PROJECT REPORT

ON

FEASIBILITY STUDY OF A NEW RESIDENTIAL CONSTRUCTION SITE AT

PRAHALADNAGAR

IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE PROJECT STUDY COURSE OF TWO YEAR (FULL TIME) M.B.A.

PROGRAMME

PROJECT GUIDE: PROF JUHI SHAH

SUBMITTED BY:

CHETAN CHOTAI (8019)

NEHA PODDAR (8078)

SUBMITTED ON:

20TH MARCH 2010

N.R. INSTITUTE OF BUSINESS MANAGEMENT

AHMEDABAD

2008-2010

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CERTIFICATE

N.R. INSTITUTE OF BUSINESS MANAGEMENT

(GLS-MBA)

This is to certify that Mr. Chetan Chotai Roll no. 8019 and Miss Neha Poddar Roll no.

8078 students of N.R. Institute of Business Management (GLS-MBA) have

successfully completed the grand project on FEASIBILITY STUDY OF A NEW

RESIDENTIAL CONSTRUCTION SITE AT PRAHALADNAGAR in partial

fulfilment of the MBA programme of the Gujarat University. This is the original work

and has not been submitted elsewhere.

Date: - 20th March 2010 PROF. JUHI SHAH

Place: - Ahmedabad DR. HITESH RUPAREL

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PREFACE

In today’s competitive environment, survival of the fittest is the new motto. That is why it’s

necessary that the theoretical knowledge is accompanied by practical knowledge. In an MBA

programme, project study forms an important and an integral part. It helps in bridging the gap

between the two main important aspects the theoretical as well practical knowledge.

The real estate development sector encompassing the residential townships, commercial

offices, IT parks, shopping malls, entertainment centers, multiplexes, hotels and restaurants,

industrial buildings, factories and government buildings is witnessing an unprecedented

growth. There is a spurt in suburban development of real estate for mixed use of land

including residence, office, retail shops, schools etc. Real estate sector in India is the

second largest employment generator next only to agriculture. About 250 ancillary

industries directly or indirectly depend on real estate activity.

The GDP contribution of this sector at current prices is approx. 6.5% or Rs.1, 37,000 crores

i.e., over 30 billion US dollars. Indian realty sector is estimated to grow from US$ 15 billion

in 2005 to US$ 90 billion by 2015. Similarly the commercial property market has

compounded annual growth rate of over 30% during the last 5 years across major cities in

India along with a phenomenal increase in demand for office space.

Ahmedabad, India’s seventh largest city is experiencing a tremendous growth in its real estate

sector. The demand for property has been witnessing a steep rise and this has resulted in the

escalation of the number of real estate investments. Though the city has a vast potential, it has

certainly not made the kind of waves that Pune, Hyderabad or Kolkata have in recent times.

That may just be the reason to take a serious look at it while land prices are affordable.

Prahaladnagar area in Ahmedabad has created a buzz for all the real estate players with

majority of them coming up new and innovative concepts relating to residential and

commercial property.

This report is made with the intention of understanding the real estate sector in Ahmedabad with

special emphasis on Prahaladnagar area and “To check the feasibility of commencing a new

construction site at Prahaladnagar, Ahmedabad”. We have done work to the best of our knowledge

and sincerity. In spite of our best efforts, there may be errors or omissions and commissions in the

project for which we take full responsibility

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ACKNOWLEGEMENT

A successful project is fruitful culmination of efforts of many people, some directly

involved, and others who have quietly encouraged and extended their support, while being in

the background. We take this opportunity to extend our deep sense of gratitude and heartfelt

thanks to all those who have helped us directly or indirectly during the course of our project.

First of all, we would like to thank our project guide Ms. Juhi Shah for her invaluable support

and guidance throughout the semester.

Lastly I would like to thank my institute, N.R. institute of business management including all the

staff members and participants for providing their assistance for the project.

DATE: 20-03-2010 Chetan A Chotai (8019)

PLACE: AHMEDABAD Neha P Poddar (8078)

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EXECUTIVE SUMMARY

India Real Estate is the second largest industry next only to agriculture in terms of the

contribution it makes to the gross domestic product (GDP) and the employment generation.

Moreover, its share of contribution to the country’s GDP is expected to increase only in the

years to come.

According to a report, India is one among the four countries (the other three being Brazil,

Russia and China) that are likely to achieve a much faster growth rate in the domain of

property development and housing construction activities as compared to the UK and US real

estate markets. The BRIC report, as it is called, has also projected a higher real estate

investment over a period of the next five years. The forecast for the year 2010 has put a

significant portion of the Foreign Direct Investment (FDI) towards investment in the Indian

real estate market.

Some of the leading real estate developers that have made a mark in India include corporate

names, such as Sahara India, Aditya Birla, Tata, Godrej and Reliance Group, to name a few.

Apart from that, there is a whole list of real estate developers that have given a new

dimension to the housing and infrastructure development and placed India on the map of

World real estate. Some of these builders and property developers include the names of DLF,

Emaar MGF, Ansals, Raheja, Omaxe, Shipra, Arun Dev, Eros, JayPee, TDI, Prestige,

Parsvnath, Vatika, Unitech, Vipul, Eldeco, Mapsko, Triveni and Kumar, to name just a few.

Moreover, every state and some of the major cities of the countries have housing or

development authorities that build and provide affordable housing solutions to home seekers

from lower- and middle- income group. The most sought after housing authorities and their

latest residential projects in India include Delhi Development Authority (DDA), Maharashtra

Housing & Area Development Authority (MHADA), Ghaziabad Development Authority

(GDA), Haryana Urban Development Authority (HUDA) and Lucknow Development

Authority (LDA), just to mention a few.

Ahmedabad, India’s seventh largest city is experiencing a tremendous growth in its real estate

sector. The demand for property has been witnessing a steep rise and this has resulted in the

escalation of the number of real estate investments.

5

Builders in the city are finally catering to the demand of the middle income group, with

affordable housing in the range of Rs 10 lakh to Rs 25 lakh for a two or three bedroom-hall-

kitchen (BHK) flat.

Up till now, plenty of high-end apartments were available in the above-Rs 50-lakh range and

those worth less than Rs 5 lakh would have to come up in the villages. The gap between Rs 5

lakh and Rs 10 lakh is huge but it is gradually being filled up.

The new areas of Ahmedabad are been explored by the builders as there is hardly any place

left in the heart of the city. The builders are moving toward the suburbs like Prahaladnagar,

Thaltej, Bopal, Chankheda and many such areas to launch their prestigious and concept based

design schemes. These locations are very well connected to the various other areas of

Ahmedabad and are surrounded with lush greenery all around. The inclination of the

customers towards these areas is increasing and so the builders are tapping these

opportunities that are present. As a result in the current phase we can they see the launch of

very extravagant schemes in this area.

Moreover, the concept of Affordable housing catering to the middle income group is peaking

up in the city. Builders are providing 2bhk or 3bhk flats in the most affordable prices that

would suit the pockets of the middle income segment. Along with providing affordable

housing the builders are providing world class amenities in their schemes keeping the

affordable housing in mind.

The project aims to conduct the feasibility study of the new Residential Construction site that

is coming up at Prahaladnagar. As a large number of projects are coming up in this area the

feasibility study of any new proposed project becomes necessary. The feasibility study

includes the financial, marketing and the technical analysis. Our focus was only on the

financial and the marketing feasibility the technical feasibility is outside our scope of study.

The project was started with a descriptive research. The research included the various

revenues and the expenses that would be there in the proposed project. The duration of the

completion of the project was calculated and on the basis of that the various costs and the

receipts were estimated. On the basis of the various figures, the projected balance sheet,

Income statement and the cash flow statement was prepared. After the projection was done in

order to check the feasibility NPV of the project was calculated.

6

After the financial feasibility, the exploratory research started. The questionnaire was used as

an instrument for the exploratory research. This research was used to find out the various

factors that affect the new property buying decisions of the customers. In addition to that the

review of the customers for the Prahaladnagar area was also taken and the rates in which they

would prefer to buy affordable housing in that area.

After the study of both the financial and the marketing feasibility the correlation was

developed as to whether it is feasible to go ahead with the project or not. The totally

feasibility was conducted and the result was derived.

