frequency (Out of 50) Percentage

Residential 35 70%
Commercial 15 30%
TOTAL 50 100%

REAL ESTATE INVESTMENT PURPOSE

Commercial
30%

Residential
70%

The above analysis show that 70% of the respondents i.e. 35 people out of 50
preferred to buy the flats for the residential purpose and rest 15 people i.e. 30%
people considered the flats as a good investment option. And intended to rent,
lease or mortgage the property for earning revenue. The huge difference between
the perspective of people can be due to the lack of knowledge about the real estate
or might be people preferred to satisfy their personal needs above any other needs.

38
Q4. What is the most important factor when buying/searching a
property?

Preference Frequency (Out of 50) Percentage

Price 19 38%
Location 11 22%
Bank Rate 12 24%
Government Policies 8 16%
TOTAL 50 100%

Determinants of Real Estate Investment decision

16%
38%
24%

22%

Price Location Bank Rate Govt. Policies

The major factor affecting the real estate buying decision is the price of the
property.19 respondents out of 50 considered the price as the most important
aspect for buying a real estate property. Followed by bank rates i.e. 12
respondents out of 50 opted for bank loan to be a determing factor in the property
buying decision as the majority of people depend on loans for buying a property.
Other important factors include location of the real estate property and
government policies in the particular region.

39
Q5. Do you think that India has a better future in real estate
industry?

Preference Frequency (Out of 50) Percentage

Yes 35 70%
No 10 20%
Neutral 5 10%
TOTAL 50 100%

FUTURE OF REAL ESTATE IN INDIA

Neutral
10%

No
20%

Yes
No
Neutral

Yes
70%

70% Respondents feel Indian real estate industry has a bright future ahead and
property demand will rise in coming days. This may be due variety of factors
and major factor that can be taken into consideration is population, due to
rapidly growing population demand for residential as well as commercial
property is rising at a steep rate. Whereas as 20% of the respondents i.e. 10 out
of 50 people feel other way round.11% respondents were neutral about the issue
and said that situation will remain same without any major change.

40
Q6. What is the preferred mode for purchase of the real estate
property?

Preference Frequency (Out of 50) Percentage

Bank Loan 36 72%

Cash Payment 14 28%

TOTAL 50 100%

Mode of Payment

Cash Payment
28%

Bank Loan
72%

Bank Loan Cash Payment

36 out of 50 people i.e. 72% respondents preferred bank loan for buying a real
estate property as most the people don’t have a sufficient cash in hand for buying
a real estate property in India above that reduction in the in the interest rate of the
bank loans has made it convenient to buying a property on loan. 28% of
respondents choose cash payment as the preferable mode of payment. This also
shows the economic disparity in India.

41
Q7. What is your preferred category of flat?

Preference Frequency (Out of 50) Percentage

1 BHK 10 20%
2 BHK 26 52%
3 BHK 14 28%
TOTAL 50 100%

FLAT CATEGORY

1 BHK
3 BHK 20%
28%

1 BHK
2 BHK
3 BHK

2 BHK
52%

The above table shows that 10 out of 50 people i.e. 20 % respondents preferred
buying 1 BHK flat category. Majority of the respondents 26 people out of 50 i.e.
52% people opted for 2BHK flat category. This may be due to the value for
money that the 2 BHK category offers and above that increasing trends of nuclear
family in India make it the most suitable option.14 out of 50 people i.e. 28%
respondents prefer to buy 3 BHK.

42
Q8. Do you find customisation scheme worth investing?

Preference Frequency (Out of 50) Percentage

Yes 22 44%
No 28 56%
TOTAL 50 100%

Preference for customisation scheme

Yes
44%
NO
56%

Yes NO

28 out of 50 people preferred i.e. 56% respondents had a negative view towards
the customisation scheme offered for 2BHK flat in which 2 BHK owner can get
it constructed in the 3BHK land space by paying additional Rs.4,00,000/- only.
This is might be due to the value for money attached to the non-customised 2
BHK flats. Hence, majority of people don’t find worth paying Rs.4,00,000/-.
22 people out of 50 i.e. 44% respondents considered customisation option as a
worthy offer to be availed by paying Rs.4,00,000/- only.

