Market research was conducted for a proposed housing project in Gurgaon. The research had 6 key objectives: 1. Analyze political, economic, social and technological factors (PEST analysis) to understand macro market factors. 2. Examine trends in the local housing market. 3. Study property growth versus demand and supply. 4. Identify features of different housing categories in the area. 5. Analyze profitability by assessing land costs, construction costs, and potential selling prices. 6. Determine an optimal product mix based on objectives 1-5 and target demographics. The research examined housing trends, demand versus supply, competitor features, land costs and potential profits to identify a viable

1. Market Research – Housing Project
Arpit Kumar

2. Presentation Structure
• What is Market Research
• Objectives of Housing Market Research
• PEST Analysis
• Trends in Housing Market
• Property Growth vs Demand Supply
• Features of Housing Category
• Product Mix

3. What is Market Research?
About a market Past, Present and Potential
About the Product
Characteristics (product specific),
spending habits, location, competitors
Gathering
Analyzing
Interpreting

4. Objectives of Market Research – Housing Projects
1. To understand macro factors affecting the market (PEST analysis)
2. To realize trends in housing market
3. To analyse the property growth vis-à-vis Demand Supply Analysis
4. To know features of the housing category
5. To know profitability and various cost involved in project
6. To decide the final product mix with housing strategy

5. Objective 1 - PEST Analysis
P E S T
Political Economical Social Technological
Result – Should we go ahead with the project? – Level 1 – City Level – When project is at idea stage!

6. Objective 2 – Trends in Housing Market
Real Estate Overview Trends in Housing Category
Residential Commercial Affordable Housing Apartments
Result – Should we go ahead with the project? – Level 2 – Project is focused on specific category or segment!

7. Gurgaon (Housing Project) – A Case Study
• Housing trend for various
typology
• a plot of 60 sq. Yd. (ews) to 1000
sq. Yd. (2 kanal)
• row houses
• villas
• independent bungalows
• multi-storeyed apartments -
1/2/3/4/5/6 bedroom to
penthouses with large terraces
ranging from 3000 sqft (few) to
5000 sq ft in premium range
• builder flats (on plots)
• Developer exclusive floors etc.

8. Objective 3 – Property Growth vs Demand Supply
Capital Analysis Rental Analysis
Residential
or
Commercial
Saleable value
of the property
Rental Value of
property
You will be able to answer - What is the Demand? And How much is the Supply?
Past
Present
Potential
Result – Should we go ahead with the project? – Level 3 – If there is adequate demand and supply is not
enough

9. Gurgaon (Housing Project) – A Case Study
• Capital Analysis through Land Value

10. Gurgaon (Housing Project) – A Case Study
• Demand and Supply Analysis
• High demand for residential houses
0%
20%
40%
60%
80%
100%
Gurgaon I Gurgaon II
Residential Demand
No. of Plots alloted No. of Plots vacant
Gurgaon I Gurgaon II
No. of Plots allotted 21,707 19,851
No. of Plots vacant 550 1,131
Total Supply 22,257 20,982

11. Objective 4 – Features of Housing Category
• A.k.a. Micro Market Research
• Within close parameter (generally 2 km radius)
• Features to look at:
• Product mix
• No. of floors
• No. of blocks
• Amenities
• Start, end and possession date
• Cost
Result – What features to be considered in the project

12. Gurgaon (Housing Project) – A Case Study
• Within close proximity what is
the product mix:
• DLF Phase 1
• DLF Phase 3
• South City 1
1%
45%
50%
3%
45%
11%
41%
2%
34%
45%
14%
7%
EWS LIG MIG HIG
COMPARISION BETWEEN VARIOUS
SECTORS
DLF Phase 1 DLF Phase 3 South City 1
45%
28%
20%
7%
People Preference
1 BHK 2 BHK 3 BHK 4 BHK
A mix of all Income Groups with significant EWS + LIG Housing

13. Gurgaon (Housing Project) – A Case Study
• Within close proximity what
infrastructure facilities are
available:
• Adequate water supply
• Sewerage disposal system
• Uninterrupted electricity
• Drainage system
• Community
buildings/facilities
• Public transport system
Categories DLF Phase 1 DLF Phase 3 South City 1
Adequate water supply Yes Yes Yes
Sewerage disposal system Yes Yes Yes
Uninterrupted electricity No Yes No
Drainage system Yes Yes Yes
Community buildings/facilities No Yes No
Public transport system Yes Yes Yes

14. Objective 5 – Profitability Check
• For various land use zone categories
• Land area
• FSI
• Built-up area
• Land cost
• Purchasable FSI
• Other Factors affecting cost
• Construction Cost
• Govt Expenses
• IDW
• Interest, Subsidy
• Amenities
• Advertisements
• Decide the Selling Price
• Profit %age
Result – which land use zone category
need to take up

15. Gurgaon (Housing Project) – A Case Study
• Residential land use zone (Mid Rise)
• Land Area = 5 ha
• FSI = 1.75
• Built-up area = 83 k sqm
• Land cost = Rs 50 Crores
• Purchasable FSI = none
• Other Factors affecting cost
• Construction Cost = Rs 89 Crores
• Govt. Expenses = Rs 25 Crores
• IDW = Rs 3 Crores
• Interest on Term Loan = Rs 14 Crores
• Subsidy on EWS = Rs 6 Crores
• Amenities = Rs 7 Crores
• Advertisements = Rs 2 Crores
• Selling Price = Rs 225 Crores
• Profit = Rs 25 Crores

16. Objective 6 – Product Mix
• Various Product Mix
• Type 1
• Type 2
• Type 3
• Analyse pros and cons based on 5 objectives stated earlier
• Final Product Mix based on
• Aspirations
• Need of the organization/individual is developing and for whom
Result – Final Product Mix with features

17. Your Product is Decided – Now
Focus is on Design!
Thank you.