The all the figures and the statistics that were necessary for the calculations in the financial

feasibility are being taken as per the rates that were best available in the market. And the

readymade information regarding the things that would be consumed were provided by the

company who gave us the opportunity to go for this project.

The marketing feasibility was done in the form of Questionnaires. The primary data was

collected by the various walk-ins that are there in the various construction sites in the

upcoming area. The feedback obtained from these questionnaires was then used for further

analysis using SPSS software.

From the research we can say that the new proposed project is feasible both financially and in

marketing terms. The NPV of the project is positive thus giving a sign that the project can be

started and undertaken. Through the marketing analysis customers gave highest preference to

the Prahaladnagar area and are ready to buy the flats in the price range that is being proposed

in the project.

This Executive Summary is the highlight of the whole project report to get more detail, please

go through the report.

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CONTENTS

1. Research Methodology 9

1.1 Main Objective 10

1.2 Sub Objective 10

1.3 Research Study 10

1.4 Research Method 11

1.5 Limitations 11

1.6 Data Sources 11

1.7 Sample Design 12

1.8 Tool for Data Analysis 12

2. Industry Overview 13

2.1 Introduction to Real Estate Industry 14

2.2 Key Drivers of Real Estate 15

2.3 Real Estate Market 2010 16

2.4 Top Real Estate Players in India 17

2.5 Global giants in Indian Real Estate Sector 28

2.6 Changing Scenario of Real Estate in Ahmedabad 31

2.7 Current Real Estate Projects In Ahmedabad 33

3. Scope of Study 35

4. Introduction to Poddar Group 38

5. Analysis 42

5.1. Financial Analysis 45

5.2. Marketing Analysis 64

6. Findings 121

7. Conclusion 123

BIBLIOGRAPHY

ANNEXURE: Questionnaire for Descriptive research

8

1.

RESEARCH

METHODOLOGY

9

1.1 Main Objective

Important objectives of the study are:-

To conduct the feasibility study of the new residential construction site at

Prahaladnagar.

To financially study the feasibility of the upcoming project at Prahaladnagar

To analyse the various preferences of the customers regarding their buying

decision for a new property.

1.2 Sub Objective

Sub Objectives of the research are recognized as below:-

To find out the preferences of the customers regarding the New Prahaladnagar

area in Ahmedabad.

Importance of the various factors that affect the purchase decision of a new

residential through a consumer survey.

1.3 Research Study

The scrutiny was basically to find out the feasibility of the new residential site at

Prahaladnagar. Prahaladnagar being the new upcoming area a lot of projects are launching or

are in the pipeline for launching. The main crux of the study is to find out the feasibility study

of one such residential construction site at Prahaladnagar. The research study includes both

the financial and the marketing feasibility of the new construction project. The financial study

inculcates the projected balance sheet, profit and loss account and the cash flows of the

project over a period of time. In order to check the feasibility study we also calculated the

NPV of the project. In order to unfold the picture, marketing feasibility of the upcoming

project was also done. The sample was selected in order to narrate the non – fictitious story of

the factors that the consumers take care for while selecting a new property and to find out the

opinions of the people for the New Prahaladnagar Area. The sample size aroused as or due to

the limitation of the research. These consumers were surveyed at various construction sites in

the most upcoming areas of Ahmedabad mainly the walk ins that were there on these sites

where they were asked questions related to the topic and the questionnaire was filled up.

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1.4 Research Method

The research is both exploratory and descriptive in nature. The exploratory research deals

with where the researchers have found the factors that have led to the growth of the real

estate sector in India and in Ahmedabad especially. It also includes the various factors that

are included in both the financial and the marketing feasibility. With the help of the research

obtained through explorative research, Prahaladnagar area which is an upcoming area in

Ahmedabad was chosen and in that a quantitative analysis and a descriptive research with the

help of a structured questionnaire were done in order to know the Feasibility study of a New

Residential Construction site at Prahaladnagar.

1.5 Limitations

Research method that was applied was questionnaire and so all the limitations related to the

questionnaire also accompanied the study. Some of the limitations of the questionnaire and

their study were:

a) Due to the constraint of the demographics the analysis for the potential prospects from

each of the area of Ahmedabad couldn’t be re4ached through.

b) The method that we have used for the financial analysis is not my expert analysis it’s

on the basis of my academic knowledge there can be other methods too for analysing

the feasibility.

1.6 Data Sources

Primary sources of data:

Questionnaires

Secondary sources of data:

It was collected in form of comprehensive literature along with the use of internet for

published research papers in the same sector of the present research done.

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1.7 Sample Design

Sampling Geography: Upcoming areas of Ahmedabad

Sampling Frame: customers who are looking to purchase a new house

Sample size: 200

Sampling type: Convenience Sampling

1.8 Tools for Data Analysis

For financial analysis the Discounted Flow Method was used and for the Questionnaire chi-

square and cross tab analysis was applied to remove the lines of confusion and to clarify the

picture. Computer software Statistical Package for social Science (SPSS 7.0) was used to

analyze the data.

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2.

REAL ESTATE

INDUSTRY

OVERVIEW

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1.1. INTRODUCTION TO REAL ESTATE INDUSTRY:

India Real Estate is the second largest industry next only to agriculture in terms of the

contribution it makes to the gross domestic product (GDP) and the employment generation.

Moreover, its share of contribution to the country’s GDP is expected to increase only in the

years to come.

The GDP contribution of this sector at current prices is approx. 6.5% or Rs.1, 37,000 crores

i.e., over 30 billion US dollars. Similarly the commercial property market has compounded

annual growth rate of over 30% during the last 5 years across major cities in India along with

a phenomenal increase in demand for office space. To be more precise, the next five years

will see a rise of six percent from its present share of five percent contributed towards the

GDP.

 The size in terms of total economic value of real estate development activity of the Indian

real estate market is currently US$40-45bn (5-6% of GDP) of which residential forms the

major chunk with 90-95% of the market, commercial segment is distant second with 4-5% of

the market and organized retail with 1% of the market. Over next five years, Indian real estate

market is expected to grow at a CAGR of 20%, driven by 18-19% growth in residential real

estate, 55-60% in retail real estate, and 20-22% in commercial real estate.

According to a report, India is one among the four countries (the other three being Brazil,

Russia and China) that are likely to achieve a much faster growth rate in the domain of

property development and housing construction activities as compared to the UK and US real

estate markets.

The BRIC report, as it is called, has also projected a higher real estate investment over a

period of the next five years. The forecast for the year 2010 has put a significant portion of

the Foreign Direct Investment (FDI) towards investment in the Indian real estate market. 

14

1.1 KEY DRIVERS OF REAL ESTATE

Economic Growth

• GDP growth rate of ~8-8.5%

• Double-digit income growth rate for the next 3-4 years

• Income growth should improve affordability, driving demand for residential units

• Lower interest rates

Demographics and Urbanization

• Positive demographic trends - middle class or the aspirers to show a CAGR of

10.4% to reach 124m in 2013 compared to 46m in 2003

• Urbanization – UNDP forecasts urban population will constitute about 40% of total

population by 2030 from the current about 28%

• Indian household families moving from joint families to nuclear families

Favourable Interest Rate and Fiscal Incentive

• Housing loan interest rate, despite the recent rise, continue to remain low compared

to 15-16% in the 1990’s

Growth in the next decade should come from Tier II/III cities

• Higher real-estate prices in Tier I cities coupled with manpower and infrastructure

issues may force companies to look at Tier II and Tier III cities for expanding their

operations

o Tier I cities- Mumbai, Delhi and Bangalore

o Tier II cities- Kolkata, Hyderabad, Pune

o Tier III cities- Nagpur, Ahmedabad, Indore, Lucknow, Jaipur

• Within the next three to six years, towns and cities such as Chandigarh, Jaipur,

Mysore, Indore, Coimbatore, Vishakhapatnam, etc are likely to see an increase in

real-estate demand from the IT/ITES sector

• According to Nasscom’s projections, Tier II and Tier III cities, which account for

about 29% and 5% of the total commercial space in FY07, respectively, will increase

to 44% and 20% at the end of FY17

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1.1 Real Estate Market 2010  

When the industry comprising the IT and ITES sectors grows, the demand for commercial

properties will rise, along with the ever-increasing demand for residential houses that has

always kept the momentum of the housing development market in motion in India. The year

2010 is all set to witness an extraordinary rise in commercial real estate fulfilling increased

demands for office space and retail industry.