43
Q9. What is the major attraction of project ‘Aagman’?

Preference Frequency (Out of 50) Percentage

Price 26 52%
Facilities Offered 2 4%
Subvention Scheme 14 28%
Nil 8 16%
TOTAL 50 100%

MAJOR ATTRACTION OF PROJECT 'AAGMAN'

Nil
16%

Price
Subvention Scheme 52%
28%

Facilities Offered
4%

The above data depict that 26 out of 50 people i.e. 52% respondents got
attracted to the project ‘aagman’ as it offered the luxurious homes at pocket
friendly prices. The major criteria for the success of the project is the price point
at which flats are offered. The 2nd key factor that attracted 28% respondents is
the subvention scheme with allowed people to get possession by paying only
25% value of the property.16% respondents didn’t find anything attractive in
the project ‘Aagman’.

44
Q10.What is the expected time lag between allotment and
possession?

Preference Frequency (Out of 50) Percentage

3 Years 10 20%
4 Years 27 54%
5 Years & Above 13 26%
TOTAL 50 100%

Expected Time Lag Between Possession &

Allotment
20%

26%

54%

3 Years 4 Years 5 Years & Above

The above chart clearly depicts that 54% respondents i.e. 27 people out of 50
expected to get possession after 4years from the year of allotment. Whereas
26% respondents i.e. 13 people out of 50 felt the possession with take at least 5
years or above to be finalised. Contrary to this 10 out of 50 people i.e. 20%
respondents have faith in the project aagman and are confident that they will
receive possession in 3 years from the date of allotment.

45
Q11.Do you know about the documents you should look before
buying house?

Preference Frequency (Out of 50) Percentage

Yes 20 40%

No 30 60%

TOTAL 50 100%

Awareness about documents required for buying

property

Yes
40%
No
60%

Yes No

The above graph clearly depicts that 60% people i.e. 30 out of 50 people are
unaware of the documents that a buyer should look for before considering a
buying decision for a real estate property. This is due to the lack of awareness
and knowledge about real estate among people of India.40% of people are
aware about the documents to be looked before buying a property but still can’t
be said that how much awareness or knowledge people are actually having.

46
Q12.What source of information do you prefer while
buying/searching for a property?

Preference Frequency (Out of 50) Percentage

TV, Radio & Other 11 22%
Media
Broker 20 40%
Personal Reference 19 38%
TOTAL 50 100%

Reliable Source of Information

22%

38%

40%

TV,Radio & Other Media Broker Personal Reference

The above data depicts that the majority of people i.e. 20 out of 50 people are
dependent the information provided by broker for a purchase decision about a
property. Followed by personal reference i.e. 38% of the respondents trust their
personal contacts, family or friends for taking a decision regarding buying a
property and rest 22% people rely of the TV & Radio advertisements, Print
Media and Internet for making up their mind regarding buying a property.

47
Q13.Do you check legal status of the construction when you
search/buy property?

Preference Frequency (Out of 50) Percentage

Yes 8 16%

No 42 84%

TOTAL 50 100%

Awareness about legal status of construction

Yes
16%

No
84%

Yes No

The above chart clearly depicts that 84% respondents i.e. 42 out of 50 people are
ignorant about the legal status of construction when buying a property. Contrary
to this only 16% respondents are aware about the legal status of the property they
are buying. This is due to the lack of execution of stringent legal policies in India
in real estate sector. Hence, majority of people don’t pay serious attention to the
legal status of property when making a purchase decision in real estate sector.

48
Q14.Do you know about the RERA & its importance?

Preference Frequency (Out of 50) Percentage

Yes 10 20%
No 40 80%
TOTAL 50 100%

Awareness about RERA

Yes
20%

No…

Yes No

The above data clearly depicts that 10 out of 50 people i.e. 20% of the respondents
are unaware of the ‘Real Estate Regulatory Authority’(RERA). Only 20% of the
respondents were aware about the RERA and its importance. This data depicts
that their lack of awareness about the regulatory among majority of the people
due to which many people fall victims to frauds and scams. Hence, many people
fear to make investment in real estate.

49
Q15.Do you own a house or renting?

Preference Frequency (out of 50) Percentage

Private House 14 28%
Rented House 36 72%
TOTAL 50 100%

HOUSE OWNED OR RENTED

Rented
28%

Private
72%

The above data shows that 14 people out of 50 i.e. 28% respondents were living
in a house owned by them.36 people out of 50 i.e. 72% respondents were living
in a rented house and prefer to invest in the project ‘Aagman’ for buying a flat
for residential purpose. Hence, affordable housing project is able to attract new
customers to the market. It can also be interpreted that government agenda of
‘HOUSING FOR ALL BY 2022’ can be achieved with rapid pace if more such
projects are introduced in future.

