1122. high end properties in noida & greater noida – a comparative study  [supertech] (1)
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1122. high end properties in noida & greater noida – a comparative study [supertech] (1)

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  • 1. PROJECT REPORT ONHigh End Properties in Noida & Greater Noida – A Comparative Study COMPLETED in “Supertech” By VIKAS YADAVID NO. D1012 FW ISBE-A10252-(NOI-IA-NA-3028)
  • 2. INDIAN INSTITUTE OF PLANNING AND MANAGEMENT ACKNOWLEDGEMENTI extend my deep gratitude to whose momentousguidance laid the very foundation of this project study.I am also grateful to the staff member and all the employees of thecompany, for helping me access information from the personneldepartment of this organization. I also thank the executives of thecompany for their contribution and participation.Finally, I also offer my special thanks to my family members, friend’scolleagues who have supported me throughout and helped me to completethis project work. (VIKAS YADAV) 2
  • 3. 3
  • 4. PREFACEThe success of any business entity solely depends on how effectively does itutilizes its optimum resources and how soon does it make arrangements for theremoval of the customer’s grievances. Moreover, the company should always beready to make necessary changes according to the requirement in order toattract more customers so as to maintain a substantial growth in the market. Thetopic given to me was: “High End Properties in Noida & Greater Noida – A Comparative Study”I have tried to put my best efforts to complete this task on the basis of skill that Ihave achieved during my studies in the institute.I have tried to put my maximum effort to get the accurate statistical data. If thereis any error or any mistake in collecting the data, please ignore it. 4
  • 5. TABLE OF CONTENTSChapter No. SubjectCh. # 1.0 Executive Summary……………Ch. # 2.0 Research Methodology………… 1.1 Primary Objective(s)…… 1.2 Hypothesis……………… 1.3 Research Design………… 1.4 Sample Design………… 1.5 Scope of the Study……… 1.6 Limitations………………Ch. # 3.0 Critical Review of Literature…Ch. # 4.0 Company Profile ……………… 4.1 Industry Profile………… 4.2 SWOT Analysis…………Ch. # 5.0 Data…………………………… 5.1 Collection……………… 5.2 Primary Data…………… 5.3 Secondary Data….……… 5
  • 6. Ch. # 6.0 Findings & Analysis……………Ch. # 7.0 Recommendations……………Ch. # 8.0 References……………………Ch. # 9.0 Annexure………………………Ch. # 10.0 Case Study …………………… 6
  • 7. Chapter 1.0Executive Summary 7
  • 8. Chapter 1.0 – Executive SummaryThis research work is related to comparative analysis of the availableHigh End Properties (1) in Noida and Greater Noida and the customer’sperception about investing in these High End properties.This research has Two Key Objectives: A) To locate the availability of the High End Properties in the proximity of Noida and Greater Noida. It also covers the details about the project- specific offerings of each real estate developer specifying the below mentioned details. 1) location of the project 2) basic price offered 3) amenities offered 4) the various kinds of properties available 5) the super area(2) and the loading rate (3) 6) the current status of the project 7) the current occupancy status 8) the secondary market prices(4) B) To find out the perception of the consumer when it goes out in thereal estate market to purchase/invest in Real Estate and what are thecritical issues/points which the consumers look into before investing. 8
  • 9. The major findings were that the High End residential properties gainingas an attractive mode of investment of upper and upper-middle classconsumer leading to increasing demand. With the gradual increase in thespending capability of the consumer due to the double digit growth inIndia’s GDP and shifting of Major IT companies, domestic companies,export houses and offices of MNC’s on the Noida express way popularlyknown as TAJ expressway and Greater Noida; Growth has beenwitnessed in the demand of High End Properties by the upper class forinvestment along with other residential projects targeting the upper-middle class for residential use.Also despite of lakhs of rupees being spent by the Developers on theincreasing the brand consciousness, there are other factors also which theconsumers look into before investing.During the course of the research work, I was provided with theopportunity to interact with the developers and also with the people whogave me their valuable responses in the questionnaire provided. Theexperience gathered during this research, gave me the basicunderstanding of the working methodology of the high end real estate (5)market in Subway Noida Greater Noida and also it helped me tounderstand various consumer perceptions about the real estateinvestment. It gave me an insight of the physic of a customer that what allimportant factors are to be considered when investing in real estate. 9
  • 10. (1) High-End properties: - The high end properties are those properties that cater tothe needs of specific upper middle and upper class. It includes luxury and ultra luxuryapartments, penthouses and independent villas offered with world class utilities.(2) Super area: - Super area includes all the spaces in the building i.e. Carpet area,common areas (staircase, landings, lobby, entrance, fire escape etc.) and wallthickness. Depending upon the structure of the building, Super area varies.(3) Loading Rate: it’s the area of the building utilized in the basic construction of thestructure like the pillars and the wall thickness etc.(4) Secondary Market Prices: They are the prices at which the first buyer sells thesame property to another buyer.(5) Subway Noida: It is the region that is located alongside the Noida Greater NoidaExpressway 10
  • 11. Chapter 2.0Research Methodology 11
  • 12. Chapter 2.0 - Research Methodology2.1 ObjectivesPrimary objective is to find out consumer perception about investing inreal estate in Noida and greater Noida with respect to Supertech.1. To study in detail, the projects offered by Supertech Limited which areunder various stages of execution in Noida and Greater Noida.2. Study of The Competitors with respect to- (a) Project details. (b) Pricing strategy. (c) Present and future developments plans/special features in the project.3. To find the customers/investors perception about investing in realestate in Noida and Greater Noida. The research was intended to find outthe possible traits of the following:(a) Interest in investing in real estate.(b) Reasons for investing in real estate. (Short term, Long term, End useand Recurring returns)(c) Risk factors involved in real estate and return on investment.(d) Project they like to invest their funds. (Commercial properties, Plots,Group housing, High end properties, residential low end properties).(e) Which asset class they find the most secure (Real Estate, Equities,Debt or Commodities). 12
  • 13. (f) Lack of Facility in previous or current residence.2.2 HypothesisHypothesis is usually considered to be a principal instrument in research.Its main function is to suggest the new experiments and observations.Hypothesis is simply an assumption that has to be proved or declined. Itis a formal question that a researcher tries to resolve.The hypotheses formed in the research were:(Ho) 1 Consumers are interested in real estate investment.(H1) 1 Consumers are not interested in real estate investment,(Ho) 2 Consumers are interested in investment beyond 1 crores.(H1) 2 Consumers are not interested in investment beyond 1 crores(Ho) 3 People prefer to invest in Supertech.(H1) 3 People do not prefer to invest in Supertech.2.3 Research DesignThe research is Exploratory in nature. The overall research design wasflexible in nature. Non probability measures of sampling were used in thedesign. The samples were selected by judgemental and snowballsampling measures through references from the previous respondents.There is no preplanned statistical design for the analysis. Unstructuredinstruments were used for the collection of data. Primary data wascollected through direct meetings with the marketing offices of the 13
  • 14. various developers and also through visiting various real estateexhibitions held in different parts of the city. No fixed decisions about theoperational design were taken. Moreover responses were taken fromactual or potential buyers in the form of questionnaires.The study was a comparative analysis of the High end Properties inNoida and Greater Noida and also to study the consumer preferenceswhich they have before investing in real estate.The research study was carried out in order to make a comparison chartof all the offerings of major real estate developers in the vicinity.2.4 Sample DesignSample sizeThe sample size for the above study was a total of 100 people from NCR.The respondents were selected using non probability procedures. Nonprobability sampling is arbitrary and subjective when we chosesubjectively. The Non Probability measures selected for collectingprimary data were: • Judgemental Sampling • Snowball SamplingThe target respondents were HNI’s (6) upper segment of middle class highlevel of middle class and high level executive workforce of corporations.Approximately 100 questionnaires were filled and filled with responsesand out of these 85 % people showed interest in real estate investment.(6) HNI’s:- High Network Individuals. 14