Though the demand for commercial real estate has increased over the years, the residential

property market drives the builders and other professionals engaged in the industry for more

in construction and service related activities. The Tenth Five Year Plan has put the gap in

the demand and supply of housing units for the current year to over 22.4 million units, which

is likely to become 90 million over the next 10 years. The housing construction industry is

thus geared to meet the whopping demand that the country is going to face in this segment in

future. 

As the demand is more for affordable homes, the state-sponsored housing authorities have

come to play a major role in fulfilling the housing requirements for lower- and middle-

income groups. A number of housing solutions in the forms of 2, 3 and 4 BHK flats, studio

apartments, condos and town homes are being created with active support from the private

construction companies and real estate investors. The current scenario has given an impetus

to the ongoing residential construction boom by government housing authorities as well as

private builders across the major locations of the country including all Tiers-I and Tier-II

cities.

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2.4. Top Real Estate Players Of India

DLF INDIA

DLF Limited is India's largest real estate company in terms of revenues, earnings, market

capitalization and developable area. It has a 62-year track record of sustained growth,

customer satisfaction, and innovation. The company has approximately 238 msf of completed

development and 423 msf of planned projects, and has pan India presence across 30 cities.

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

company has a unique business model with earnings arising from development and rentals.

Its exposure across businesses, segments and geographies, mitigates any down-cycles in the

market. DLF has also forayed into infrastructure, SEZ and hotel businesses.

DLF pioneered the retail revolution in the country and brought about a paradigm shift in

the industry by redefining shopping, recreation and leisure experiences with the launch of

City Centre in Gurgaon in 2000. The Retail Malls business is a major thrust area for DLF.

Currently, DLF is actively creating new shopping and entertainment spaces all over the

country. The company has land resource of 92 msf for office and retail development, with 17

msf of projects under construction.

Built on a foundation of strong lineage and an established reputation, DLF Home

Developers, the residential business group of DLF, has been a trendsetter in contemporary

urban development and housing. These developments have always been all embracing with

comprehensive solutions for eminent and quality living.

DLF has pioneered some of the best-known urban housing and retail destinations in Delhi

including South Extension, Greater Kailash, Rajouri Garden, Model Town, Hauz Khas and

Kailash Colony.

Featuring International standards geared to serve customer needs, the Group's complexes are

truly a reflection of quality living and contemporary lifestyles. The product categories of the

Group deliver the synergistic strengths of good architecture, appropriate designs, impressive

aesthetics and safety features.

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NEW PROJECTS

DLF Capital Greens,Phase III

New City HeightsHyderabad

 

DLF ValleyPanchukla

The BelaireGurgaon

 

DLF Park PlaceGurgaon

DLF River ValleyGoa

 

DLF Capital Greens,Phase II

DLF Capital Greens,Shivaji Marg, Delhi

 

Westend Heights,BTM Bangalore

New Town HeightsDLF Kakkanad

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Express GreensDLF New Gurgaon

GardencityDLF New Indore

 

GardencityDLF OMR, Chennai

Townhouses and Independent FloorsNew Town Heights

 

New Town Heights Gurgaon

New Town Heights DLF Rajarhat, Kolkata

 

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RAHEJA GROUP

K Raheja Corp is a success story spanned across decades and continues to achieve higher

targets relentlessly for quality performance and service in diverse fields of real realty

business, hospitality sector and retailing outfits.

The group has made an impact on the supply side of the modern day living. A style that has

been the dream of new class of consumers, a style encompassing the whole range of

consumption pattern of the young and the upcoming consumers that has become synonym

with the brand K Raheja Corp.

The group has pioneered the trend of setting world class hotels and convention centres across

the country with enhanced facilities to meet the business and leisure needs of the international

and domestic traveller.

The higher standards set by the group in its pursuit to position India on par with the

developed economies of the world and with a vision to be and remain at the commanding

height of Real Estate Business.

Sensitivity to consumer needs is the inspiration to creating distinct home. Over the years, we

have created projects that add real value by offering a host of amenities that enhance the

quality of life.

One excellent example is like the illustrious Raheja Vihar: a luxurious, self-contained

township in Mumbai. This township was the proud recipient of 'The Clean and Green

Mumbai' Mayor's Cup.

Yet another prestigious venture is Mindspace. It is India's most advanced and luxurious

business cum residential community, designed with the help of global consulting expertise

and attention to the minutest detail.

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Their proposed development at Mahalaxmi, Mumbai is specially created for a pleasant urban

lifestyle, with hotel - like ambience and well - appointed facilities.

Each developments of the Raheja Group offer the best of amenities reflecting the unique class

and quality that K. Raheja Corp stands for, and thus making them the most livable homes

available.

RESIDENTIAL PROJECTS COMPLETED BY RAHEJA TILL NOW

Maple Leaf, Mumbai

Raheja Vistas, Mumbai

Raheja Vistas, Pune

Vivarea, Mumbai

Raheja Vistas, Nacharam, Hyderabad

PROPOSED SITES

Worli, Mumbai

Vivarea Kormangala, Bangalore

Villas & homes - Pirangut, Pune

Villas & homes, Kadamba, Goa

PARSVNATH BUIDERS

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There are few parallels in the annals of the Indian real estate and construction industry that

emulate the success trail blazed by Parsvnath Developers Limited. Over the past two decades,

the company has emerged as one of the most progressive and multi-faceted real estate and

construction entities in the country. Through the years, Parsvnath have stayed true to their

commitment to `building a better world’ by transforming barren tracts into landscaped green

belts housing world class commercial, residential and recreational properties.

Parsvnath is a company whose business philosophy lies in the commitment to creating

architectural marvels using state-of-the-art technology and global architectural, construction

and business practices. They are passionate about providing cost-effective and holistic

solutions for their customers while creating and adding value for their partners and

stakeholders. The unwavering focus on these factors catapulted Parsvnath Developers

Limited into the top echelons of the Indian Real Estate and Construction Industry in 2007.

With a pan-India presence in over 47 cities in 16 states, they are steadfastly focused on

continuing to create and build dreamscapes that transform lives and the world around us – be

it through contemporary residential spaces, state-of-the-art office complexes, affordable

housing, luxurious, shopping malls and hypermarkets, posh hotels, futuristic multiplexes, and

ultra modern IT Parks and special economic zones.

In the last two decades, the group has created edifices of magnificence through the length and

breadth of the country by successfully completing 39 projects. Today, Parsvnath with its high

commitments has become synonym for perfection, innovation, customer satisfaction,

transparency and developing high end luxury, affordable & value for money projects.

Parsvnath Developers Limited is an ISO 9001, 14001 and OHSAS 18001 certified company.

FORTHCOMING PROJECTS

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Group Housing Projects

Projects  Location

Parsvnath Royal Floors Goa

Parsvnath Prominence  Bhiwadi

Project Located at Panipat Haryana

Project Located at Khekhra  Uttar Pradesh

Group Housing at Kundli Haryana

Group Housing at Chennai Tamil Nadu

Group Housing at Sonepat Haryana  

Townships

Projects  Location

Parsvnath City Rohtak

Parsvnath City Kurukshetra

Karnal

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PACIFICA COMPANIES

Pacifica Companies is multi-talented Real Estate Property Development Company. Founded

in 1978 by Ashok Israni, Pacifica's vast Real Estate portfolio includes Hotels, Office

Buildings, Industrial Buildings, Condos, Retail Shopping Centres, Apartment projects,

Mixed-use Developments, Residential Communities, and Land Development Projects in US

as well as in India.

Corporate headquarter for Pacifica Companies is located in San Diego, California and other

offices in Austin, Tampa and Riverside.

Pacifica companies started its Indian operation in 2004-05, with head office in Ahmedabad &

regional offices in New Delhi, Bangalore and Hyderabad. These offices are well poised to

meet their vision of establishing a national leading position in the real estate industry,

spanning the spectrum of all real estate development. Pacifica brings along with itself 30

years of experience in real estate to India. With the rationalized Foreign Investment Policies

in India, the real estate/property developer has targeted several Indian Cities for its projects.

