ASummer Training Project Report On ― A study of Customer Perception in Real Estate with specific preference to commercial sector‖ Subject Code: MGM 303 Title : Summer Training Project Report Submitted by: Rashi Jain MBA (SM) Semester – III (Session 2013-14) R.A. PODAR INSTITUTE OF MANAGEMENT. FACULTY OF MANAGEMENT STUDIES . UNIVERSITY OF RAJASTHAN. J.L.N. Marg, Jaipur-302004 ACKNOWLEDEMENT I take this opportunity to express my profound gratitude and deep regards to my guide, Mrs Richa Maini, HR Manager, Bardiya Real Estate Pvt. Ltd. for exemplary support, guidance and monitoring and constant encouragement throughout the course of this project work. I am grateful to Bardiya Real Estate Pvt. Ltd. and all its employees for making the environment conducive to learn from their practices & vast experiance in the industry. I also like to thank them for this opportunity to learn the market conditions by providing a platform to interact with the employees directly. I am also grateful to my teachers and mentor for guiding me. RASHI S.NO CONTENT 1. ACKNOWLEDGEMENT 2. CERTIFICATE OF SUMMER TRAINING 3. OBJECTIVES OF STUDY 4. EXECUTIVE SUMMERY 5. INTRODUCTION a) OF THE SUBJECT b) OF THE COMPANY 6. LITERETURE REVIEW 7. RESEARCH METHODOLOGY 8. RESEARCH ANALYSIS 9. RESEARCH FINDINGS 10. CONCLUSION 11. RECOMMENDATIONS 12. BIBLIOGRAPHY 13. APPENDICES OBJECTIVE OF THE STUDY 1. To determine the customer‘s perception. 2. To determine the customer‘s expectations. 3. To determine the problems faced by the customer while investing for property. EXECUTIVE SUMMERY The Indian economy is the second largest growing economy of the world and the Real estate sector is one of the major contributors in the growth of the Indian economy. I have undertaken this study to analyze the perception of the investor in the real estate sector and also to identify the various reason contributing to the growth of the sector. The study is based on the data collected both through primary sources such as questionnaires, personal interviews and secondary sources like internet, journals, books and magazines. The sample size taken for the study was of 200 respondents who were interviewed personally and on telephonic interview. The study also looks into the role of the government by way of different policies that effect the investment decision of the investor. A case study was made on Bardiya Real Estate Pvt Ltd. The case study is based on the investment made by the company in Rajasthan. It overs the problems faced by the company and the future prospect of that project. LITERETURE REVIEW Customer Perception is defined as the way that customer usually view or feel about certain services and product. From the layman‘s prospective, perception is defined as an act of being aware of one‘s environment through physical sensation, which denotes an individual‘s ability to understand. (Source: investopedia.com) Perception is the process whereby people select, organize and interpretate sensory stimulation into meaningful information about their work environment. (Source: Rao and Narayan: 1998) One of the perception important to the study of consumer behavior is level of perceived risk in potential investment. Types of risks customer face includes: performance, financial, physical, psychological, social and time. (Source: Ross, 1975) The amount of perceived risk is a function of product, characteristics of customer and external forces. Customer through their perceptual filtering use their mental image of town and types of archietecture tend to enduce. If the city is thought to be dangerous, then the consumer will notice the news report of crime in the area. Similarly, if consumer perceives investment in houses as safe and investments in industrial property as risky, then no amount of financial analysis may be able to sway them. In addition, two investor in similar financial sitiationmay place different risks, premiums on a particular investment because of their personal attitudes towards risk. (Source: http://citeseerx.ist.psu.edu) The real estate sector has become a major contributor of an economy‘s growth. To understand the significance of the sector and its implications, there have been various research on real estate industry both in India and abroad. I have tried to study few such research papers to get a better idea about the current scenario of real estate sector. Singh Dhillon, Jaskaran, Lubana says that the role of real estate sector consumers in estate agency practice cannot be emphasized. This study provides an analysis of real estate consumers‘s perception of service quality in Punjab, India, for the purpose of creating better consumer satisfaction and improving service qualityin the real estate agency market. A survey of 203 real estate consumer revealed what real estate consumer actually value in real estate agency service delivery but are lacking on the part of real estate agents. This research indicated 5 key component to customer‘s satisfactionin real estate sector. They are- ―courtesy‖, ―provided service as promised‖, ―frequent communication‖, ―exact time service would be performed‖ and ― personal attentention. (source: International Journal of Research in Commerce, IT and management, nov 2012 vol. 2, issue 11, page no. 46) Vandna Singh and Komal (2009) in their research paper found that as the GDP increases the real estate prices also increases because there is a high degree of Positive correlation between the real estate prices and GDP. The Real estate prices also increases with increase in the per capita income as there is high degree of positive correlation between these two. The FDI into the country affects the real estate FDI and real estate having a positive correlation leads to the boom in this sector. Increase in FDI from 2006to march 2007 is 10%. Earlier it was 16% and now in 2008 it is 25%.The interest rate