  • 15. 2.5 Scope of the studyThe research study gives out a clear picture of the available high endproperties available in Noida and subway Noida.The data provided in the research study provides a clear cut view to thecompany about the availability and occupancy with several developers inthe vicinity and the prices offered by them.The data collected in the research study was used by the company to draftproposals and sent it to various commercial and corporate buyers.2.6 Limitations • The primary data was collected through the verbal communication with the marketing offices and then recorded. • There was a time gap between collection and recording of data. • Not all people have interest in real estate investment and still have filled in responses. • Real estate investment is a far more sophisticated process. Preferences vary from person to person, and requirements of every person vary on the basis of their family structure, income structure, age, availability of other investing options. • Older and middle aged people who have retired or have super annuated income do not show interest in such real estate investment. 15
  • 16. Chapter 3.0Critical review of literature 16
  • 17. Chapter 3.0 Critical review of literatureBuy your ‘Dream Home’ Now!According to experts study, investors willing to buy residential propertiesshould not wait. It is healthier to invest in the current market scenario.Just because the inflation rate is soaring at fairly high levels and isexpected to remain at the same level in the short to medium term. Therise in input costs of properties will continue and the developers will beforced to increase the prices in future.The home loans also catch the attention of income tax incentives for theborrowers. This means that it is good to invest in property early. Investorsshould factor in some variables while going for a home loan. As homeloan is a long-standing commitment between the borrower and the lender,it requires appropriate financial planning. Normally, home loan tenure is15 to 20 years.A few factors to consider while availing a home loan: 1) Scheme: The borrower needs to decide whether to go for a fixed or floating interest rate of the home loan. The current interest rate offered by institutions is between 12-12.5%. The Borrowers with income stability can go for the floating rate option and the risk-averse investors should decide on fixed interest rate loans. 17
  • 18. 2) Plan finances: The investors should factor in some interest rates hikes whilecalculating their respective equated monthly installment (EMI) outgo.The banks usually absorb minute interest rate increases by escalatingthe tenure of the loans. But in case of sharp rise in interest rates theinvestors can look for partial pre-payment and partial increase in theEMI outgo. As a rule of thumb, the EMI should not be more than 40% of the borrowers take-home salary or income. Since a home loan’s EMI is a long-standing issue, the investors need to plan other family expenses like their children’s education; marriages in the family etc and they have to adjust their outflow hence. 3) EMI: Repayment of home loans is through EMIs. They are the fixed installments a borrower needs to shell out over the term of the loan to settle up the debt as well as the interest in relation to it. The EMIs usually remain constant over the term of the loan. EMI = Loan Amount + Interest for the tenure of the Loan Tenure of the loan (in months) 18
  • 19. The amount of Installment to be paid depends on the loan and also varieswith the amount of the loan, the tenure of loan, the rate of interest, andtype of calculation of interest.In today’s scenario the loan tenure is about 20 -25 years.3) DETERMINING TENURE:Some factors that help in to make a decision the tenure of the loan are:a) Age of borrower:If the investor decides to borrow early at an early age, he can go in for alonger term loan - like 15 to 20 years. In this way, the monthly EMIpayments would become less though the amount of interest paid would bemore as compared to other alternatives, one can have the benefit ofavailing the loan for an extended period of time.b) Income of borrower:This will include the present income and also the expected future incomeof the borrower. The borrower must be able to repay his EMIs withoutcompromising major on his quality of his living. This calls in for ajudicious planning of cash flows.c) Tax benefits:A borrower must try to gain the maximum tax benefits offered under theIncome Tax Act. At present, the interest amount paid up to Rs 1.5 lakhsper annum paid for housing loans is deductible from the total taxableincome of the individual. 19
  • 20. 4) TENURE AND INTEREST RATE:The greater the term of loan higher will be the interest rate. This fact isjustified because the bank takes in higher risk in the contract while theEMI is lesser because the loan and interest are spread over time. 20
  • 21. The shorter the term, the lesser will be the interest rate because the risktaken by the financial institution is reduced. The interest amount inshorter term is lower because of the smaller tenure of the housing loan. 21
  • 22. Chapter 4.0Company Profile 22
  • 23. Chapter 4.1 Industry Profile:The Indian real estate sector has witnessed a revolution in the previousdecade motivated by the flourishing economy, complimentarydemographics and liberalized foreign direct investment (FDI) rules of thegovernment of India. Growing at a steaming, 35 per cent the real estatesector is likely to be worth US$ 15 billion and projected to grow at therate of 30 per cent yearly over the next decade, drawing FDI’s worth US$30 billion, with a number of residential townships and IT parks beingconstructed all over India.Real estate is the second largest employing sector in India (includingconstruction and facilities management), and it is associated with around250 odd ancillary industries like cement, steel, wood etc. throughbackward and forward linkages. Therefore, a unit raise in the expenses inthe real estate sector has a multiplier effect and the capacity to multiplyincome as soaring as 5 times.All-round DevelopmentRising income levels of a growing middle class and also with the increasein number of nuclear families in metro-cities, low interest rates offered byvarious institutions, modern attitudes towards home ownership and a shiftof outlook amongst the young urbanites from that of save and buy tobuy and repay in the form of equated monthly installments has allcombined to make better the housing demand. 23
  • 24. According to Housing Skyline of India 2007-08, a study by researchfirm, Indicus Analytics, there will be demand for over 24.3 million newlydeveloped units for self-living in urban India alone by 2015. Thus, thissegment is expected to offer vast investment opportunities. It is expectedthat an US$ 25 billion investment will be required over the coming fiveyears in urban housing, as per Merrill Lynch.At the same time, the speedy growth of the Indian economy has acascading effect on the demand for commercial as well as residentialproperty to help in meeting the needs of households and business, such asretail shopping centres, warehouses, hotels, modern offices and also forbasic and high end residential projects.Global MajorsWith the considerable investment opportunities up-and-coming in thisindustry, a large number of international real estate players have enteredIndia. Currently, foreign direct investment (FDI) inflows into the sectorare estimated to be between US$ 5 billion and US$ 5.50 billion.Investment in the Indian realty market is set to elevate to US$ 20 billionby 2010 with a boost from Real Estate Mutual Funds and Real EstateInvestment Trust. The sector, which is growing at an annual rate of 30%,is currently worth US$ 12 billion, according to a study by Deloitte. • Russian multinational Sistema plans to develop hotel, offices and residential complexes in main cities with an early investment of 24
  • 25. US$ 100-200 million, eyeing huge potential in Indias construction and realty market ahead of the 2010 Commonwealth Games.• Dawnay Day International, a London-headquartered group with gross assets to the tune of US$ 4 billion, is setting up a chain of four-star hotels in India, starting with a property in Jaipur that is expected to open by November.• India Land Ventures (ILVL), a part of the Madrid-headquartered Americorp Group, will invest US$ 585.48 million in eight infrastructure projects crossways in India over the next two years.• Jones Lang LaSalle (JLL), the worlds top integrated global real estate services and money management firm, plans to invest around US$ 1 billion in Indias rapidly increasing property market.• Deutsche Bank aims to invest more than US$ 1 billion over three years in Indian construction and real estate projects.• Merrill Lynch & Company purchased 49 per cent equity in seven mid-income housing projects of Indias biggest real estate developer DLF in Chennai, Bangalore, Kochi and Indore for US$ 375.98 million.• Landmark is set to invest US$ 993.38 million in 12 projects throughout the northern region in the next few years.• Several Dubai-based companies have invested billions of dollars in many real estate and infrastructure projects in India and are keen to boost it further in India. 25