There are a lot of world class Residential sites that are coming in Ahmedabad. With innovative

designs and the luxuries customized to the needs of the customers PACIFICA companies are

accustoming to the needs of the customers.

2 Ahmedabad Residential Project

 

The Pacifica Ahmedabad Residential Project is being developed in close proximity to the

Sarkhej - Gandhinagar highway on the rapidly developing western parts of the city.

This Luxurious Apartment project is located at Prahaladnagar which is one of the most affluent areas of

Ahmedabad.

Luxurious Condominiums with all the amenities like swimming pool, Club House with gym,

etc is planned.

Lots of open and green spaces found in the Project.

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OMAXE GROUP

Incorporated as Omaxe Builders Private Limited in 1989, to undertake construction &

contracting business, the company changed its constitution to a limited company known as

Omaxe Construction Ltd., in 1999. The name of the company has now changed to Omaxe Ltd

in 2006.

Omaxe was founded by Shri. Rohtas Goel, a first generation entrepreneur, a civil engineer by

qualification and a visionary. With over two decades of experience in construction and real

estate development, Rohtas Goel, as Chairman & Managing Director of Omaxe Ltd., has

been at the forefront of the real estate industry, following its motto “Turning Dreams into

Reality” through building world class residential and commercial projects.  

As a civil construction and contracting company, Omaxe successfully executed more than

one hundred and twenty industrial, institutional, commercial and residential projects for a

number of prestigious Indian private, public sector and Multinational's clients such as Amity

University, LG, Pepsi, Samsung, Wave Cinemas, National Brain Research Centre, P.G.I.

M.E.R, Apollo Hospitals and Delhi High Court.

To capture the opportunities offered by the growing real estate market in India, Omaxe

entered the real estate development business in 2001. In the span of a few years, Omaxe Ltd.

has experienced exponential growth and success, crowned by its landmark IPO

oversubscribed by 68 times in 2007, and is now amongst the largest public-listed real estate

development companies in India.

By the end of 2007, the company has completed and delivered eleven projects consisting of

eight residential, one integrated township and two commercial, covering 5.6 million sq. ft of

area. 

The Forest, The Nile, NRI City, Omaxe Connaught Place, Wedding Mall, House 2 Home,

Omaxe Plaza, Omaxe Arcade, Park Plaza, Pearls Omaxe, Omaxe Jasola, Omaxe Novelty

Mall, Omaxe Terminal Mall and Omaxe Mall - Ludhiana are some of the milestone projects

25

of the company.

The company currently has fifty four projects under development, including hotels: twenty

three group housing projects, sixteen integrated townships, fourteen shopping malls and

commercial complexes. These fifty four projects cover a total of over 156 million sq ft of

area and are located in 31 towns in 10 states in northern, central and southern India. In

addition to these, Omaxe is developing a Special Economic Zone on 12, 500 acres in Alwar

Rajasthan. Omaxe is also spreading its wings off shores and has acquired land in Dubai

through a wholly owned subsidiary.

Thanks to its strong experience in construction, Omaxe’s uniqueness also lies in the fact that

the company doesn't give its projects on sub contract: while assuring timely completion, this

also allows keeping pace with the progress in construction technology, helping to give clients

“value for money”.

Today, OMAXE enjoys a reputation of being one of India's leading real estate developers

with an indelible focus on customer satisfaction. Omaxe has adopted quality system standards

that integrate technological and design innovations with a strong technical base to provide

state-of-the-art real estate options. Omaxe has also been the first to:

offer Penalty Clause,

introduce Sample Flats concept,

offer Theme Malls, like the Wedding Mall, House 2 Home Mall, etc.,

offer ready-to-move-in homes.

Besides this, Omaxe is the first to have created and implemented the concept of Eco Friendly

City, integrating Environment Protection Measures in all projects, with a defined

implementation process

For Omaxe, environment protection and innovative architecture and practices are the standard

of today and tomorrow’s in real estate development.

26

Residential

Omaxe Group is one of the leading real estate development and construction company with

footprints in Townships, Group Housing, Commercial-Shopping malls, Office spaces, Hotels,

Bio-Tech Parks, IT Parks, SEZs and a presence in 31 towns in 10 states in northern, central

and southern India. There are around 40 group housing and integrated township projects,

which are either under construction or planning stage. Omaxe, the most innovative developer,

was first to introduce the concept of sample apartment, the concept of ready-to-move-in

homes and the concept of luxury apartments & penthouses.

They wish to invite prospective customers who intend to develop their manufacturing and

processing facilities as part of this dedicated park. The employees of such facilities would be

largely benefited as they may ‘walk – to – work’ while living in this modern and landscaped

township.

27

2.5. Global giants in India's real estate sector:

Global real estate business houses like the Philippines-based Ayala, and Signature group,

Och-Ziff Capital, EurIndia and Old Lane from Dubai are keen on sizeable investments in

India. And, investors in the UK, US, Israel, Malaysia and Singapore are also eyeing the real

estate sector in India.

• Tishman Speyer of USA and ICICI has formed a Special purpose vehicle called TSI

ventures and started the real estate development in the south India.

• US-based global investment bank Goldman Sachs and Unitech, the largest listed real estate

company in India, will set up a special purpose vehicle (SPV) with a corpus of US$ 208.7

million

• DLF Ltd is forging a 50-50 joint venture with Nakheel, a large property developer of the

UAE, for two integrated townships in India at a whopping investment of US$ 10 billion

• Zurich based Credit Suisse, the world's leading financial house, is in the process of

finalizing on a US$ 1 billion fund to invest in India

• Dawnay Day International, the US$ 10 billion UK-based investment company, plans to

invest US$ 1.5 billion in the next couple of years

• Hilton Hotels Corporation (HHC) announced a joint venture company with DLF Ltd to

develop and own 75 hotels and serviced apartments over 7 years

28

REAL ESTATE – AHMEDABAD

Ahmedabad, India's seventh largest city is experiencing a tremendous growth in its real estate

sector. The demand for property has been witnessing a steep rise and this has resulted in the

escalation of the number of real estate investments.

The city is increasingly becoming the next hot destination for domestic and alien investors,

thanks to burgeoning education centres, IT parks, and other manufacturing industries. Since

2000, the city has transformed through the construction of skyscrapers, shopping malls,

and multiplexes.

Ahmedabad has proven to be an ideal city attracting residential and commercial property due

to excellent infrastructure. The city commits to meet expectations of investors. The State

Government has envisaged of developing Ahmedabad into a world-class city through reforms

and infrastructure development. It forces to make the city clean, liveable, and productive has

translated into the setting up IT parks in and around the city.

Since the declaration of Ahmedabad as a mega city in the last Union Budget, the real estate

developers have geared up. The western parts of the city are booming areas for residential

properties in the city. Real estate has been charged by improvements in road and public

transportation and other infrastructure. Bungalows and apartments are coming upon the new

four-lane road developed from SG Road to the new Sardar Patel Ring Road.

As the every city of India, the size of the residential market has been estimated at over Rs

1500 crores per year. The residential property has been risen 10% to 15% on an average.

According to industry experts, it will go up to 20% to 40 %. The residential rates have been

increasing at alarm rate. The land prices in and around the city has doubled because of better

connectivity and wide roads. Market sources predict that around Rs. 700 crore will be

investing in mall segment in the next two years.

Ahmedabad’s commercial realty will experience a supply-surge of 3.6 mn sq ft in 2009-11

against the estimated demand of 2.5 mn sq ft; the oversupply will stabilize commercial

realty’s outright values at current levels in 2010. This is a key forecast of the 2010 realty

report issued by the Credit Rating and Information Services of India Ltd (Crisil). Though a

large number of Special Economic Zones (SEZs) have been planned in Ahmedabad and

29

Gandhinagar, the report does not expect them to come up in the 2009-11 period. As for the

oversupply in commercial realty, it has affected the retail lease rentals; that is the reason why

the rates are expected to settle down at current levels.

Retail lease rentals have declined sharply on the SG Road, raising the vacancy levels. The

average lease rentals on the SG Road declined by 20% during the March - November period

in 2009 and are expected to go down even more in the future. Crisil estimates that 1.9 mn sq

ft of retail supply will be available in the market in 2009-11, but the planned supply is 3.4 mn

sq ft. A majority of the upcoming malls are being developed in western Ahmedabad.