also affects the real estate prices because it affects the lending and borrowing by the investors. In residential segment, availability of easy home finance and rising purchasing power has driven the growth. Builders are launching high-end, life style residential products to cater to the growing bunch of high net worth individuals. They suggested that due to high prices the lower income group is not able to purchase the land, so govt. should take measures to protect the lower income group. The investors should analyze the type of land in which they are going to invest and the potential Returns from it. Due to lot of investment avenues in real estate in India, fraud cases are also increasing day by day like in Delhi deconstruction of buildings. Thus careful measures and laws should be enacted to deal with these types of situations. (source: International research jounal of finance and economics, ISSN 1450-2887, Issue 24,2009) Dirk Brounen in Dec 2008 said that the Real estate markets around the world have earned a complicated reputation. On the one hand, real estate markets offer investors a wide spectrum of profitable investments opportunities, investments that nowadays can be executed by simply buying shares of stock listed by real estate investment companies. In the first half of this inaugural address, the boom of these real estate stocks is discussed. In less than three decades, the listed real estate market developed into a sector with almost400 listed firms worldwide, representing a sum aggregate market capitalization of around one trillion dollars by the end of 2007. Three relevant lessons regarding these international real estate stocks are discussed in the first fifteen pages of this booklet, lessons offered by real estate research from the Rotterdam School of Management. On the other hand, real estate markets are notorious for attracting entrepreneurs with bad intentions, seeking for opportunities to circumvent the strong arm of the law. These activities have yielded many headlines in the daily press and have given real estate a gloomy reputation. The dynamics of foreclosure auction of homes is an example of a source of negative headlines, stressing that the suboptimal organization of these auctions prohibits distressed sellers from earning a fair price for their home. In the second part of this address, I focus on an empirical test of the matter. By analyzing over 700 auctioned homes the dynamics of the auction system is discussed objectively. This offers a fair view on the problems at hand and searches for way to improve the system in the near future. (Source: Bronen, Dirk, The bloom and gloom of real estate market, dec 2008, ERIM report series) Articals about real estate : (source: Economic times) Slowdown in IT hits commercial real estate sector (March 25 th 2013) Slow uptake of office space by information technology firms in India is beginning to cast a shadow over the country's commercial real estate sector, data from property consultancy firms indicate. Figures provided by two property consultants — Cushman & Wakefield and DTZ — show that absorption of office space in 2012 across the top eight Indian cities stood at 29.05 million sq ft, a 23% decline over the previous year. Of this, the share of the IT sector, which accounted for 64% of the commercial space absorbed in 2009, dropped to 44% in 2012 at 13.22 million sq ft. It was 16.08 million sq ft in 2011. Sebi introduce draft norms for Real Estate Investment Trust (October 10 th 2013) Looking to attract more investments into the capital market, Sebi today proposed listing of Real Estate Investment Trusts (REITs), a popular instrument for raising funds in the realty sector. Issuing draft norms for REITs, the capital market watchdog said the evolution of such investment vehicles is "crucial" for the rapidly growing real estate industry REITs would be allowed to list on stock exchanges through Initial Public Offer (IPO) and can raised funds further through Follow-On Offers, according to the consultation paper and draft norms issued by Securities and Exchange Board of India (Sebi). "REIT shall be set up as a Trust under the provisions of the Indian Trusts Act, 1882," Interpretation : After going through the study of customer perception in real estate and various research papers and articles, I interpreteted that now a days who go for investing in real estate have become more aware about what they should seek and are concerned about the situation of right type of property for them. Many people are dissatisfied from the real estate marketing information provided by real estate agents and companies. Mostly people use print media and news reports as a source of information while searching for a property. Due to lot of investment avenues in real estate in India, fraud cases are also increasing day by day. Therefore, careful measures and laws should be enacted to deal with these type of situations. INTRODUCTION OF REAL ESTATE SECTOR India has experienced near double digit growth in the last several years. The commercial real estate market is no exception. The IT offices have created a huge demand for quality office space that was non-existent a few short years ago. Several prominent Indian developers have emerged and more and more international investors and developers are plugging into the country. As with any local regional market, there are many idiosyncrasies that color the business environment, and India is no exception. Below is an introduction into the current conditions within the Indian real estate market and what the future may hold as India quickl y becomes a global superpower. In the Financial Years 2007-08, 2008-09 and 2009-10, the housing and real estate sector attracted FDIs of 8.9%, 10.3% and 11% respectively, of the total FDI in India. However, the financial year 2010-11 saw a mere 6% FDI in