  • 26. Global real estate major players such as Dubai World, Smart City ofDubai, Trump Organisation of United States, Kishimoto Gordon Dalaya,,Bonyan Holding, Khuyool Investments Plus Properties, ABG Group andAl Faras Properties amongst others have all firmed up their plans for theIndian real estate market with an investment of around US$ 20-25 billionin the coming 18 months.Realty FundsThe thunder in the real estate sector has attracted a large number of realtyfunds to tap into this area. Foreign investors have raised nearly US$ 30billion since March 2005 for investing in Indian real estate as perCushman & Wakefield.Famous global companies like Carlyle, Morgan Stanley, Blackstone,Trikona, HSBC Financial Services, Warbus Pincus, Americorp Ventures,Barclays and Citigroup among others have all already checked into theIndian realty market.Real estate has been involved in India emerging as the top destination inAsia leaving Japan aside in attracting private equity investments earlythis year. Real estate accounted for 26 per cent of total value of privateequity investments, with 32 deals priced at US$ 2.6 billion. According toindustry estimates, another US$ 10-20 billion would pour into real estatesector in the next few years. 26
  • 27. Going GlobalSide by side many Indian realtors are making a name in the internationalmarket through large investments in foreign markets. • Prudential Real Estate Investors have acquired Round Hill Capital Partners Kabushiki Kaisha, a Japanese asset management firm. • Embassy Group have done a deal with the Serbian government to put up a US$ 600 million IT park in Serbia. • Parsvnath Developers have tied up with the Al-Hasan Group in Oman. • Puravankara Group is doing a project in Sri Lanka - a high-end residential complex, comprising 100 villas. • The Hiranandanis are constructing 5000 5-star hotel rooms, which will come up between Abu Dhabi and Dubai. • Ansals API have tied up with Malaysias UEM Group to form a joint venture company, Ansal API-UEM Contracts Pvt Ltd and are biding for government projects in Malaysia. • Kolkatas South City Projects is working on two projects in Dubai.Government InitiativesThe Government has initiated numerous progressive transformationalmeasures to let loose the potential of the sector and also meet increasingdemand levels. • 100 % FDI permitted in realty projects through the automatic route. 27
  • 28. • In case of integrated townships, the minimum area to be developed has been brought down from 100 acres to 25 acres.. • Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly larger number of states in India. • Passing of Special Economic Zones Act by Government of India. • Least amount of capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million. • 100% repatriation of original investment allowed after three years. • 51 % FDI permitted in single brand retail outlets and 100 per cent in cash and carry via the automatic route.Road AheadAmid the economy rolling ahead, the demand for all segments of the realestate sector is likely to grow. The Indian real estate industry is expectedto grow from US$ 12 billion in 2005 to US$ 90 billion in by 2015.Given the boom in residential housing, organised retail, IT, ITeS, andhospitality industries, real estate industry is likely to see increasedinvestment activity. Foreign direct investment might see a six-fold jumpto US$ 30 billion alone over the next 10 years. 28
  • 29. Company Profile:The Supertech Group is one of the leading real estate developers inNorthern India. Since its setting up 15 years ago, the Supertech Group hasattained rapid growth by cashing in on the real estate boom in thecountry. Over the years, the group has achieved more than 75,00,000 sq.ft. of finest quality construction.Supertech limited established in 1988, as a construction company.The head office of the company is in Vaishali and project office is atSupertech Emerald Court. From its very inception the company has beeninto engineering Building and Promoting. Currently they have 36 projectsunder various stages of completion and execution with total of 573270.32sq meters of developed area and built up area of 115839950 sq feet. Theyhave 8345 dwelling units with a overall project cost of Rs. 27.61 billion.Supertech limited is working to make new benchmark of architecturalexcellence in the today’s global environment. In today’s world there is ademand for multi faceted real estate developments in order to keep trackwith the market and consumer demand.The main strong point of Supertech’s business philosophy is its state ofart engineering and best quality materials used in construction. This helpsin giving cheaper and superior quality solutions for residential andcommercial complexes. Supertech is persistently working for givingvalue to the customers and other business associates. 29
  • 30. Supertech has been awarded the “Udyog Ratan Award” for the year 2001and also ISO 9001:2000 quality certification.Supertech has started a number of prominent residential complexes whichare a convergence of luxury, elegance and convenience. The ongoingproject “Supertech Emerald Court” located at Taj Expressway Noida,offers ultra-modern 3 and 4 bedroom apartments and penthouses withinternational class specifications. Supertech Icon and Supertech AvantGarde are two other prime housing projects developed by Supertech.On the commercial front, Supertech has launched the Shopprix Mall inNoida and two related malls are under erection in Vaishali andKaushambi. These Shopprix Malls house the top retail brands of thecountry and offer a finest shopping ambience.Product Profile:Projects of Supertech in Noida and Greater Noida:1) Supertech Emerald Court 30
  • 31. Amid the thousand stones...none can match the shine of the‘Emerald Court’ which stands tall in the pulsating skyline of the NCR asa rare exception. Supertech ‘Emerald Court’ is rich with all treasuresneeded to enhance life. pleasure, peace, elegance - all in abundance tobedazzle your life. Not surprising considering the fact that its fromSupertech Group whose name ricocheting quality and commitment. The‘Supertech Emerald Court’ at Taj Expressway, Sector - 93, Noida, is aRs. 750 crores project and is the major project of the group till date and isa coming together of luxury, class and convenience. It is built on an areaof 70000 sq. meters of prime location land; the construction of thisproject is in full sway. Emerald Court is a multi-storied project consistingof 16-towers in which two towers are centrally air-conditioned. SupertechEmerald Court offers avant-garde 3 and 4 bedroom apartments andpenthouses with global specifications that absolutely cater to the taste ofthe highly demanding nouveau-riche. The apartments are four sides open& come with both air-conditioned and non-air-conditioned choices. 31
  • 32. The most important features of the project are dedicated parking,technologically advanced security, wooden flooring, ultra modern toilets,modular kitchen with piped gas supply, in-home maintenance servicesetc. There is an in-house club with five-star offerings. The project is sited6 kms. away from DND flyway. Being placed on the Taj Expresswaymakes it easily connected to other parts of NCR. It is near to theentertainment hub of Noida Sec.18, the Biotech City, NRI City, MedicalCity, IT City and Film City.The project will be having a Shopping Mall within its complex to takecare of shopping requirements of the residents. All the units areindependent in their own way and designed following contemporaryarchitectural structure. Units are offered in the following configurations:-3BHK apartments >> 1750 sq. ft. and 2290 sq. ft. >>Rs. 5500 per sqfeet4BHK apartments >> 2350 sq. ft. and 2810 sq. ft. >>Rs.5500 per sqfeet5BHK penthouses >> approx. 4000 sq. ft. >>Rs. 5500 per sq feetFeatures: It is an 82% open landscaped area with a Central Park of 3 acres.There are 2 Centrally Air-conditioned Towers, Four-side open apartmentsand Penthouses, in-house club with elite facilities like Health Club,Swimming pool, Badminton & Tennis Courts & an Amphitheatre. Thereis 24 hour water & power supply, reticulated gas supply to every kitchen,Vaastu affable structural layout & design, Advanced Security System etc.Status of the Project: 32
  • 33. Location: Plot No. 4, Sector-93A, Taj Expressway, NoidaLaunch Date: April 2005Planned Date Of Completion: • In Phase-I Aster-1, 2, 5, 6; Aspire – 1 & 4; are proposed to be completed by 31.03.2008. • In Phase – II; the remaining Towers will be completed by 30.06.2008.As on 1st Jan 2008, the work is in full swing for all 16 Towers, withfully-erect structures and finishing touches being done.There are in total 704 flats and 16 towers. There are also basement plusground floor plus 9 floors plus penthouses on top floors of each tower.It has a total built up area of 14,00,000 SQ. Ft.2) Czar SuitesGreater Noida,CZAR SUITES has the tallest towers in Greater Noida with a SKYSTUDIO. It has a Landscaped Lake with a water channel, CZAR 33