At any rate, retail lease rentals are expected to stabilize at current levels with a gradual pick

up in transactions being expected in 2010. Lakshmi Narayanan, the president and CEO of

Real Estate Bank International Ltd, (REBI), a national realty consultancy, agreed that there

was an oversupply in the city’s commercial space. He said, however, there were chances of

growth in the coming period.

Experts believe that the oversupply will unleash cutthroat competition and cause developers

in areas that lie far from the central business district (CBD) to offer lower rates. In the

circumstances, developers are also expected to work towards community-centric growth,

focusing on value-for-money products. The report also states that commercial realty in

Ahmedabad is being led primarily by sectors such as banking, financial services and

insurance (BFSI); telecom; pharma; and textile.

CAPITAL VALUELocality Apartment (Rs/sq ft) Plot (Rs/sq yard)

Feb’10 Feb’10Central (2) 1100-3000 10000-15000North (2) 1100-2200 8000-90000South (3) 2000-3600 40000-75000West (11) 1700-4000 20000-75000

Others (4) 2500-4500 25000-50000

RENTAL VALUELocality Apartment 2 BHK (Rs/month)

Feb’10Central (2) 6000-10000North (2) 3000-8000South (3) 6000-15000West (11) 4000-15000Others (4) 6000-15000

30

2.6. CHANGING SCENARIO OF REAL ESTATE IN

AHMEDABAD

The Ahmedabad realty market is gearing up to offer affordable houses for the middle income

group, and it is happening for the first time in many years. Builders in the city are finally

catering to the demand of the middle income group, with affordable housing in the range of

Rs 10 lakh to Rs 25 lakh for a two or three bedroom-hall-kitchen (BHK) flat. Till now, plenty

of high-end apartments were available in the above-Rs 50-lakh range and those worth less

than Rs 5 lakh would have to come up in the villages. The gap between Rs 5 lakh and Rs 10

lakh is huge but it is gradually being filled up.

The shift in focus has come about due to a bust in the retail industry as well as due to prices

hitting the roof in the real estate sector. Between 2004 and 2007, real estate rates started to

rise uncontrollably and increased so much that there were no buyers left and people

postponed buying decisions, opting to wait for the prices to come down, he said.

There is a huge rush of activity in the area between the Sarkhej-Gandhinagar highway (SG

Highway) and SP Ring Road in Ahmedabad. This area has been notified as the R3 zone. This

zone is only for bungalows with a minimum lot size of 1,200 sq yard. Only 15 per cent of the

area is allowed to be built upon, so what we are watching in here are state-of-the-art

bungalows.

Many people who had large bungalows on 1,500 sq yards of land on CG Road and the area

around it are raking it in today. The land price on CG Road right now is between Rs 60,000-

70,000 per sq yard.

From here, most are moving to places like Prahlad Nagar on SG Highway or just beyond

to areas like Bopal, Ambli, Shilaj, Bodakdev, Khoraj, Rancharda and Thaltej. There, at

a fraction of the cost (compared to CG Road), they can get a four-bedroom high-end

apartment or a five-bedroom independent bungalow.

Newer residential areas in the R2 and R3 zones are very close to SG Highway, which is the

main commercial hub at the moment. There are supermarkets and big malls on SG Road

already, and more are being planned.

31

The residential development is mainly happening towards the west and some in the north side

of the city. Though only a few townships have been announced as yet, what are catching up

in Ahmedabad are small residential developments with bungalows or apartment complexes.

Safal Parivesh Developers is another prominent name in the city. It is constructing a township

near Prahaladnagar of 400 to 500 apartments of two to three BHKs.

The area within the city has no land for construction of new buildings and the city is

expanding in a circle, making the area inside the proposed ring roads attractive. The

outermost ring road in the concentric circle is supposed to be completed by 2011. That makes

the area surrounding it extremely attractive for buyers and sellers as it gives easy connectivity

to the city. The Sardar Patel Ring Road area is the space to watch out for in the near future.

With the hike in real-estate prices, most developers played it safe by halting projects and

waiting for the slump to tide over. Some of them have begun construction again slowly and,

rather than creating ambitious projects, are looking to offer affordable housing where bulk

sale is possible.

Today, people of all strata are looking for comfortable two to three BHK accommodations

and everybody wants to save costs. So it doesn’t look attractive to keep building expensive

houses.

32

2.7. LATEST REAL ESTATE PROJECTS IN AHMEDABAD

Ahmedabad is known for its spending power and retail potential. It is a buzz with retail

activities. Pantaloon Retail is planning to open its fifth central mall in Ahmedabad by 2009.

Its retail chain, Big Bazaar will set up 12 more stores there. Pyramid Retail has signed up for

property here. Liberty Shoes has set up Foot mart Retail and is opening its flagship store in

Ahmedabad. 

Ganesh Housing Ltd., which has constructed the first ever project to have earthquake

resistant scheme plans to set up an IT park for Rs. 700 crore. The company which has a

research and development team to analyze traditional and new technology has introduced Wi-

Fi enabled 'Smart Homes' with digital security and solar passive architecture. 

Multiplexes have been dotting the landscape of Ahmedabad. There are major projects under

implementation.

Major builders in the city including N.G Developers, Navratna, BGP Builders and

Saumya Constructions have their hands full in commercial projects. Other players looking

at reaping the benefits in the real estate market are also big names like DLF, K Raheja Group,

Unitech, Parsvnath and some others. Construction giant DLF is investing in a project that has

been identified for urban infrastructure development in the city along with the Sabarmati

riverfront project and integrated public transit system. 

The Adani group is planning a Rs. 2000 crore plus mega township near Nirma University on

SG highway. The Heritage Group has projects spread out around the city. They are planning

a 200-bungalow scheme at Sola near the science city. These will be four-bedroom twin

bungalows which will cost Rs 40 lakh (Rs 4 million) and above. On 40 acres at Koba on the

way to Gandhinagar, Heritage has a farmhouse scheme with houses on 4,000 sq yard plots

(Rs 1.5-1.75 crore -- Rs 15-17.5 million).

33

Ahmedabad with new kinds of planning is becoming a trendsetter of sorts .A golf housing

community project situated close to the Nal Sarovar Bird Sanctuary will be the first of its

kind. The 600-acre Kensville project will have residential plots on the fairways. It is not very

highly priced. The rates vary from Rs.600 per sq yd to Rs. 1100 per sq yds for plots ranging

from 1000 sq yds to 3500 sq yds.\

The most talked about Niho's Scottish Mall will be spread over an area of 4.5 lakh sq ft. at a

cost of Rs. 180 crore. The proposed exhibition cum convention centre at Ahmedabad would

involve investment of $9.2 million, which will further boost commercial activity in the city.

Venus Projects is also doing an integrated township for which they are roping in a foreign

architect. The 350-acre integrated township called Venus Metropolis is close to SP Ring

Road and will have condominiums, twin bungalows and apartments in the range of Rs 20

lakh (Rs 2 million) and Rs 1 crore.

34

3.

SCOPE OF PROJECT

SCOPE OF THE PROJECT

35

The Ahmedabad Real estate is right now in the boom stage. There is hardly any land that is

available in the heart of the city and so the builders and construction companies are exploring

new and new areas for the launch of the various commercial and the residential areas. Some

of these upcoming areas which were unexplored before by the construction companies and

builders are the Prahaladnagar, Vejalpur, Chankheda, Nikol, Bopal and many more to add to

this list.

Demand for the properties in these areas is increasing and to meet with the demands of the

consumers many builders are coming with innovative concept based housing for these areas.

Prahaladnagar area is the hotspot area right now and many builders are focusing on this area

and launching their projects in that area.

The scope of our project is confined to the Real Estate sector in Ahmedabad and in that too

Prahaladnagar area of Ahmedabad and with a special focuses on the construction of the

residential site in that area. Commercial property is excluded from our scope of the study our

main focus would be on the residential real estate part and that too in Prahaladnagar area

only. All the legal documentations that are involved in the construction process is been

excluded from the project. The scope is only limited to the marketing and the financial

feasibility we have excluded technical analysis as it is beyond our knowledge and expertise

and we would need the help of the civil engineers to do it.