this sector. The year 2010 saw the Indian real estate sector spring back into action after the gloom and recessionary pressures experienced in the aftermath of the global downturn. The focus on ‗affordable housing‘ helped the sector tide over the financial crunch it had witnessed. There is no doubt that the sector holds huge potential to attract FDI in its various segments. However, progress is possible only with the joint efforts of both the industry and the Government. On the one hand, the industry should work towards increased transparency, clear land titles, improved delivery and project execution while on the other hand the Government must provide fiscal incentives to developers to build low cost and affordable housing for the masses and also review the existing FDI guidelines for investment and development in Indian real estate in order to increase the flow of foreign capital into the sector INTRODUCTION TO REAL ESTATE SECTOR Real estate means an immovable property, either commercial or residential which may consist of a building or a structure. Real estate can be divided into these catagories: The Indian real estate and construction industry is an integral part of Indian economy and plays an important role in the development of the country‘s infrastructure base. The contribution of the real estate sector to India‘s gross domestic product (GDP) has been estimated at 6.3 per cent in 2013, and the segment is expected to generate 7.6 million jobs during the same period. It is also expected to generate over 17 million employment opportunities across the country by 2025. The sector comprises of four sub-sectors- housing, retail, hospitality, and commercial. While housing contributes to five-six percent of the country‘s GDP, the remaining three sub-sectors are also growing at a rapid pace, meeting the increasing infrastructural needs. Real Estate Sectors Commercial Space Residential space Retail space Hospitality space Riding high on the back of rapid urbanization, positive demographics and rising income levels, the Indian real estate sector has attracted significant investment over the past few years. The growing stability of the market is reflected by the continuous growth of the core investors, with over Rs 7,705 crore (US$ 1.14 billion) invested in ready office space during the last three years. GOVERNMENT POLICIES The government has taken various initiatives to improve the real estate sector. It has made the policies for FDI in real estate very liberal. The new stand adopted by Indian government regarding foreign direct investment (FDI) policies has encouraged an increasing number of countries to invest in Indian Properties. The positive outlook of Indian government is the key factor behind the sudden rise of the Indian Real Estate sector. The Government of India in March 2005 amended existing norms to allow 100 per cent FDI in the construction business. This liberalization act cleared the path for foreign investment to meet the demand into development of the commercial and residential real estate sectors. It has also encouraged several large financial firms and private equity funds to launch exclusive funds targeting the Indian real estate sector. Until now, only Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) were permitted to invest in the housing and the real estate sectors. Foreign investors other than NRIs were allowed to invest only in development of integrated townships and settlements either through a wholly owned subsidiary or through a joint venture company in India along with a local partner. The minimum land area for development by foreign investors is lowered from the earlier floor of 100 acres to 25 acres which has further made the real estate sector lucrative in the eyes of the foreign investors. The Government is also initiating various projects like the ultra mega power project, Golden quadrilateral project and the Delhi Mumbai Industrial corridor. COMMERCIAL REAL ESTATE SECTOR IN INDIA The term commercial property (also called investment or income property) refers to buildings or land intended to generate a profit, either from capital gain or rental income. Commercial property includes office buildings, industrial property, medical centers, hotels, malls, retail stores, farm land, multifamily housing buildings, warehouses, and garages. In many states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes. CATAGORIES OF COMMERCIAL REAL ESTATE CATEGORY EXAMPLE Leisure Hotels, Public houses, Sports complex , Restaurents Retail Shops, Shopping Malls Office Office buildings Industrial Industrial property, Warehouses, Distribution centres Healthcare Medical centres, Nursing homes Multifamily (Apartments) Multifamily housing buildings The demand for new office space in India has grown from an estimated 3.9 million sq. ft in 1998 to 16 million sq. ft in 2004-05. 70% of the demand for office space in India is driven by over 7,000 Indian IT and ITES firms and 15% by financial service providers and the pharmaceutical sector. COMMERCIAL REAL ESTATE IN 2013 The fact that the major cities of Mumbai, NCR-Delhi, Bangalore and Chennai saw 72.5% of the total commercial space absorption in 2012 is a telling one, and indicates the forward path. These cities will grab the lion‘s share of 74-76% contribution in total commercial space absorption in 2013. In terms of commercial real estate investment potential Mumbai, Banglore and Delhi NCR will continue to be highest intrest of investors focused on real estate in 2013. Mumbai will see highest share of commercial corporate property transactions from companies focused on their own occupancy needs. The Delhi NCR region will be more popular with high net worth and institutional investors. It is expected to bring larger than usual number of NRI investors into the commercial space arena. This is because NRI are currently