  • 34. SUITES is faces 330 feet wide Green Belt. It has 6 Acres of Central Parkwithin the premises. Each unit is 3 Side Open & park facing 30 ft Wideroads inside, it also has a 24/7 Concierge Service which is the latestinternational concept in Urban Living; Being Introduced for the first timein NCR by Supertech. It also provides an Array of branded utility & retailservices. The Club at CZAR SUITES is operational. At CZAR SUITESthere is 83% green area; it has a 6 Acre Central Park & each apartmentfacing that park. On an average every person living here will have a 165Sq. Ft. green area. It has unique style luxury Penthouses.Project StatusLocation: GH-02, Sec. Omicron-I, Greater Noida.Launch Date: Launched on February 2007Date of Completion: Phase-I will be completed by March 2009 andPhase-II by December 2009.Sample flats and club house are ready.It has 890 flats and 23 towers.Total Built Up Area: 16, 00,000 Sq. Ft. Approx.3) Supertech Emperor: The ‘Supertech Emperor Digital Home’ is a Rs. 400 crores projectat Taj Expressway, Sector - 93, Noida and is the largest project of thegroup till date. It is a coming together of luxury, status and convenience. 34
  • 35. It is built on an area of 48,263 sq. mtr. of prime land area. Theconstruction of this project is in full swing. ‘Emperor Digital Homes’ is amulti-storied project. It has 14 towers out of which two towers arecentrally air-conditioned. ‘Supertech Emperor Digital Homes’ offersultra-modern 3 and 4 bedroom apartments and penthouses with globalstandard specifications which completely cater to the tang of the highlydemanding nouveau riche. The core features of the project are Automatic Control of Lights,air conditioners, Doors from anyplace in the world through Mobile aswell as Computer, flawless Security System with intercom, CCTV andseparate electronic security lock with camera and access control. It has amodular kitchen with piped gas supply, dedicated parking, woodenflooring, ultra modern toilets, in-home maintenance services etc. There isan in-house club with five-star assistance. ‘Emperor Digital Homes’ willhave a Central Park stretched over 3 acres of land. The project is locatedjust 6 kms. away from DND flyway.The project is well connected to NCR due to its presence on theexpressway.Features: There would be automatic control of lights, air conditioners, doorsfrom anywhere in the world via Mobile as well as Computers. It will havea security system with intercom, CCTV and separate electronic securitylock with camera and access control. Czar Suites will have a finger printdoor access and a log report of visitors. It will have motorized splitcurtains, auto scene control; LCD touch-screen based automation systemetc.Status of the Project:Project Location: Plot No. 4, Sector-93A, Taj Expressway, NoidaLaunch date: April 2005Date of Completion: December 2007 35
  • 36. Total No. Of Flats: 704No. Of Towers: 16No. Of Floors: Basement + Ground floor + 9 floors + PenthouseCompetitor’s profileJaypee Pavilion heightsSector 128 Noida Jaypee Greens is the developer of Pavilion Heights and is locatedin Sector 128 in Noida. It offers 2 & 3 bedroom apartments. It is spreadover 453 acres of cascading greenery, an 18-hole signature golf facility iscombined with superlative residences, nature reserve, recreational greens,lakes and landscaped parks.Jaypee Greens is a venture of Jaypee Group, a well-diversifiedinfrastructural and industrial group with a turnover of over Rs. 3500crores. Jaiprakash Associates Limited is the flagship company of theGroup and is an recognized leader in construction of River valley andEngineering and Construction, Hydropower projects, Cementmanufacturing, Hospitality, Real-Estate Development, and Infrastructuredevelopment in the shape of Expressways and Highways etc. 36
  • 37. Pavilion Heights located in Sec. 128 on Noida greater Noida Expressway4 kms from the Amity intersection, thus enjoying good connectivity andsite advantage with-respect-to the city master plan. Due to presence onthe expressway, there is an easy access to other parts of NCR.Amenities :Amenities offered are golf course, wave pool, fire fighting systems,swimming pools, modular kitchen, pre-assembled wardrobes inbedrooms, independent split-type air conditioned units as per design,door Phones & Intercom, 24x7 security on entrance gates, water supplyvia underground lines & overhead tanks, fire detection & sprinklersystem as approved by fire safety norms, electrical wiring in concealedconduits with modular switches and power back up.Prices2BR2T (river view) 1240 sq. ft. >>Rs. 59, 52,000.2BR2T (golf view) 1240 sq. ft. >> Rs. 63, 24,000.3BR2T (river view) 1650 sq. ft. >>Rs. 79, 20,000.3BR2T (golf view) 1650 sq feet >>Rs. 84, 15,000.* BR-Bedroom, T-Toilet, SR-Servant Room* Area mentioned is Super built-up area.* PLC, Car Parking, Club charges, Maintenance extra.Wish town NoidaSec. 128, Noida. 37
  • 38. Jaypee Greens has offered an 18-hole signature Graham Cookegolf facility pooled with world-class dwellings, recreational greens,nature reserves, lakes and marvelously landscaped parks. Jaypee Greens is a undertaking of Jaypee Group, a well branchedout infrastructural and industrial group with a proceeds of over Rs. 3500crores. Jaiprakash Associates Limited is the flagship company of theGroup and is a well known leader in construction of River valley andHydropower projects, Engineering and Construction, Cementmanufacturing, Hospitality, Real Estate Development, and Infrastructuredevelopment in the form of Expressways and Highways. Amenities offered are golf course, wave pool, fire-fightingsystems, swimming pools etc. It also provides modular kitchen, pre-assembled wardrobes in bedrooms, independent split-type air-conditionedunits, door phones & intercom, 24x7 security on entrance gates, watersupply through underground lines & overhead tanks, fire detection &sprinkler system as approved by fire safety norms, electrical wiring inconcealed conduits with modular switches and power back up.Prices1BR-1T (Pavillion Court) 850 sq ft >>Rs. 38, 67,5002BR-2T (Pavillion Court) 1150 sq ft >>Rs. 52, 32,500 38
  • 39. 3BR-3T (Pavillion Court) 1600 sq ft >>Rs. 72, 80,0002BR-2T (Kalypso Court) 1600 sq ft >>Rs. 92, 00,0003BR-3T-1SR (Kalypso Court) 2260 sq ft >>Rs. 1, 29, 95,0003BR-3T-1SR (Kalypso Court) 2290 sq ft >>Rs. 1, 31, 67,5003BR-3T-1SR (Imperial Court) 2310 sq ft >>Rs. 1, 32, 82,5003BR-3T-1SR (Kalypso Court) 2370 sq ft >>Rs. 1, 36, 27,5003BR-3T-1SR (Kalypso Court) 2800 sq ft >>Rs. 1, 61, 00,0003BR-3T-1SR +Terrace 2900 sq ft >>Rs. 1, 66, 75,0004BR-4T-1SR (Kalypso Court) 3225 sq ft >>Rs. 1, 85, 43,7504BR-4T-1SR (Imperial Court) 3290 sq ft >>Rs. 1, 89, 17,5004BR-4T-1SR (Kalypso Court) 3300 sq ft >>Rs. 1, 89, 75,0004BR-4T-1SR (Imperial Court) 3320 sq ft >>Rs. 1, 90, 90,0004BR-4T-1SR (Imperial Court) 3435 sq ft >>Rs. 1, 97, 51,250* BR-Bedroom, T-Toilet, SR-Servant Room* Area mentioned is Super built-up area.* PLC, Car Parking, Club & Maintenance charges extra.Eldeco AamantranSec. 119 Noida. Eldeco Aamantran is located at the most preferred location inNoida - Strategically located on Greater Noida Road and the Faridabad-Noida-Ghaziabad corridor. It has the connectivity to NH-24, GreaterNoida & Faridabad. It has lush green surroundings with three main parkswithin the sector. Golf course is within 15 minutes driving distance. 39
  • 40. The ‘Eldeco Group’ has been at the good position of real estate in NorthIndia since 1975. The group is identical in a number of towns likeLucknow, Agra, Kanpur and NCR. The group has more than 120projects, dwelling townships, high-rise Condominiums, town-houses,malls & shopping complexes have been brought up. The collectiveconstructed area totals to 16 million sq. ft.The group has earned ISO 9001 certification and the merit of being thefirst developer in India to obtain the DR2 rating from ICRA (associate ofMoodys in India).Amenities offered are swimming pool, gymnasium, kids play area,multipurpose room, tennis court, golf carts to ferry guests etc.Prices:2BR-2T 1300 sq. ft. >>Rs. 47, 45,0002BR-2T-1SR 1540 sq. ft. >>Rs.56, 21,0003BR-2T 1740 sq. ft. >>Rs. 63, 51,0003BR-3T 1920 sq. ft. >>Rs. 70, 08,000Duplex 2670+75 sq. ft. >>Rs. 97, 45,500Dup Penthouse 2695+1455 sq. ft. >>Rs. 98, 36,750Eldeco OlympiaSec. 93-A Noida. Eldeco Olympia is located on the first-class Noida expressway. It islocated within the complex of Eldeco-Utopia and offers 3 bedroomcompletely air-conditioned apartments. It has wonderfully landscapedarea with all-weather swimming pool and a sports court. 40
  • 41. The ‘Eldeco Group’ has been at the good position of real estate in NorthIndia since 1975. The group is identical in a number of towns likeLucknow, Agra, Kanpur and NCR. The group has more than 120projects, dwelling townships, high-rise Condominiums, town-houses,malls & shopping complexes have been brought up. The collectiveconstructed area totals to 16 million sq. ft.The group has earned ISO 9001 certification and the merit of being thefirst developer in India to obtain the DR2 rating from ICRA (associate ofMoodys in India).Amenities offered here- swimming pool, sports facility, banquet hall,guest rooms, sauna & jacuzzi, all weather swimming pool etc.Prices:3BR-3T 1655 sq. ft. >>Rs. 83, 82,5753BR-3T-1SR 2150 sq. ft. >>Rs. 1, 12, 76,750* BR-Bedroom, T-Toilet, SR-Servant Room* Area mentioned is Super built-up area.* PLC, Car Parking, Club & Maintenance charges extra.Unitech Grande 41