We have covered two kinds of feasibility Financial and Marketing Feasibility. The scope of

the financial study is limited to the just the financials of the Project. For doing the feasibility

study we were provided with the site at which the new project is being planned, so all the

details in regards to the acquisition of the land are excluded from the study.

The scope of the marketing feasibility is limited to the factors that affect the buying decision

of the consumers regarding a new residential property with convergence of the new site that

is planned at Prahaladnagar and to know the preference of the consumers for the New

Prahaladnagar Area. The marketing plan of the construction site is excluded from the scope

of the study.

The study could have been done in more depth but due to some limitations the project could

not be further expanded to a greater extent. Thus, the boundary of the research project could

not be further expanded to the technical analysis of the project, passing of the plan by AUDA,

36

the marketing strategy of the site and various other factors that are related to the extent of the

completion of the project. Thus the scope of the project is more than the limitations of the

project.

37

4.

INTRODUCTION TO

THE PODDAR GROUP

PODDAR GROUP

Introduction

38

Poddar Developers was started in the year 1987 in Surat .The main activity of the group is to

construct and sell residential units, offices and shop. During the past years, the construction

activity was carried by different associated / sister concerns under the brand name of Poddar

Group.

Promoters

Shri Pramod Poddar is a Commerce Graduate from the Gujarat University. He plays a key

role in the planning of the construction activity and does the co-ordination work with various

local authorities.

Shri Aashish poddar is a MBA Marketing from the University of Wales. He mainly looks

after the marketing and selling of the various schemes / projects. Over the years he has

developed vast relations and is instrumental in the success of the company.

Shri. Rajesh Poddar is a Commerce graduate. He is mainly involved in managing up purchase

of Lands and managing Finance activities of the company.

Smt. Usha Poddar is a commerce graduate.

Current Projects

Currently Poddar Group is carrying on construction in Surat & Ahmedabad. Following is

the list of total on-going projects of Poddar Group.

39

Sr. Project Names Project Type No. of Units

1 The Poddar Residency Apartments 182

2 The Poddar Park Apartments 156

3 Raj Shelly Apartments 33

Past Projects

Over the past two decades Poddar Group has decisively changed the skyline of Surat City.

Choicest location, perfect planning and immaculate implementation have ensured value for

money for the consumers. Following is the List of some landmark projects implemented

under the umbrella of Poddar Group. The list is only indicative and not comprehensive.

Sr. Project Name No. of units Completion Year

1 MADHULIKA 110 1992

2 GREEN AVENUE 250 1998

3 TURNING POINT 270 1994

4 SILK CITY MARKET 600 1996

5 PODDAR AVENUE 77 2001

6 PODDAR PLAZZA 75 2003

7 PODDAR ARCADE 360 2005

8 RAJ VILAS 86 2009

9 SWASTIK RESIDENCY 104 2009

10 RATNA ANSH 78 2009

11 ORCHID GREENS 292 2009

40

Highlights

(a) None of the buildings was damaged in the recent catastrophe of earthquake in year 2001

in Ahmedabad, Gujarat.

(b) The Company has constructed maximum number of R.C.C. frame structure high-rise

buildings in Surat.

(c) Company is known for initiating projects in undeveloped and developed areas. Poddar

Group is instrumental in the rapid development and expansion of areas like New city

light, Vesu, and Bhattar Road & Ghod Dod Road etc.

41

5.

ANALYSIS

The analysis of the project is divided into two parts:-

Financial Feasibility

Marketing Feasibility

42

In any construction project there are two main analysis that each and every builder does; it is

first to check the financial viability of the project and the market acceptability of the project.

Just the acquisition of the land at the proper place is not factor that would determine the

success of the construction site. Once the land is purchased the builders they go for the

various costs that are associated with the project. These costs range from the development

rights to the expenses for labour, power and so on. A builder takes into consideration of all

the costs that would be incurred, the inflow of the capital and then estimates the profit that the

builder will earn from the project.

The marketing feasibility mainly deals with the survey of the customers/consumers who are

the major prospects of for the project that is planned to be launch. Through the marketing

feasibility the builder or the construction company comes to know the demands and the

requirements of the customers and after analyzing that the builder takes various inputs that

help in the construction of the plan for the proposed project.

Another important part to check the feasibility of the project is to check the technical analysis

of the project through with the help of the civil engineers. These engineers help to design the

various elevators of the proposed projects and bring out innovative concepts and designs that

help the builders to provide better facilities to the customers.

In our project we have covered only the Financial and the Marketing Feasibility. The

technical feasibility is outside the scope of our project as we need civil knowledge for the

same in which we are not experienced at all.

The project is proposed to be started at Prahaladnagar, Makarba road. The total are of the

land is of 9289 sq.mt. The acquisition of the land was done by the company and so the details

regarding the acquisition and the various financials pertaining to the acquisition are not

included in the project.

43

The project is proposed to be a residential project and in that a 2bhk and a 3bhk residential

high rise apartments. The project will have 6 towers. In which 2 towers pertain to the 3bhk

and the rest 4 are 2bhk towers. Each tower will be 12 storied and each tower will have 48

flats in it. The area of a 2bhk flat is 1064 sq.ft. and 1557 sq.ft. for a 3bhk and it is super built

up.

The value added features that are proposed to be provided in the new project are:-

Vitrified tiles in all living, dinning and the kitchen area.

Ceramic tiles up to lintel level in the bathrooms

Exclusive plumbing accessories from Jaguar

Imported and modernized sanitary ware from Cera.

3 phase electrification concealed with copper wiring with modular switches.

The amenities that are proposed to be provided in the project are as follows:-

Concept based elevation

Gym

Children’s play area

Club house

Designer foyer and automatic elevators

Ample parking space

Satellite DTH connection

Intercom facility

24 hrs security

Fire hydrant

Based on all these factors we have done both the financial and the marketing feasibility of

the project.

44

5.1.

FINANCIAL

ANALYSIS

5.1. FINANCIAL FEASIBILITY

Financial Feasibility is a very important tool for any Infrastructure project because this study

gives the total cost estimate of that particular project. This study becomes very critical in case

of BOT (Build, Operate, and Transfer) projects because this type of projects totally based on

45

Financial Feasibility Studies. Financial/Sponsoring Authorities has to decide whether project

has to be done or not.

The objective of financial analysis is to ascertain whether the proposed project will be

financially viable in the sense of being able to meet the burden of servicing debt and whether

the proposed project will satisfy the return expectations of those who provide the capital.

While conducting a financial appraisal certain aspects has to be looked into like:

- Investment outlay and cost of project

- Means of financing

- Projected profitability

- Cash flows of the project

- Investment worthiness judged in terms of various criteria of merit

- Projected financial position

FINANCIAL FEASIBILITY OF THE PROJECT:-

In our financial feasibility we have tried to give a detailed financial analysis including the

Investment outlay and cost of the project, the profitability statement of the project, the

46

projected cash flows, projected balance sheet and the projected profit and loss statement for

the project. In order to make our analysis more accurate we have taken certain assumptions.

ASSUMPTIONS

The land is already been procured and so the procedure for acquiring the land and all

the calculations pertaining to it are not included in the study. The land is situated at

the Prahaladnagar Makarba Area.

All the figures that is the raw materials, labor and other figures are taken as per the

most appropriate market prices.

The cost of capital is assumed to be 11.5%. It is at this percentage that the loan would

be procured and the same is used for the NPV calculations.

In calculation of some of the figures pertaining to the project the help of the various

members of the company was taken and under their guidance the figures were

estimated.

The details regarding the no. of the flats and the no. Of blocks were being given by

the company members and it is readily been taken from them.

The receipt from the customers is being assumed to be received from the fourth

quarter of the first year. It is presumed that the bookings will start at that time only.

The real figures might differ from the said ones.

The rates per unit of the flat have been derived after taking all the development

expenses into consideration.

The interest has been calculated on the outstanding balance at the start of every

month.

It is presumed that the drawing power has been increased at the end of every month.

All the partners have contributed equally in the project. So the profit distribution

would also be equal between the partners.

47

Keeping all these assumptions in the mind all the calculations has been done. The

assumptions have been taken which almost near to the market analysis but then too some

deviations can be there.