enthused by prevailing exchange rate benefit and the fact that commercial real estate capital values are still 15-25% under their 2007-08 peak levels. . Absorption Breakup COMMERCIAL REAL ESTATE IN JAIPUR Jaipur has always ranked high on the Indian and foreign tourist‘s itinerary, and prospered not only because of its proximity to Delhi, but for the rich cultural package it offers to every visitor. Over the last decade, Jaipur has taken a leap forward from its culture and history to join the ranks of modern technology centers of reckoning in India today. The IT wave sweeping the city has created a need for modern commercial spaces and the subsequent requirement for appropriate housing. Real estate development in Jaipur has reached astounding heights as property developers from across the country vie for a share of the very lucrative property market in Jaipur, the pink city of India. Commercial spaces in Jaipur are being re-defined with landmark structures like the World Trade Park which will be equipped with retail, trade and business spaces, trading facilities, 5-star hotel, art gallery and museum, an auditorium and a convention centre. The City Pulse, Gaurav Towers, Crystal Mall, Crystal Palms and the Crystal Court also offer business and shopping under one roof, while the Gold Souk will cater exclusively to shoppers for jewellery. The Metropolitan offers 250,000 sq. ft of shopping, entertainment, a luxury hotel and a business centre. The real estate boom in Jaipur is here to stay with the government‘s active support for the mega commercial projects – as they take shape, the property market in Jaipur will maintain its healthy upward trend. INTRODUCTION TO THE COMPANY COMPANY PROFILE Bardiya group is one of the few Business houses of Rajasthan that work towards excellence. The business house shelters various trades such as Real Estate, Hospitality, Gemstones, Retail, Entertainment, Mining and Agro. We have proven our metal in various sectors and have grown to become a leading light in every field, the Real estate sector being the most remarkable one with the first of its kind mall called ‗Gaurav Tower‘ at Malviya Nagar, Jaipur. The group came into existence in the year 1980. Mr. Rajendra Bardiya the founder of this group started this company with gemstone business, which even today deals with around a hundred varieties of precious and semi-precious stones. His hard work and his passion for excellence in the work that he took up paid him to be a maestro in the field of gemstones. BOARD OF DIRECTORS Mr. Rajendra Bardiya Chairman, Bardiya Group of Companies Mr. Gaurav Bardiya Director, Bardiya Group of Companies Mr. Vikas Bardiya Director, Bardiya Group of Companies CHAIRMAN’S PROFILE Mr. Rajendra Kumar Bardiya born on 16 th September 1956, the founder and chairman of Bardiya Group, has been a creative thinker right from the start. His futuristic ideas helped him to grow both as a person and as a successful businessman. His farsightedness not only made him the leading light of various businesses but also played a key role in modernizing the city and matching its lifestyle with those of metro cities. It is his sheer perseverance, sincere efforts, devotion and the motivation to contribute his success to the society at large that has lead to the company‘s skyrocketing accomplishments. Mr. Bardiya‘s success story started with the Gemstone business in the year 1980. Back then he dealt in all kinds of Precious and Semi Precious Gemstones and also purchased and established a few techniques and know-how of heat treatment plants, diamond tools. In the early 1990‘s when most of the commercial and retail activities were carried out at the Jaipur walled city, Mr. Bardiya, a visionary that he was, foresighted the decentralization of the city and moved ahead to establish "GAURAV TOWER" an enormous shopping mall which was the only one of its kind in the city back then. With the introduction of Gaurav Tower, Jaipur, which was already an architecturally and culturally sound city, proudly stepped into the urban culture. Though back then critics were skeptical about the success of this venture but Mr. Bardiya's willpower, adherence and prudence made this venture to be one of the finest success story of the city and today GT serves as one of the most popular landmarks of Jaipur. As Gaurav Tower developed to be a major landmark of city, its success made the JLN road the most sought after site for all the upcoming Multi National Companies, Hospitals, high-end Hotels and other Malls. The JLN Road has now roofed many new buildings but even today the Gaurav Tower stands tall amongst all its counterparts and happens to be the most desired hang out place for the city dwellers. The success story doesn‘t end just there, over the years Mr. Bardiya has been focusing on exploring new business opportunities which has driven him to enter the mining sector. DIECTOR’S PROFILE Mr. Gaurav Bardiya Mr. Gaurav Bardiya, son of Mr. Rajendra Bardiya was born on 19 June 1983; a self reliant and disciplined man, Mr. Gaurav takes pride in belonging to a family of successful leaders. He completed his schooling from Bhavan‘s Vidhyashram School, Jaipur and went on to attain his Bachelor of Business Administration from the University of Bradford, U.K. He has been associated with the Bardiya Group affairs since 2004 and has been keenly following the footsteps of his illustrious father Mr. Rajendra Bardiya. Seeking guidance from his father when required Mr. Gaurav Bardiya works hard to create a niche of his own and meet the vision of establishing a leadership position in the Real Estate & Hospitality Industry. He has been delegated the vital function of formulating Strategies of Marketing Policies, Legal and Liaison specifically, in addition to the General Management and Affairs with more proactive approach. Mr. Vikas