50
 Chapter-5

Suggestions & Recommendations

➢ First and foremost, the database generated through the project should be put
to effective use through continuous follow-ups to the potential customers.
A follow-up should be made on the industry potential as a whole as well.
➢ Real estate companies have to inject money to start new projects.
Companies have to formulate efficient policies to skip foreclosures.
➢ Investors have high hopes from the real estate industry, even though they
are aware about the delays in the projects due to recession, still they are
positive about the future prospect of the real estate industry. So real estate
companies should place effort on timely completion of projects.
➢ Customers should go through all the terms and conditions of the project
developed.
➢ Company should provide information according to people’s need and
necessity. And for that they can open daily polling on their web portal.
➢ Customers should check all the legal and technical documents and not only
the marketing details of the builders/project, before buying or searching
house.
➢ Company should not always try to attract the new customers only, but
should also take feedbacks from existing once, and try to remove
their problems and learn from their experience.
➢ Company should make more contact with contractors and Architects to tap
more builders.
➢ Customer should be aware of the government’s policy related to ‘Real
Estate’.

51
 Conclusion
➢ From the above study we can infer that the majority of people in India invest
in real estate for residential purpose only but with increasing opportunities
in real estate people are looking for real estate as an investment option also.
➢ Real estate is a favoured investment option due to various efforts that are
being made by the government.
➢ Government Policies are another major reason for the increase of
investment in the real estate sector.
➢ One of the most recent initiative is the introduction of
‘HOUSING FOR ALL BY 2022’ by the government has increased the
investment in Indian real estate industry for residential purpose.
➢ Recent fall in the rate of home loans is also a factor causing rapid rise in
residential real estate properties.
➢ The final conclusion that can be given from the above study is that there is
great scope of the real estate sector. It will grow in the near future and will
be one of the major reasons for the growth for the Indian economy.
➢ Majority of the people are still unaware of the documents which they should
look for before going to buying a house.
➢ Thus, people need to be more aware of all the documents, the total legalities,
and collect as much as information from the builders, and then only they
can do their investment with a free mind

52
 Bibliography

Books

➢ The ABCs of Real Estate Investing by ‘Ken McElroy’

➢ RERA check lists for buyers/builders/real estate agents by ‘CA
Srinivasan Anand’

Magazines and Newspapers

➢ Economic Times
➢ Mint
➢ Business World

Websites

www.magicbricks.com

www.realestatencr.com

www.estatedeveloper.com

www.agrasainspaces.com

www.indianrealretailestate.com

www.99acres.com

www.quikrhomes.com

www.propertywala.com

53
 Annexure

Questionnaire

Q1. What is the location of your current residence?

o Faridabad
o Gurugram
o Ghaziabad
o Delhi

Q2. What is your average annual income?

o 5-10 lakh
o 10-15 lakh
o 15-20 lakh
o 20 lakh & above

Q3. What is your purpose of buying real estate property?

o Residential
o Commercial

Q4. What is the most important factor when considering real estate investment
option?
o Price
o Location
o Bank rate
o Govt. Policies

Q5. Do you think that India has a better future in real estate industry?
o Yes
o No
o Neutral

54
Q6. What is your preferred method for purchase of the real estate property?
o Bank Loan
o Cash Payment

Q7. What is your preferred category of flat?

o 1 BHK
o 2 BHK
o 3 BHK

Q8. Do you find customisation scheme worth investing?

o Yes
o No

Q9. What is the major attraction of project ‘Aagman’?

o Price
o Facilities offered
o Subvention scheme
o Nil

Q10.What is the expected time lag between allotment and possession?

o 3 years
o 4 years
o 5 years & above

Q11.Do you know about the documents you should look before buying house?
o Yes
o No

55
Q12.What source of information do you prefer while buying/searching for a
property?
o TV, Radio, Internet & Other Media
o Broker
o Personal Reference

Q13.Do you check legal status of the construction when you search/buy property?
o Yes
o No

Q14.Do you know about the RERA & its importance?

o Yes
o No

Q15.Do you own a house or renting?

o Private house
o Rented house

56