PROJECT COST AND MEANS OF FINANCE

The first estimation in any project is done as from where the finance would be procured for

the project. In this project the major source of finance are three:-

Partner’s capital contribution. All the partners are going to contribute equal amount of

capital to the project.

Receipt from members. The receipt from the members will start from the 4 th quarter of

the first year after the bookings are opened.

The third source of finance is cash credit. A loan of 1400 lakhs would be taken from the bank at an interest rate of 11.5%.

PROJECT COST AND MEANS OF FINANCE

COST OF PROJECT RS. IN LACS

DEVELOPMENT RIGHTS 656.67

CONSTRUCTION COST 1945.41

FINANCIAL COST 431.42

CONTINGENCIES 50.00

TOTAL 3083.50

MEANS OF FINANCE

PROPRIETOR’S CAPITAL / UNSECURED LOANS 656.67

RECEIPT FROM MEMBERS 1026.83

CASH CREDIT FROM BANKS 1400.00

TOTAL 3083.50

48

ASSUMPTION STATEMENT

The total construction built up area i.e. saleable area is 353760. The total plot area is 9289

sq.mt. The total saleable area guaranteed is 3.54 of the total plot area and conversion of it into

sq. yards (10.76) leads to the total saleable area. It is been proposed that there would be 6

blocks with a mix of 2bhk and 3bhk with 12 floors in each tower. The total no. of flats in

each tower would be 48 flats. The total area for a 3bhk is 1557 sq. ft. and 2bhk is 1064sq. ft.

All these assumptions are being done with the assistance of the company members as it

includes some technical calculations too. In the calculation of the saleable area the FSI and all

are taken into consideration which comes into the technical analysis.

ASSUMPTION SHEET

Total Construction Area (Built Up Area)

No. of flats Area Total Area

Block wise In sq.feet

A 48 1557 74736

B 48 1557 74736

C 48 1064 51072

D 48 1064 51072

E 48 1064 51072

F 48 1064 51072

TOTAL 288 353760

49

GROSS SALES REALIZATION

In gross sales realization the total income from the sales of the flats is being taken into

consideration. There are 6 blocks two of which are 3bhk and the rest 4 are of 2bhk. Each

block has 48 flats and the rate per unit of the 3bhk that is been estimated is 17.13 lakhs and

that of the 2bhk is being proposed to be of 11.70 lakhs. The selling price at which the

company is planning to sell it is Rs. 1100 per sq. ft. so by multiplying the rate per sq.ft with

the area derives the following figures.

GROSS SALES REALISATION

Particulars No. of Flats Rate per Unit (Rs. In Lacs)

Total value (Rs. In Lacs)

A 48 17.13 822.24

B 48 17.13 822.24

C 48 11.70 561.60

D 48 11.70 561.60

E 48 11.70 561.60

F 48 11.70 561.60

TOTAL 3890.88

Note: selling rate is 1100/- per sq. feet

50

PROFITABILITY STATEMENT

The main sales realization is through the sale of the flats at the prices that are determined

above. The main expenses that would be incurred is mentioned below. After the calculation

of the sales and the expenses the net profit is being calculated. The Net profit after deducting

all the expenses comes to 807.38 lakhs.

PROFITABILITY STATEMENT

RS. IN LACS

GROSS SALES REALISATION 3890.88

Development Rights 656.67

Cost of Land Development 109.53

Raw Material Cost 1191.58

Architect’s & Structural Consultant’s Fees 25.00

Administrative Expenses 22.50

Labor 364.80

Consumables 15.00

Power Consumed 25.00

Lift 112.00

Auda charges 80.00

Sub Total – I 2602.08

Contingencies 50.00

Sub Total – II 2652.08

Interest Cost 431.42

Grand Total 3083.50

Net Profit 807.38

51

DEVELOPMENT EXPENSES AND DETAILED TABLE OF EXPENSES

Development Expenses

Rs. In Lacs

Leveling / Excavation 23.00

Inside Paving / Compound Wall/ Flooring 45.00

Sewerage 8.00

Street Lighting 5.00

Land Scaling 10.00

Bore well 18.53

Total 109.53

Total Cost of Construction

Rs. In Lacs

Raw Material Cost 1191.58

Architect and Structural Engineer’s fee 25.00

Labor 364.80

Consumables 15.00

Power 25.00

Lift 112.00

Administrative Expenses 22.50

Interest expenses 431.42

Auda 80.00

Total 2267.30

52

RAW MATERIAL EXPENSESRaw Material Consumption

per Sq.ftRate(Rs.)

UnitRs. In Lacs

Cement (Bag/ Sq.ft) 0.40 207.00 292.91

Other (Grit) 47.00

Steel (Kg./sq.ft) 3.00 30.00 318.38

Bricks (Brick/ Sq.ft) 15.00 2.80 148.58

Wood (Cuft/ Sq.ft) 0.15 525.00 278.58

Electric, Sanitary Fittings (Rs./ Sq.ft) 30.00 106.13

Total Raw Material Cost 1191.58

Total Sq.feet 353760

LABOR EXPENSES

Labor No.Sal/month/person

Total Salary P.A. Rs. In Lacs

Civil Engineer 10 17500.00 21.00

Construction Supervisor 20 7500.00 18.00

Masons 40 6000.00 28.80

Laborers 100 4500.00 54.00

Assistants 50 4500.00 27.00

Labor Expenses Per Annum 148.80

Total Construction labor For 24 Month 297.60

Add Carpenters 25 7200.00 21.60

Electricians 20 5000.00 12.00

Total Carpentry Expenses for 24 Month 67.20

Total Labor Expenses 364.80

POWER EXPENSES

53

Power Avg Units/

Rate (Rs.) Power

day Unit Exp. P.A.

Power 500.00 6.85 12.50

Total Power Charges For Project 25.00

ADMINISTRATIVE EXPENSES

Administrative Expenses Rs. In Lacs

Salaries and wages 2.00

Transport / Travelling 1.00

Telephone / Fax 1.00

Marketing Expenses 1.50

Stationery Charges 0.50

Miscellaneous Exp. 0.43

Administrative Expenses per Annum 6.43

Administrative Expenses For 3 Years 6 months 22.50

INTEREST REPAYMENT

54

In order to finance the project a loan is been taken in the form of cash credit from the bank

against which the land would be given as a mortgage. The loan would be provided at an

interest of 11.50% and the repayment would be done in 43 instalments. The drawings from

the bank would be till third year and after that the repayment of the loan will start as the

receipt from all the members would be received till that time. So the total interest payments

that would be made after all the calculations come up to 431.32 lakhs. The interest is

calculated on the opening balance every month and the firm can withdraw a certain amount

every month as per the deal with the bank. The drawing power increases every month as the

construction proceeds and once the construction gets over the drawing is complete and the

repayment starts.

STATEMENT OF INTEREST AND REPAYMENT OF CASH CREDIT

INTEREST RATE 11.50%

CASH CREDIT 1400.00

REPAYMENT AMT.IN 43 MNTHS

(Rs. In Lacs)