Bardiya Mr. Vikas Bardiya, the youngest Director of the group, was born on December 19, 1986 at Jaipur in Rajasthan. He is a scion of the Bardiya family of successful businessmen. He did his schooling from Bhawan's Vidyashram School, Jaipur and completed his management degree from Regent BusinessSchool. He joined the Bardiya group in year 2006 and since then has helped the company in achieving new pinnacle in business. His aim and motto is to establish a leadership position in the construction and mining industry. He has been entrusted the vital function of formulating technical strategies of Construction and Mining industry specifically, in addition to general management and affairs. REAL ESTATE SECTOR OF THE COMPANY After a massive success in the ground of gemstone, the company put its best foot forward and entered the Real estate sector in the early 1990s. Its first mall, the celebrated ‗Gaurav Tower‘ tasted a grand success and went on to become a pace setter to other malls that cropped in the city later. The success story of this mall was penned in the ‗India Today Magazine‘ dated 21st November 2005. The popular magazine notified the Mall as the first Mall of North India. The Group entered the real estate business with a bang in the early 90‘s. They were the first to foresee the urban side of Jaipur and it is the group‘s insight that gave birth to one of the largest Mall in Rajasthan. Gaurav Tower the first of its kind Mall in Jaipur has given the city denizens a taste of metropolitan and the gentry has been thronging the Mall ever since. The success of Gaurav Tower immensely encouraged the group to acquire lands at the most luxurious and high up locations of city Gaurav Tower more commonly known as ‗GT‘ has grown into an entertainment hub in the past few years with around an average footfall that ranges from 18,000 to 20,000 per day. After the group created history in Real Estate sector with GT it centered its attention over acquiring large land banks and turning them into amusement and hospitality hubs. At present the group is working upon building Malls and Hotels and is also pacing towards its mining business both in India and Abroad . REAL ESTATE PROJECTS OF THE COMPANY GAURAV TOWER In 1992, Mr. Bardiya brought in a revolution by organizing and planning a format where all the basic needs of a family were met under a single roof therefore helping the gentry to buy daily households, apparels, electronics and furniture etc. The further development of "Gaurav Tower" began in the year 1993; the first phase was completed in the year 1995 and the second phase in 1997. From past 15 years Gaurav Tower is the most happening place of Jaipur providing shoppers and tourists a total family shopping along with entertainment and food court with mouthwatering savories to serve the palate. Gaurav Tower is spread in area of around 2,00,000 sq. feet and covers a large variety of world- class brands of Apparels, Electronics, Furniture, Shoes & Accessories, Sarees & Dress Material, Jewelry, Infant shopping, Supermarket, Restaurants & Food courts etc. The Mall attracts an enormous footfall of about 20,000 people a day. ARCHITECTURE Gaurav Tower is an architectural masterpiece, the one that is naturally airy & well lit from all sides with spacious passages, courtyards, delightful fountains and huge spacious parking slots. An exceptional thing about the mall is its podium at the main entrance the one with an open area of around 20,000 sq. ft. It not only lends the full view of the mall but also provides ample space for people to hang around and have fun with their friends and family. GT BAZAR It is the biggest market of Jaipur local vendors that has state of the art vanilla stores, shops as well as hi-tech kiosks. These kiosks were previously known as small shops but Mr. Bardiya presented these Kiosks with a new concept in retail market with great ambience, atmosphere and placement. Today every upcoming project in the city is immensely inspired by the same concept. These shops cover a variety of products such as Apparels, Footwear, Toys, Mobiles, Bangles, Stationeries, Bags, Crockery, Artificial Jewelry, and Men‘s Accessories etc. BRAND PARTNERS Gaurav Tower holds the highest number of multi-national and national retail brands in the city such as Shoppers Stop Mc Donald‘s Raymond‘s Provogue Planet-M Woodland Bata Lilliput Planet Sports Gold's Gym Café Coffee Day Kaya Skin Vodafone State Headquarters Dream House & Aircon Furniture Ganesham Electronics and many more. SAFETY AND SECURITY The group has prioritized the safety and security as the chief concern and consideration. It has round the clock CCTV surveillance and state of the art fire fighting equipments. Periodic fortnightly drills are conducted to ensure & keep everyone prepared for any possible occurrence. Gaurav Tower maintenance society is exceptionally committed to safety and security and the people at GTMS keep reviewing the measures from time to time. GT CENTRAL Bardiya Real Estate Developers Private Limited, a company of Bardiya Group has now introduced a new Commercial Mall at Plot No. 4, Indira Place Malviya Nagar on Jawaharlal Nehru Marg, Jaipur. It is important to mention that Jawaharlal Nehru Marg has grown to be one of the finest & prominent roads of Jaipur City; situated primarily in the heart of Malviya Nagar which has the distinction of some of the best Commercial Projects of the State. Strategically located in the most happening locality of Gaurav Towers this area experiences a foot fall of over 30,000 people per day. GT Central will provide an excellent shopping experience to all its customers with a select mix of premium brands and retailers that will flaunt a maximum variety in fashion and lifestyle. This mall will fuel the long awaited requisite of this area through its three screens multiplex and its gaming