  • 42. Unitech launched its super luxurious golf course residential project‘Unitech Grande’ on the first-class Noida Expressway. This is less than2.5 kms from the Amity intersection on the Noida Greater NoidaExpressway. It is spread over 347acres. It includes a ‘Greg Norman’ 9-hole Signature Golf Course, a habitat centre that has an art-gallery, amuseum, 10 conference rooms, an integrated sports complex, medicalfacilities and schools within the boundary of ‘Unitech Grande’. Itprovides accommodation in 3-4 bedroom modern apartments &penthouses with fitted modular kitchen along with refrigerator, washingmachine & dryer. Unitech is one of the major listed real estate companies in Indiawith a market capitalization of around US$ 5 billion. It has experience ofover 20 years in real estate development and also has developed manybarren landscapes into landmarks.Amenities offered are: swimming pool, gymnasium, sports facility, kidsplay area, multipurpose rooms, golf course, cafeteria, golf club pro-shop,2 Golfers Lounge, convention centre, meeting hall, banquet hall,conference rooms, food courts, bowling alleys, sports complex,gymnasium, yoga, aerobics room, indoor jogging track, 4 squash courts,juice bar and health food outlet, billiards and snooker room, card room,childrens room, 2 home theatres, steam and sauna etc.Prices3BR-3T 2120 sq. ft. >>Rs. 1, 61, 12,0003BR-3T-1SR 2230 sq. ft. >>Rs. 1, 69, 48,0003BR-3T 2334 sq. ft. >>Rs. 1, 77, 38,4003BR-3T-1SR 2372 sq. ft. >>Rs. 1, 80, 27,2003BR-3T-1SR 2516 sq. ft. >>Rs. 1, 91, 21,6003BR-3T-1SR 2557 sq. ft. >>Rs. 1, 94, 33,2003BR-3T-1SR 2625 sq. ft. >>Rs. 1, 99, 50,0003BR-3T-1SR 2810 sq. ft. >>Rs. 2, 13, 56,0004BR-4T-1SR 3272 sq. ft. >>Rs. 2, 48, 67,2004BR-4T-2SR 3473 sq. ft. >>Rs. 2, 63, 94,8004BR-4T-2SR 3799 sq. ft. >>Rs. 2, 88, 72,400* BR-Bedroom, T-Toilet, SR-Servant Room* Area mentioned is Super built-up area.* PLC, Car Parking, Club & Maintenance charges extra. 42
  • 43. Omaxe Twin TowersSec. 50 Noida. Omaxe puts forward ultra luxurious apartments ‘Twin Towers’located in Sec 50 Noida. It is designed by renowned Australian architectsOIA. It provides 3 bedroom air-conditioned apartments and has classamenities like swimming pool, gymnasium, and a wave pool. Omaxe Constructions limited is one of the large Real EstateDevelopment companies in India and has carried out more than 120major Institutional, Industrial, Commercial, Residential and Hospitalconstruction projects. The company in a span of 5 years hasaccomplished and delivered 10 projects including 8 residential and 2commercial projects covering approx 5.13 million sq. ft of area. Thecompany at present has 46 projects under development. Amenities offered are swimming pools, Jacuzzi and showerfacilities, Vaastu friendly structural design; separate store room inbasement, smart-security system, Internet for every room, ground floorwith exclusive lawn, mineral water plant in every kitchen and an ultramodern chimney and hub. It also offers a gymnasium, sports facility, kids 43
  • 44. play area, multipurpose rooms, geyser in all bathrooms, modular kitchen,100% Power backup, split type air-conditioners all bedrooms, woodenwardrobe in all bedrooms, chandeliers in living room, fans and decorativelightings in all rooms etc.Prices3BR-3T-1SR 2150 sq. ft. >> Rs. 1, 18, 25,0004BR-4T-1SR (Penthouse) 4182+197 sq. ft. >> Rs. 2, 30, 01,000* BR-Bedroom, T-Toilet, SR-Servant Room* Area mentioned is Super built-up area.* PLC, Car Parking, Club & Maintenance charges extra. 44
  • 45. Omaxe Forest SpaSector 93-C Noida. Forest Spa is an ultra luxury comfy apartments and penthouses andare sited in the vicinity of 325 acres of lovely reserve forest which is thevery embodiment of luxury living. It is located on the Noida-GreaterNoida Expressway. It puts forward ultra luxurious 3, 4 and 5 bedroomunits. Each unit complex comes with facilities like central air-conditioning, unrestricted view of the club, swimming pool and thecentral park, and a parking space for 2 cars, car-wash area in basement,launderette, service lift, driver’s lounge area with toilets. Every apartmentunit has a health club in the main bathroom, with sauna, steam, Jacuzziand shower facilities; an eye-catching glass fascia and Vaastu friendlystructural design. Imported modular kitchen cabinets, imported marbleflooring, an open kitchen with granite slap counters, a mineral-water plantin every kitchen and modern chimney and hub. Omaxe Constructions limited is one of the large Real EstateDevelopment companies in India and has carried out more than 120 45
  • 46. major Institutional, Industrial, Commercial, Residential and Hospitalconstruction projects. The company in a span of 5 years hasaccomplished and delivered 10 projects including 8 residential and 2commercial projects covering approx 5.13 million sq. ft of area. Thecompany at present has 46 projects under development.Amenities offered are swimming pools, Jacuzzi and shower facilities,Vaastu friendly structural design; separate store room in basement, smart-security system, Internet for every room, ground floor with exclusivelawn, mineral water plant in every kitchen and an ultra modern chimneyand hub.Prices: 4BR-4T-1SR 2900 sq ft 1,88,50,000 4BR-4T-1SR 3550 sq ft 2,30,75,000 4BR-4T-1SR 4150 sq ft 2,69,75,000 5BR-5T-2SR 6500 sq ft 4,22,50,000* BR-Bedroom, T-Toilet, SR-Servant Room* Area mentioned is Super built-up area.* PLC, Car Parking, Club & Maintenance charges extra. 46
  • 47. Omaxe Grand Woods:Sector 93 Noida Omaxe ‘Grand Woods’ located on the Noida-Greater NoidaExpressway. It offers luxurious accommodation in 2-3 bedroom choices.The project is spread over approximately 23 acres; with 325 acres of lushgreen forest surrounding it is like living in the lap of Mother Nature. Yet,with every convenience of modern life at your disposal including the bestlocation i.e. Noida expressway for easy connectivity, healthyenvironment and ambience, superior design, high quality of constructionand boasts of high quality neighborhood. Omaxe Constructions limited is one of the large Real EstateDevelopment companies in India and has carried out more than 120major Institutional, Industrial, Commercial, Residential and Hospitalconstruction projects. The company in a span of 5 years hasaccomplished and delivered 10 projects including 8 residential and 2commercial projects covering approx 5.13 million sq. ft of area. Thecompany at present has 46 projects under development. 47
  • 48. Amenities offered are swimming pools, rainwater harvesting, tree-linedavenues, fire fighting cyst, 100% power back-up, RCC frame structureetc.Prices:2BR-2T 1110 sq. ft. >>Rs. 55, 50,0003BR-3T 1600 sq. ft. >>Rs. 80, 00,0003BR-3T-Basement 1625 sq. ft. >>Rs. 81, 25,0003BR-3T-1SR 1900 sq. ft. >>Rs. 95, 00,0003BR-3T-1SR-Basment 1940 sq. ft. >>Rs. 97, 00,000* BR-Bedroom, T-Toilet, SR-Servant Room* Area mentioned is Super built-up area.* PLC, Car Parking, Club & Maintenance charges extra. 48
  • 49. Chapter 4.3SWOT Analysis 49
  • 50. Chapter 4.3 SWOT AnalysisIndustry SWOT Analysis:In India the building & construction industry is a main driver ofeconomic growth. Here the construction sector accounts for about 6% ofGDP. Though the construction sector includes industrial construction,roads, ports and other infrastructure, it is in real estate that the newliberalized set of laws will have the maximum impact. The sectorscontribution is expected to boost in the coming years. Real estate growthin India focuses on two key areas, retail and residential. The global real-estate consulting group Knight Frank has positioned India 5th in the list of30 up-and-coming retail markets and forecasted an impressive 20%growth rate for the organized retail segment by 2010.A report on real estate trends by Merrill Lynch says that the number ofMalls in Bangalore, New Delhi, Mumbai, Hyderabad and Pune wereexpected to rise to about 250 by 2010 as against 40 now. In terms of totalregion, there was 12.40 million sq. ft. of mall space on hand in thesecities.The sector presumes its importance by way of being a large consumer ofresources, supporting a large ancillary industries and significantemployment generator. The access of foreign investors to the same mayalso lead to the development of an organized real estate finance market.Opportunities & Threats:Real estate has always been about location. But as the time lapses by, it isbecoming more about reputation. Given the current trend and thewillingness of the Government to facilitate growth, there appears to be 50
  • 51. opportunities galore for construction companies in the medium to longterm. Development of the real estate sector has not been uniform acrossthe country. While cities such as Mumbai, Delhi, Gurgaon and Bangalorehave been a realtor’s paradise, Threats:Though the potential for growth is significant, achieving it is not as easyas it appears. The success in construction industry calls for improvedmethods of construction to achieve desired levels. With economy openingup and consequently, its growing needs, it is required to keep pace withthe scientific and technological advancement.RISK & CONCERNSBarring a handful of large companies, the industry set-up is characterizedby the predominance of the small unorganized contractors. To counter thegrowing competition and keeping in view the rising outlays onconstruction projects, the larger companies in the sector are increasinglyinvesting in capital equipment. Most contracts being awarded are of afixed turnkey type, which carry penalties and incentives for delay andearly completion, respectively. 51