zone. PROJECT SIZE AND DESCRIPTION The Total Size of the Project is around 1.5 lac sq. feet consisting of Lower Ground, Ground floor, First Floor, Second floor, Food Court and Three screens Multiplex. The building will also include lower basement parking and service floor. LOCATION The Location of the Mall is in one of the hottest shopping areas of the city. It is surrounded by projects like Gaurav Towers, Fortis Hospital, Genpact, Gold Souk, World Trade Park, etc. It is also very close to the new Airport of the city and many other MNC‘s too are fervent to set up new establishments in this area. In view of the same the definite advantages of the area cannot be ignored and the Group is not only enthusiastic to capitalize on the same but is also keen on providing both 'Quality and Value' to its customers. FUTURE PROSPECTS OF THE COMPANY 4 STAR HOTEL Malviya Nagar and JLN Marg have become the most important business hub of the city. Many Malls, Hotels, Corporate Buildings, Hospitals etc. have already started their operations in this area. In addition its vicinity to the new International Airport will also contribute to the increasing importance of this area. Keeping the above facts in view and looking at the future prospects, the group is planning a Business Class Hotel, which will find its shelter right opposite Gaurav Tower. Salient Features: 1. 80 Rooms (Deluxe & Suite) 2. One Fine Dining Restaurant & One Roof Top Specialty Restaurant 3. Banquet Hall 4. Spacious Lobby 5. Business Center 6. Shopping Center 7. Pub & Bar 5 STAR HOTEL Hotel Description: An ode to the cosmopolitan culture of Jaipur – this hotel unfolds the finest lifestyle experiences for you. Located in the up market JLN Marg area, strategically close to the Airport, the hotel will prove to be an exquisite blend of business and pleasure, a great place to confer, relax and pamper your senses. An extravagantly laid place, the hotel will comprise of 250 well-appointed guest rooms including 20 suites and 30 Club Royale rooms and will be an ideal venue to host meetings, conferences and banqueting along with three restaurants, 24 hours Coffee shop, Luxury Brands for Shopping and spa. Accessibility: Right opposite Domestic & International Airport; 3 kms from Durgapura Railway Station; 7 kms from Jaipur Railway Station; 7 kms from Bus Stand. RESORT & GOLF COURSE The GT Resort & Golf Course shall spread out the finest lifestyle experiences for you. Perfect to lend you a multi-ethnic feel, the resort plans to treat the luxurious side of you. The place will be an ideal scene for Parties, Golfing, Lodging, and Dinning. Its clubhouse will include all Marriages before Parties & many recreational activities for the golfer's family. RESEARCH METHODOLOGY WHAT IS RESEARCH? Research can be defined as a scientific and systematic search for pertaining information on a specific topic. We define research as systematic design, collection, analysising and reporting of data and findings relevant to a specific situation facing the company. The main aim of research is to find out the truth which has not been discovered yet. OBJECTIVE OF THE STUDY 4. To determine the customer‘s perception. 5. To determine the customer‘s expectations. 6. To determine the problems faced by the customer while investing for property. SCOPE OF STUDY The project undertaken makes me able to improve my professional skills and expertise. It helps me in getting an idea of Real Estate industry and its importance in our life. It increases my confidence on professional ground by dealing with high profile corporate that are very hard to convince. As for as company‘s benefit is concerned, this project helps company to know its market condition and level of competition. Also it helps in creating awareness to consumers regarding property documents and in promotion of their services. In order to accomplish the objectives of the project a survey has been conducted amongst customers of the real estate market. The survey is based on questionnaire filling method. The survey is restricted to the information needed to show legal, technical and financial transparency between project developer and customer. TYPES OF RESEARCH Exploratory and Descriptive. Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps in determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist. Its seeks to find out how people get along in the setting under question, what meaning they give to their actions, and what issues concern them. The goal is to learn what is going on here? On the other hand Descriptive research is aimed to find the complete description about an existing problem or phenomenon. RESEARCH DESIGN A survey research method was the basic research design. I interact with people through questionnaire filling method. Questionnaire is having questions regarding the respondent‘s basic information such as contact details, designation, what type of information they want from real estate project developer, what type of documents they check while buying or searching property. DATA COLLECTION METHOD 1. Primary data is collected through questionnaire method which is designed keeping in view the objective of the study. 2. Secondary data is collected through internet sources, research papers and published reports by various institutions for literature review. DATA ANALYSIS AND INTERPRETATION a. The profession of people I met….. Profession Frequency Percentage (%) Govt. service 031 15.5 Private service 158 79 Business 011 5.5 Total 200 100 During the survey I visited many Government and Private Offices to meet with people who can give me proper response of my questionnaire. I met with total 200 people out of which 15.5% (31) people are doing Government services , 79 % (158) people are doing private services and 5.5 % (11) people are doing business. My target was to meet service class people. profession type govt. services 15.5% private services 79% business 5.5% b. Age group…. Age of person I met with people having different age. But I chose to met people having age more than 30 years because it was assumed that they have bought some properties or they are in process of buying any. The people I have met most people belong to age group of 30 to 40 years and having 70% and people belonging to age group 25 to30 years having (least) 5%. People are in age group 41-50 years and more than 40years are having 25%. 