  • 52. Chapter 5.0 Data 52
  • 53. Chapter 5.1 Data CollectionThe study was carries out in Noida and greater Noida and the responsesof the consumers were collected from NCR via Questionnaires. The studyrequires both primary and secondary data. The primary data is collectedmainly from the Property Exhibitions and through direct Interaction withthe marketing office/ employees of other developers.The research was carried over a period of 8 weeks.The approach of the research was direct. The research was mainlyconducted through a personal visit to the various site offices andmarketing offices of the concerned developers and also via questionnairesin NCR (See appendix for the questionnaires). The customers/ investorsin the selected sample size answered an array of questions.The questions Asked in the questionnaire were as follows:Q1. Are you interested in investment in real estate?Q2. Have you invested in real estate?Q3. If yes for what purposes you look in while investing in to real estate?Q4.What all risk factors you consider before investing?Q5.What will be your preferential size of apartment?Q6. What all developers you can recall in Noida?Q7. Have you visited any site offices in Noida?Q9. What are the locations and projects preferred? 53
  • 54. Q10. What is your price budget for buying residential property on TajExpressway?Q11. Would you like to take Supertech as an investment option? Chapter 6.0 Findings and analysis 54
  • 55. Chapter 6.0 findings and analysis PART - I The primary objective requires locating the availability of the High End Properties in the proximity of Noida and Greater Noida. It also covers the details about the project- specific offerings of each real estate developer. The findings of the same were:- 1) OMAXE: RESALE NO. OF FLATS/PROJECT NAME LOCATION SIZES STATUS SALE RATE RATE MAINTAINANCE 1100 2HBK, 1600 3BHK, 5000 Per Sq 1625+600 feet(basement (3BHK booking charges- Grand Woods +Basement) open 3765) NA 162 flats 2900 3BHK 3550 3BHK+SQ 4150 4BHK+SQ 5800 Per SqForest Spa (ultra 6500 booking Feet - 6500 luxury) Sec 93 B 5BHK+2SQ open per sq feet NA 1250 flats 2150 3BHK booking 5500 Per Sq. Twin Towers Sec 50 +SQ. open Feet NA 2) SUPERTECH: 55
  • 56. SALE RESALE NO. OF FLATS/ PROJECT NAME LOCATION SIZES STATUS RATE RATE MAINTAINANCE Czar, 890 flats Emperor, booking 5500 per Aster, Sec 93 A 3BHK-4 BHK open sq feet NA 704 flats 3) ELDECO: SALE RESALE NO. OF FLATS/PROJECT NAME LOCATION SIZES STATUS RATE RATE MAINTAINANCE 5750(1- 3rd), 5650(4- 2150 (3BR, 8th), 4T, SQ 5450(9- 3Balcony, 13th) loby ) 5250(14th+) NA 5550(1- 3rd), 5450(4- 8th), 1655 (3BR, 5250(9- 20 per Sq Feet 3T, 4Balcony booking 13th) ( deposit ) + 1.5 per Olympia Sec 93 A loby) open 5050(14th+) NA Sq Feet ( monthly ) Eldeco is considered to be the nearest competitor of Supertech in the Sector 93-A 4) ATS: SALE RESALE NO. OF FLATS/ PROJECT NAME LOCATION SIZES STATUS RATE RATE MAINTAINANCE 1300, 1500, Greater 1750, 2800, between Rs. Noida penthouse, 6000 and ATS Greens Expressway, ground floors, 6500, per Sq. Village Sec. - 93 villas sold Sold out feet 1500 per flat Rs. 3500 Greater per sq. ATS Paradiso Noida. 3-4 BHK feet 1500 per flat 56
  • 57. The project is Almost fully occupied, 650 out of 700 already occupied.5) JAYPEE: 57
  • 58. SALE RESALE NO. OF FLATS/PROJECT NAME LOCATION SIZES STATUS RATE RATE MAINTAINANCE 800-1BHK 1170-2BHK Sector 128 1600-3BHK booking 5100 per Pavillion Court Noida (super area) open sq feet NA 1650-2BHK 2440-3BHK 2440-3 BHK(B) 1650-2BHK 2440-3BHK 2440-3 BHK(B) 3660- 4BHK (With terrace)(A) 3200- 4BHK(B) 2970- 3BHK (with terrace) 2430- 3BHK (A&B) 3340- 4BHK 3200- 4BHK(B) (Type A & Terrace) 3180- 4BHK(B) 3340- 4BHK(C) 2950- 3BHK (with terrace) 2380- 3BHK 3300- 4BHK with terrace 3150- 4BHK(B) 1625- 2BHK 2920 3BHK (with terrace) 2425- 3BHK 3335- 4BHK (with terrace) 2945- 3BHK (with terrace) Sector 128 1885- 2BHK booking 6100 perKALYSPO COURT Noida (super area) open sq feet 4510 sq feet with basement ground first and second Sector 128 floor (Villa booking 7500 per TOWN HOMES Noida Types) open sq feet NA 58
  • 59. 6) PARSAVNATH: SALE RESALE NO. OF FLATS/PROJECT NAME LOCATION SIZES STATUS RATE RATE MAINTAINANCE Paradise Shrishti Sec 93 A 2-3 BHK sold There is Very less occupancy in the Shrishti towers. 7) ASSOTECH: SALE RESALE NO. OF FLATS/PROJECT NAME LOCATION SIZES STATUS RATE RATE MAINTAINANCE CELESTIE 4750 sq feet booking 8000-8200 TOWERS Sec 44 5BHK open +PLC NA 8 UNITECH: SALE RESALE NO. OF FLATS/PROJECT NAME LOCATION SIZES STATUS RATE RATE MAINTAINANCE Maintenance Charges for the Period of 5 years to be 2120, 2230, determined at the 2334, 2372, time of offer of 2516, 2557, possession on the Greater 2625, 2810, 7600-8000 basis of Super area of Noida 3272, 3473, booking Per Sq the apartment +Aqua And Terra Expressway 3799, open Feet NA Service taxes 59
  • 60. 9) GAUR: RESALE NO. OF FLATS/PROJECT NAME LOCATION SIZES STATUS SALE RATE RATE MAINTAINANCE Maharaja-I 1246 Sq Feet 4000 per sq Samrat-I feet with 15% 1625 Sq Feet down Rs 1 per sq feet. Sector 119 Samrat-II booking payment With security Rs. GRANDEUR Noida 1739 Sq Feet open discount NA 20 per sq feet 10) PURVANCHAL: SALE RESALE NO. OF FLATS/PROJECT NAME LOCATION SIZES STATUS RATE RATE MAINTAINANCE 2510 , 2115 , 1805 , 5025 per 3685+835 , Sq Feet + 30 per Sq Feet 2930+985 , 2100 per ( deposit ) +1500 per 2495+605 Sq limited Sq Feet month ( Fixed amount SILVER CITY Sec 93 A Feet units left ( terrace) NA ) 30 per Sq Feet 2850 + ( deposit ), 1.25 per 4005+1205 1350 per sq feet + .25 per Sq Sq Feet Sq Feet NA Feet ( for terrace ) 30 per Sq Feet 2850 + ( deposit ), 1.25 per 3350+870 Sq 1350 per sq feet + .25 per Sq Feet Sq Feet NA Feet ( for terrace ) 30 per Sq Feet 2851 + ( deposit ), 1.25 per 2820+650 Sq 1350 per sq feet + .25 per Sq Feet Sq Feet NA Feet ( for terrace ) 30 per Sq Feet sector zeta 2852 + ( deposit ), 1.25 per 01 greater 3440+1050 booking 1350 per sq feet + .25 per Sq HEIGHTS Noida Sq Feet open Sq Feet NA Feet ( for terrace )SILVER CITY -II Sector PI - booking 3225 + 30 per Sq Feet II Greater open 1500 ( deposit ) +1500 per Noida 3750 + 700 ( terrace) month ( Fixed amount Sq Feet per Sq NA ) 2950 + 985 Feet NA 30 per Sq Feet Sq Feet ( deposit ) +1500 per month ( Fixed amount ) 60
  • 61. 30 per Sq Feet ( deposit ) +1500 per 2495 + 605 month ( Fixed amount Sq Feet NA )PART - IIOut of 100 responses filled by respondents, the major results were:Q1. Are you interested in investment in real estate? Valid Cumulative Frequency Percent Percent PercentValid Yes 85 85.0 85.0 85.0 No 15 15.0 15.0 100.0 Total 100 100.0 100.0(Ho) 1 Consumers are interested in real estate investment.(H1) 1 Consumers are not interested in real estate investment,Interpretation: due to the recent growth trends in the real estate sector inthe NCR, the consumers are showing more interest in real estateinvestment. This is because the real estate has shown promised return inlast few years in both commercial as well as residential areas. The returnon real estate has beaten all form of investment and hence looked on byinvestors as a better option. In real estate investment, the consumer getstax benefits as per the income tax act due to interest payment of loan, onthe other hand they save paying rent and develop a compulsory savinghabit and also create a valuable asset for a long time. 61
  • 62. Q2. Have you invested in real estate? Valid Cumulative Frequency Percent Percent PercentValid Yes 65 65.0 65.0 65.0 No 35 35.0 35.0 100.0 Total 100 100.0 100.0Interpretation: The result shows that considerably high numbers ofrespondents have made a real estate investment in the past. The mainreasons being the promising returns in the past, easy loan availability andattractive offers from both the real estate developers and the financialinstitutions.Q3. If yes for what purposes you look in while investing in to realestate? Valid Cumulative Frequency Percent Percent PercentValid long term return 29 29.0 29.0 29.0 short term return 8 8.0 8.0 37.0 Recurring return 25 25.0 25.0 62.0 own use 28 28.0 28.0 90.0 i don’t invest in real 10 10.0 10.0 100.0 estate Total 100 100.0 100.0 62
  • 63. Q4.What all risk factors you consider before investing? Valid Cumulative Frequency Percent Percent PercentValid legal and regulatory 27 27.0 27.0 27.0 factors political factors 3 3.0 3.0 30.0 lack of reliable 7 7.0 7.0 37.0 valuation data lack of professional 11 11.0 11.0 48.0 advice hard to determine the 34 34.0 34.0 82.0 best opportunities Others 18 18.0 18.0 100.0 Total 100 100.0 100.0Interpretation: Out of the total responses filled, people find it hard todetermine and evaluate the best options available in the market as thereare multiple options made available by a pool of developers in more orless the same price range. All the developers almost have more or less thesame offerings. 63