0% 5% 10% 15% 20% 25% 30% 35% 40% 25-30 30-35 35-40 above 40 age group age group Q: Consumers preference of information related to property document from Real Estate web portal, past record of builders, and marketing details- Priority amongst the three Consumer preference Frequency Percentage (%) Property documents 174 87 Marketing details 15 7.5 Past records 11 5.5 Total 200 100 From the above we can conclude that before going to invest in real estate people generally look for the property documents which comes up to 87% of the total responses, then the marketing details and the past records come. 0 10 20 30 40 50 60 70 80 90 100 propety documents 87% market details 7.5% past records 5.5% priority among the three priority among the three Q. Do the Real Estate Developers give possession timely? Valid Frequency Percentage (%) Yes 76 38 No 105 52.5 Can‘t say 19 9.5 Total 200 100 The answer of majority was not in favor. Out of 200 people, 105 said ‗NO‘ to this comprising of 52.5% of the whole population. Whereas 76 said ‗YES‘ and rest were in two minds. opinion yes 38% no 52.5% can't say 9.5% Q: How much are you satisfied from real estate marketing information provided by real estate companies? Ratings Frequency Percentage (%) Highly satisfied 2 1 Satisfied 62 31 Neutral 40 20 Dissatisfied 93 46.5 Highly dissatisfied 11 5.5 Total 200 100 ratings highly satisfied 01 satisfied 31 neutral 20 dissatisfied 46.5 highly dissatisfied 5.5 With the help of above pie chart and table it is clear that majority (46.5%) of people are dissatisfied and very less proportion (1%) of people are highly-satisfied with the marketing information provided by the real estate companies . Many people who are satisfied with the marketing information provided by developer , they were saying that Real estate companies does not want to share each marketing detail but also some real estate companies does not want to hide any marketing detail if customers asking about them. 20% people are neutral, 31 % people are satisfied and 5.5 % people are strongly dissatisfied from the marketing details provided by the real estate companies. The reason of this strange result in simple languages is as follows- 1. Builders do not give complete marketing information in their broacher. 2. Marketing information provided by real estate developers is condition based. 3. In the marketing information broacher, developers do not share the negative side of project. 4. The paper work is a bit different from that of the actual work. Q: What source of information do you prefer while buying/ searching for a property? Source Frequency Percentage (%) Print media 85 42.5 T.V. / Radio 15 7.5 Internet 21 10.5 Personal reference 50 25 Broker 29 14.5 Total 200 100 The above Table and chart shows that most of the people prefer Print media (42.5%) and personal reference (25 %) for searching house or property. And other sources like Internet, Broker, TV & Radio, Outdoor advertisement are having 10.5%, 14.5% and 7.5% respectively. Print media is the most popular means as respondents opines that it is the most inexpensive, convenient and easy source of information. 0 5 10 15 20 25 30 35 40 45 print media t.v./ radio internet personal reference broker source of information source of information Q: Do you prefer to invest for long term or short duration? Duration Frequency Percentage (%) Long term 146 73 Short term 54 27 Total 200 100 The above table and chart shows that people are more interested in long term investment i.e. 73% whereas 27% of respondents are interested in short term. Many of the respondents like the idea of long term that can fund them at their retirement. Real estate will typically increase in value as time goes on. 0 10 20 30 40 50 60 70 80 long term short term duration of investment duration of investment Q: Which option gives you more return? Option Frequency Percentage (%) Mutual fund 30 15 Fixed deposite 60 30 Real estate 75 37.5 Share /commodity market 45 22.5 Total 200 100 With the above pie chart and table, it is interpreteted that out of 200, 37.5% people thinks that real estate investment gives them better returns. Whereas 30% people thinks fixed deposites, 22.5% stock/ commodity and 15% thinks mutual funds gives more return. This infers the trust and the interest of the investors in Real estate sector. People are willing to invest in real estate be it a large investor or small all of them try to invest in real estate sector in the ways convenient to them. options mutual funds fixed deposites real estate stock/commodity market Q: Reason for investing in Real Estate- Reason Frequency Percentage (%) Gives good returns 90 45 Less risk 42 21 Easy loan facility 68 34 Total 200 100 From the above table and chart it is concluded that respondents are investing in real estate as it provide them good return. About 45% people invest because of good return and 34% respondents invest because of easy loan facility, rest believe that it is less risky. 0 10 20 30 40 50 good return less risky easy loan reason for investment reason for investment Q: What problems have you faced while dealing with real estate dealers? There were varied Responses to this question 1. Majority said that they wanted to get rid of the brokers. 2. Some said they wanted the Developers to display their complete information on line and to the customers. 