  • 64. Q5.What will be your preferential size of apartment? Valid Cumulative Frequency Percent Percent PercentValid 2bhk 3 3.0 3.0 3.0 3bhk 58 58.0 58.0 61.0 4bhk 17 17.0 17.0 78.0 independent 11 11.0 11.0 89.0 villa penthouse 11 11.0 11.0 100.0 Total 100 100.0 100.0Interpretation: The respondents have chosen the 3 BHK as the mostpreferred category of the apartment. This is due to the emergence of theconcept of nuclear families in the NCR and the high liquidity aspect of a3 BHK apartment in terms of resale and fast disposal.Q6. What all developers you can recall in Noida? gaur parsavnath 7% parsavnath 11% supertech jaypee 16% jaypee assotech 16% omaxe ats assotech eldeco unitech 4% purvanchal 14% unitech purvanchal omaxe supertech 5% 14% ats gaur eldeco 9% 4% 64
  • 65. Q7. Have you visited any site offices in Noida? Valid Cumulative Frequency Percent Percent PercentValid yes 36 36.0 36.0 36.0 no 64 64.0 64.0 100.0 Total 100 100.0 100.0Interpretation: most of the respondents are unaware about the presenceof the site/marketing offices of developers and considerably a largenumber of the respondents have not visited any of these offices.Q8. What all parameters and facilities you look into any real estateproperty before investing? ROI golf course golf course clear title 9% 7% club parks 8% club parks affordability 14% pollution free locale connectivity to office waterbodies 13% affordability 10% wi fi connectivity proximity to proximity to markets markets pollution free locale 10% 8% connectivity to office clear title wi fi connectivity waterbodies 10% 11% ROI 65
  • 66. Q9. What are the locations and projects preferred? Valid Cumulative Frequency Percent Percent PercentValid Noida 79 79.0 79.0 79.0 Greater 16 16.0 16.0 95.0 Noida Others 5 5.0 5.0 100.0 Total 100 100.0 100.0Interpretation: the respondents have shown an affinity towards Noidaand especially on the expressway because of the easier connectivity withother parts of NCR, ongoing infrastructure projects such as airport, masspublic transport system etc in the near future. Also in the recent pastNoida expressway has shown an impressive two fold increase in theproperty prices every fourth year. All these make the expressway as thetop preferred location for investment. 66
  • 67. Q10. What is your price budget for buying residential property onTaj Expressway? Valid Cumulative Frequency Percent Percent PercentValid 75 Lakhs To 1.25 56 56.0 56.0 56.0 Crores 1.25 Crores To 1.75 36 36.0 36.0 92.0 Crores 1.75 Crores To 2.25 8 8.0 8.0 100.0 Crores Total 100 100.0 100.0(Ho) 2 Consumers are interested in investment beyond 1 crores.(H1) 2 Consumers are not interested in investment beyond 1 croresQ11. Would you like to take Supertech as an investment option? Valid Cumulative Frequency Percent Percent PercentValid yes 74 74.0 74.0 74.0 no 26 26.0 26.0 100.0 Total 100 100.0 100.0(Ho) 3 People prefer to invest in Supertech.(H1) 3 People do not prefer to invest in Supertech. 67
  • 68. Chapter 7.0Recommendations 68
  • 69. Chapter 7.0 Recommendations 1) It is the right time to buy the property in Noida as the customers can benefit from the high inflation rate and rising interest. For ex A 20 year loan’s EMI paid today may have minimal value 10-15 years hence. 2) High-tech infrastructure is coming up with global standards, so the companies should identify them properly and serve their customers with what they desire. 3) Innovative marketing techniques should be practice, visual advertisements, road shows and seminars should be carried out. The company should list itself with various investor clubs in order to attract HNI clientele & long lasting association. The company should also participate in foreign real estate exhibitions like recent one held in Birmingham (U.K.). 4) In light of the current scenario of rising interest rates and inflation it would be beneficial for the customers who will be buying units through self funding would get better options as the developers are ready to provide attractive investment options such as flexible payment’s , EMI sharing and other added advantage which would also include down payment discounts. 69
  • 70. 5) People who are buying the property for end use on expressway and surrounding areas would get better deals because at the end of the day they can get an independent unit at a lower rate of interest, as it is supposed to rise in future, hence, it would be a better deal considering the future market scenarios.6) Companies can use social networking sites for sale of flats and brand promotion.7) Globally investments are done to counterattack the inflation as the property rates would raise and if a consumer purchases a property then it reduces his disposable income substantially hence countering inflation. Moreover rise of interest rates and inflation is a global issue today in major countries in the South-Asian market and in U.S but in spite of all this, there is a rise in global infrastructures such as expressways, public transport system, airports and other benefits the government is providing, hence, the rates in the real estate sector is bound to grow up in future so investment is better in the current time period. 70
  • 71. “Don’t Wait To Invest In Real Estate, Invest And Then Wait”Drawing a home on a piece of paper with little hands and crayons isan inseparable part of everyone’s childhood. No science can maketheories to explain, why children around the world draw homes,surrounded with lush green garden, a blossoming lawn, a smiling sunand a river flowing alongside.It is perhaps because at every stage of one’s life, people continue todream about their home. As we grow up, this idea of ‘dream home’acquires a distinct and clear shape. The home that we drew with ourlittle hands becomes an important dream in our life ultimately! 71
  • 72. Chapter: 8References: 72
  • 73. Chapter 8.1 References:http://www.ibef.org/artdispview.aspx?in=60&art_id=17526&cat_id=381&page=3http://www.moneycontrol.com/stocks/company_info/directors_report.php?sc_did=GCC02http://www.supertechlimited.comhttp://www.indiaproperty.comhttp://www.magicbricks.comhttp://www.allcheckdeals.com 73
  • 74. Chapter 9:Annexures 74
  • 75. Chapter 9: AnnexuresQuestionnaire QuestionnaireIntroduction:Thank you for taking the time to complete the survey. Your valuablefeedback is integral to our academic research on consumer preferencesabout investing in Real Estate.Specifically we want to uncover whether Supertech is a brand in whichconsumers would like to invest in?Your answers would remain strictly confidential and will be used only forresearch purposes only. The survey would take about 5 minutes tocomplete. Once again I would thank you for your time.Name: ________________________________________________________Age: __________________________________________________________Occupation: ___________________________________________________Contact details:E-Mail: _______________________________________________________Contact # :_____________________________________________________ Please answer the following questions: 1) Are you interested in investment in real estate? o Yes o No 2) Have you invested in real estate in the past? o Yes 75
  • 76. o No3) If yes, for what purposes you look in while investing into real estate? o Long term return o Short term return o Recurring return o Own use o I don’t invest in Real estate4) What all risk factors apart from the following you consider before investing? o Legal factors and regulatory risks o Political factors o Lack of reliable valuation data o Lack of professional advice o Hard to determine the best opportunities o Asset volatility Others_______________________________5) What will be your preferential size of apartment? o 2 BHK* o 3 BHK* o 4BHK* o Independent Villa o Penthouse o Other: ______________ * (BHK- Bedroom, Hall and Kitchen)6) What all developers you can recall in Noida? o Paravnath o Jaypee o Assotech o Omaxe o ATS 76
  • 77. o Eldecco o Purvanchal o Unitech o Supertech o Gaur7) Have you visited any of the site-offices in Noida? o Yes o No If yes, please specify whose? _________________________8) What all parameters and facilities you look into any real estate property before investing? o Golf course o Club/ Parks o Affordable Price Range/ Low Interest Rates o Peaceful Locality/ Pollution Free environment o Swimming Pools/ Lakes/ Other water bodies o Wi-fi Internet o Proximity to Markets/ Schools/ Hospitals/ Places of worship/ Entertainment Centres o Connectivity to Office/ Public Transport o Clear Title/ Resale Value o Return On Investment o Others:_____________________________________________9) What all other factors your previous (Or Current) property lack? Pleasespecify:__________________________________________________10) What are your locations and projects preferred? o Noida: __________________________________________ 77
  • 78. o Greater Noida:____________________________________ o Others: __________________________________________ And why? _____________________________________________________11) Under what is your price budget for buying a residential property on Taj Expressway? o 75 lakh to 1.25 crores o 1.25 crores to 1.75 crores o 1.75 crores to 2.25 crores o 2.25 crores and above12) Would you like to take Supertech as an investment option/ Residing purposes? o Yes o No 78