3. There were people who wanted Hidden costs to be absent. 4. Some wanted to get rid of the false promises. 5. Almost all of the people wanted that the Developers should show transparency and provide them with each and every form of information which they wanted. SWOT ANALYSIS Strength s – 1. Team of professional having technical expertise, past experience in the field of marketing, Finance, Project audit and Media for real estate sector. 2. A wide range of services on web portal compared to the other web portals. 3. By creating awareness regarding the Marketing details, legal and technical document of the project make consumer more satisfied. 4. Wide network. 5. Fast adaptability to technology. Weakness – 1. Lack of project developer‘s support in providing the legal and technical documents. 2. Shortage of labour. 3. Approval and procedural difficulties. 4. Rising material cost. Opportunities – 1. The growing population of India. 2. People are becoming more aware. 3. Rapid urbanization. 4. Increasing trust of people on real estate web portal. Threats – 1. Tough competition. 2. Some illegal services provided by the Broker. 3. Government policy. FINDINGS Most of the people are dissatisfied from the real estate marketing information provided by the real estate companies, but very few people are strongly satisfied.. Most of the people have chosen PRINT MEDIA as a source of information while buying or searching for a property. People who have chosen internet, print media, brokers, and personal reference as a source of information for searching property are more satisfied compare to the other sources of information. Most of the people chose information related to the property documents as their first preference compared to the marketing details of the project, past record of builder and new policies of govt. related to real estate sector. Most of the people know only the names of few property documents and they check only these documents while searching a property. A number of builders do not want to show the property documents to the customers. Most of the people want to invest in real estate for a long term period. Most of the people invest because it provides them good return. CONCLUSION Now a day‘s people who go for investing in a real estate have become more aware about what they should look for and the information they should seek, and are more concerned about the selection of the right type of property for them. But majority of the people are still unaware of the documents which they should look for before going to invest. Here I have collected the perception and analyzed the expectations of the general public as a whole. The conclusion thus is that 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. Thus because of the above reasons there is a need to create awareness among the customers as well as project developers to give the customers the complete information. SUGGESTIONS – On the basis of my findings, I want to make certain recommendations as follows – Recommendation to Bardiya Real Estate developers Pvt. Ltd. – 1. 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. 2. Company should provide information according to people‘s need and necessity. And for that they can open daily polling on their web portal. 3. 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. 4. Company should make more contact with contractors and Architects to tap more builders. LIMITATIONS – 1. Un-availability of the desired personnel was the biggest constraint to this study. Although appointments were made and followed up where possible but still there were instances where the desired people were either unavailable or unwilling to meet. 2. No prior information regarding the addresses or other details of the offices to be visited was provided, thus a few target persons were left uncovered. 3. Some dealers were hesitating to give supportive data. Some of them ignored the questions which were supposed to be filled by them. Thus, affecting the scientific accuracy. BIBLIOGRAPHY – Bibliography includes references, books, magazines, web sites and newspapers that are used during any research. I used following bibliography during my research project. Books Kothari, C.R., Research Methodology, New Delhi, New Age International Ltd. Kotler Philip, Marketing Management, 2003 Edition, ―New Delhi‖, prentice hall of India. Schiff man, L.G, kanuk, L.L,‖Consumer behavior”, Pearson education, year 2003-04, seventh edition www.magicbricks.com QUESTIONAIRRE A study of Customer Perception in real estate with specific preference to commercial sector Name : ……………………………………………… Proffession : a) Govt. service b) Private service c) Business Designation :……………………..Name of Company……………………………... Contact no..................................... Email…………………………………………… Age (in yrs): 25-30 30-35 35-40 more than 40 Rank the following detail according to their importance at the time of purchasing a property?(Rank1 to the most important, 3 to least) a) Property document b) marketing details of builder c) past record Do you think real estate developers gives possession timely? a) yes b) no c) can‘t say How much are you satisfied from real estate marketing information provided by real estate companies? a) Highly satisfied b) satisfied c) neutral d) dissatisfied e) highly dissatisfied What source of information do you prefer while searching for property? a) Print media b) T.V. / Radio c) internet d) personal reference e) broker Do you prefer to invest for long term or short duration? a) Long term b) short term Which option gives you more return? a) Mutul funds b) fixed deposites c) real estate d) share/commodity market Reason for investing in real estate- a) Gives good return b) Less risk c) Easy loan facility What problems have you faced while dealing with real estate dealers? ………………………………………………………………………………………………………