  • 79. Chapter 10:Case study 79
  • 80. Chapter 10: Case study Noida Greater Noida--Taj Expressway Boon to Noida Reality 80
  • 81. Introduction and Background to the Case: The expressway connects two important destinations of Nationaland International importance i.e.; National capital region of Delhi and apart of golden triangle and hot tourist destination, Agra both these placeshave high potential to generate traffic and economic development. Theexpressway popularly known as Taj expressway which acts as the jugularvein in the Noida and greater Noida framework as it acts as theconnecting route between Noida and greater Noida. The total length of the Greater Noida expressway is 23.627 km outof this total, 20.127 km lies in Noida and the rest 3.5 km in GreaterNoida. The attractive part of expressway is a hassle and signal free drive. The total expenditure made by state on expressway, excluding landacquisition works out to approximately Rs. 155 crores when theexpressway was not constructed. The expressway reduced commutingtime from Noida to greater Noida to 1 hr from 2 to 2 ½ hrs and there hasbeen a reduced impact of pollution on environment significantly.However the major effect which expressway has brought in greater Noidais the steep rise in the property market in greater Noida and the propertiesalongside expressway. This is because the expressway brings in easierconnectivity to Noida and Greater Noida. Average capital value thatstands at Rs 1200 to Rs 1500 per sq ft in the year 2002 have gone up toRs 4000-8000 per sq. ft. , it is a remarkable percentage growth of 430%!!. 81
  • 82. In case of a plotted development, the values range from Rs 8000 per sq.mt. to 45000 per sq. mt. The major benefit from the project is improved connectivity ofNOIDA and Greater NOIDA thereby it improves the prospects ofattracting new Industries, Commerce, Trade, and Development ofInfrastructure. The expressway has witnessed the steep rise in the marketvalue of the properties and the establishment of various SEZ parks due tothe increased connectivity. The availability of the ‘high end’ propertieshas also attracted foreign investment in the form of NRI purchases of thehigh end residential properties and commercial properties along theexpressway. The thunder in the property market has also provided livingto a substantial amount of people. Various MNC’s have started there operations centre along with theexpressway; to name a few HCL, Perot Systems , UPS , PatniComputer’s, Havell’s etc. The expressway is also a new venue forinstitutes in Technical, Management, Vocational and educational arena toopen in the coming 5-years with DPS, Ryan, IIT Rorkee, Bits Ranchi,National Law School, Birla Institute of Technology and Management andAmity school are already operational. To attract various investors and theend users interested in real estate the various projects; which are initiatedand are on various stages development. 82
  • 83. Moreover approvals for various projects are being given by governmentsuch as: • Delhi Metro soon to reach Greater Noida. • 250 acres of night safari on the lines of the Singapore night safari. • Proposed International Airport, Aviation Hub & Cargo Hub. • Proposed Pragati Maidan/ Expo Centres. • 222 acre Greg Norman signature golf Course. • Proposed Formula-1 Track. • 220 acres of multi facility family entertainment parks. • Connectivity to Agra by Taj Expressway. • Proposed Wholesale Market, Agro-processing Park. • 26 IT-ITES parks are proposed and their construction is in full swing. • Approximately 15 SEZs are on various stages of development and approval. Due to the easier access to NCR, the real estate has witnessed anall-round raise in the demand of residential properties as well ascommercial properties alongside expressway. This has resulted in to allthe key developers in the sector to open up several new ventures whichhave caused the appreciation in the real estate prices. People are comingforward both as investors and actual end users of the units. Thecompetition has benefited the customers as they have more options, theycan choose between luxury and value to money according to there needs. 83
  • 84. The real estate boom in cities of Noida and Greater Noida is still ona high. With Special Economic Zones (SEZs), hotels, commercial andresidential complexes in pipeline, the cities forecast strong and sustainedgrowth for all real estate segments. Development of residential,commercial, and institutional area alongside the Noida-Greater NoidaExpressway in the next 10 years can be out of the ordinary. The sectors near the Expressway are likely to see an additionalpopulation of 15.84 lakhs by 2021. The expected additional population is11.53 lakhs.The Noida expressway is divided into 4 main zones: Zones Distance Sectors Less than 1 92, 96-99, 106, Zone 1 Km 128, 133-136 42, 43, 45-48, Zone 2 1-3 Km 82, 104, 107, 109 and 110 Zone 3 3-5 Km 49, 50 and 101 72-79, 114-120 Zone 4 6 Km and 122The Noida Greater Noida Expressway is 23 km long. Out of this, only 3km falls under Greater Noida Authority and the remaining part is withNoida Authority. 84
  • 85. The real estate sector which has developed alongside theexpressway and surrounding areas the various major sectors in which realestate market has been developed are 119 , 50 , 44 , 93 – A, B, C. Thesector which is sizzling among these is sector 93 because in this sectorthe competition is between the big players of the real estate viz. ofSupertech, Omaxe, ATS, Eldeco, Parsavanath and Purvanchal. Presence of Supertech on the expressway; The Supertech group is one of the leading real estate developers inNorthern India. Since its very inception 20 years ago, the SupertechGroup has achieved rapid progress by taking advantage of the real estateboom in the country. During the course of time, the company hasaccomplished more than 75, 00, 000 sq. ft. of premium qualityconstruction and also delivering value to its consumers. 85
  • 86. Supertech has undertaken a number of impressive residentialprojects which are combination of extravagance, sophistication andsuitability. The ongoing ‘Supertech Emerald Court’ project located atExpressway, Noida, offers ultra-modern 3 and 4 bedroom apartments andpenthouses with international class specifications. Supertech IconSupertech, Avant Garde and Supertech Czar Suites are other primeresidential projects developed by Supertech. On the commercial front,Supertech has launched the Shopprix Mall in Noida and two similar mallsare under construction in Vaishali and Kaushambi. Shopprix Mall housessome of the top retail brands of the country and offers shoppingambience. Supertech groups persistent dedication towards excellence hasfetched them the coveted Udyog Ratan Award for the year 2001 and alsoISO 9001:2000 certification for the global quality construction standards.Key Issues: ATS Village shares its boundaries with ‘Supertech Emerald Court’on one side and ‘Parsavanath Prestige’ on the other side. It is equallycompetitive when it comes to offering and benefits and amenities in thereprojects. Still there is so much variance in the price offerings of all thethree even when they share the same territory. The target market of themare also more or less common; so what are the factors which combines tofix there prices with respect to earn profit on there investment and tobuild a Brand value. The difference it’s not ignorable by the customer 86
  • 87. when he comes to invest for end use or even as a investment if wecompare the prices of ‘Purvanchal Heights’ with ‘Supertech’s EmeraldCourt’ and ‘ATS Village’. There is a huge difference between themdespite that Purvanchal’s offering is value to money and hence cheaper incomparison to Supertech and ATS; though it does not has a strong brandname such as Supertech and ATS. Hence it affects the sales. Where as ifwe just go on the other side of the Expressway, in Sector 128 Noida, Where lies the prestigious project of Jaypee group; they arecharging approximately Rs. 7000 per sq. ft. where as in ‘PurvanchalHeights’ charges approximately Rs. 2400 per sq. ft. We can concludewith the current scenario in real estate is much unanticipated asdevelopers in the same territory are at a different level of price offerings.The various factors which affect it are;Value to money – When the customer thinks about purchasing a residential flat thefirst priority is that the property should give full value to the moneyinvested and should be a profitable investment in the long run. Theinvestment should fulfill all the criteria of his needs and should besustainable when the future probabilities are concerned.Investment Scenario – 87
  • 88. The prevailing trends in the real estate market and the behavior ofthe customers regarding buying and selling, different developers in orderto offer something different define different unique selling prepositions.This is all guided by the investment scenario.Brand Value – Whenever it comes to an investment or purchase of such a highamount, the strength of the brand image or the brand value plays a veryimportant role.Added Benefits –The added benefits provided by the developers in their projects over andabove the competitors helps in deciding the price offering of the projects. 88