Year MONTH OP.BAL DISB REPAY CL.BAL INT

I 1 0.00 80.00 0.00 80.00 0.00

2 80.00 90.00 0.00 170.00 0.77

3 170.00 90.00 0.00 260.00 1.63

4 260.00 95.00 0.00 355.00 2.49

5 355.00 95.00 0.00 450.00 3.40

6 450.00 100.00 0.00 550.00 4.31

7 550.00 100.00 0.00 650.00 5.27

8 650.00 105.00 0.00 755.00 6.23

9 755.00 105.00 0.00 860.00 7.24

10 860.00 110.00 0.00 970.00 8.24

11 970.00 110.00 0.00 1080.00 9.30

55

12 1080.00 110.00 0.00 1190.00 10.35

INTEREST IN FIRST YEAR

1190.00 59.23

II 1 1190.00 90.00 0.00 1280.00 11.40

2 1280.00 80.00 0.00 1360.00 12.27

3 1360.00 40.00 0.00 1400.00 13.03

4 1400.00 0.00 0.00 1400.00 13.42

5 1400.00 0.00 0.00 1400.00 13.42

6 1400.00 0.00 0.00 1400.00 13.42

7 1400.00 0.00 0.00 1400.00 13.42

8 1400.00 0.00 0.00 1400.00 13.42

9 1400.00 0.00 0.00 1400.00 13.42

10 1400.00 0.00 0.00 1400.00 13.42

11 1400.00 0.00 0.00 1400.00 13.42

12 1400.00 0.00 0.00 1400.00 13.42

INTEREST IN SECOND YEAR

210.00 1400.00 157.48

III 1 1400.00 0.00 0.00 1400.00 13.42

2 1400.00 0.00 0.00 1400.00 13.42

3 1400.00 0.00 0.00 1400.00 13.42

4 1400.00 0.00 0.00 1400.00 13.42

5 1400.00 0.00 0.00 1400.00 13.42

6 1400.00 0.00 0.00 1400.00 13.42

7 1400.00 0.00 0.00 1400.00 13.42

8 1400.00 0.00 0.00 1400.00 13.42

9 1400.00 0.00 0.00 1400.00 13.42

10 1400.00 0.00 0.00 1400.00 13.42

11 1400.00 0.00 0.00 1400.00 13.42

12 1400.00 0.00 0.00 13.42

56

INTERSET IN THIRD YEAR

0.00 161.04

IIII 1 1400.00 0.00 200.00 1200.00 13.42

2 1200.00 0.00 200.00 1000.00 11.50

3 1000.00 0.00 200.00 800.00 9.58

4 800.00 0.00 200.00 600.00 7.67

5 600.00 0.00 200.00 400.00 5.75

6 400.00 0.00 200.00 200.00 3.83

7 200.00 0.00 200.00 00.00 1.92

INTERSET IN FOURTH YEAR

1400.0 53.67

TOTAL INTEREST CHARGES

431.42

Note:

1. The interest has been calculated on the outstanding balance at the start of every

month.

2. It is presumed that the drawing power has been increased at the end of every month.

57

PROJECTED CASH FLOW STATEMENT

The projected cash flow statement projects the cash inflow and the cash outflow that would be there during the whole life of the project. The

project here is divided into four years and each year in 4 quarters. The surplus that is calculated of these cash flows would be used to calculate

the NPV of the project.

QUARTERLY CASH FLOW (RS. IN LACS)                                  

  YEAR1       YEAR2       YEAR3       YEAR4       TOTAL

COST OF PROJECT 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4  

                                   

Development Rights 656.67 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 656.67

Development Exp. 109.53 0 0 50 0 0 0 0 0 0 0 0 0 0 0 0 159.53

Cost of Construction 200 400 400 400 200 100 100 35.88 0 0 0 0 0 0 0 0 1835.9

Financial Cost 2.4 10.2 18.74 27.9 36.7 40.26 40.3 40.26 40.26 40.26 40.26 40.26 34.5 17.3 1.92 0 431.42

Repayment of Term Loan 0 0 0 0 50 50 50 50 56.25 56.25 56.25 56.25 50 0 0 0 650

Repayment of 0 0 0 0 0 0 0 0 0 0 0 0 275 350 300 0 750

58

c/c A/c Loan

Total 968.6 410.2 418.74 478 286.7 190.3 190 126.1 96.51 96.51 96.51 96.51 359.5 367 301.92 0 0

                                   

MEANS OF FINANCE                                  

Surplus C/F 0 203.1 2.87 -216 31.24 94.54 229 364 337.88 341.4 444.9 648.4 951.84 992 1025.1 1123  

Capital Contribution 156.67 100 100 300 0 0 0 0 0 0 0 0 0 0 0 0 656.67

Receipt from Members 0 0 0 250 350 325 325 100 100 200 300 400 400 400 400 390.9 3890.9

Term Loan 475 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 650

Cash Credit 540 110 100 175 0 0 0 0 0 0 0 0 0 0 0 0 750

Total 1171.7 413.1 202.87 509 381.24 419.5 554 464 437.88 541.4 744.9 1048 1351.8 1392 1425.1    

                                   

Surplus 203.07 2.87 -215.9 31.2 94.54 229.3 364 337.9 341.37 444.9 648.4 951.8 992.34 1025 1123.2 1464  

59

PROJECTED PROFIT AND LOSS ACCOUNT

DESCRIPTION YEAR_1 Amount

YEAR_2 Amount

YEAR_3 Amount

YEAR_4 Amount

INCOME :        

SALES 0 100,000,000 135,000,000 154,088,000

Closing Work-in-Progress 227,543,000 207,247,000 119,261,000 0

TOTAL 227,543,000 307,247,000 254,261,000 154,088,000

EXPENDITURE:        

Opening Work-in-Progress 0 227,543,000 207,247,000 119,261,000

Land (Development Rights) 65,667,000 0 0 0

Development Exp 10,953,000 0 0 0

Construction Cost 145,000,000 43,588,000 0 0

Interest Exp 5,923,000 15,748,000 16,104,000 5,367,000

TOTAL 227,543,000 286,879,000 223,351,000 124,628,000

Profit/Loss for the year 0 20,368,000 30,910,000 29,460,000TOTAL 227,543,000 307,247,000 254,261,000 154,088,000

60

PROJECTED BALANCE SHEET

 

YEAR_1 Amount

YEAR_2 Amount

YEAR_3 Amount

YEAR_4 Amount

SOURCES OF FUNDS :       

Partner's Capital 65,667,000 65,667,000 65,667,000 65,667,000

Balance of Profit and Loss A/C 0 20,368,000 51,278,000 80,738,000

Advance form Customers 25,000,000 35,000,000 0 0

Term Loan 65,000,000 31,500,000 2,316,000 0

Cash Credit Account 71,876,000 54,712,000 0 0

TOTAL 227,543,000 207,247,000 119,261,000 146,405,000

APPLICATION OF FUNDS :

       

Work in Progress 227,543,000 207,247,000 119,261,000 0

Cash & Bank Balance 0 0 0 146,405,000

TOTAL 227,543,000 207,247,000 119,261,000 146,405,000

61

NPV ANALYSIS OF THE PROJECT

Net Present Value (NPV) measures the viability of a project or investment by taking into

account the investments (outflow) and returns generated (inflow) from the investments. It is

computed based on the sum of a series of cash flows in and out. NPV takes into account the

series of cash paid or received in today’s value.

Projects with a positive NPV are expected to increase the value of the firm. Thus, the NPV

decision rule specifies that all independent projects with a positive NPV should be accepted.

When choosing among mutually exclusive projects, the project with the largest (positive)

NPV should be selected.

The NPV is calculated as the present value of the project's cash inflows minus the present

value of the project's cash outflows. This relationship is expressed by the following formula:

Where

CFt = the cash flow at time t and

r = the cost of capital.

62

NPV CALCULATIONS

For the NPV calculations, the cash flows of the different years are taken into consideration.

In order to derive the cash flows for the project we have already prepared the cash flow

statement of each year and each quarter of the year. We have taken the cash flows of the end

of the each year. The surplus that is there in the end of each year is reinvested next year. So

the previous year surplus is being deducted from the current year surplus that is the cash flow

year.

For discounting the cash flows, the discount rate of 11.5% is been taken. It is the same

percentage at which the loan had been procured for the project from the bank. So it becomes

the opportunity cost of capital for the calculation.

The following table will show the calculations in detail:-

YEAR CASH FLOWS DISCOUNTED @ 11.5%

1. 31.24 31.24/1.115 = 28.02

2. 306.64 306.64/1.115^2 = 246.65

3. 613.96 613.96/1.115^3 = 442.91

4. 512.21 512.21/1.115^4 = 331.40

Total NPV = + 1048.98 (lakhs)

ANALYSIS:-

From the above calculations we can see that the NPV of the project is Positive that is

+1048.98 lakhs. As the NPV is positive the project can be accepted and can be moved

forward with. As the NPV is very high it shows that the project is very profitable and should

be undertaken.

Thus through the NPV analysis the financial feasibility of the project is positive and it can be

moved forward with the project at the said estimations and at the preferred place.

63

5.2.

MARKETING

ANALYSIS

1. What type of house do you currently reside in?

64

Self - owned Rented Staying with parents/relatives

The above depicts that nearly 42.50% of the surveyed customers live in self- owned houses.

The next are the people who live in rented houses. The analysis to this is that this 33% of the

customers who are living in rented properties can be taped and they are the most probable

future clients for the project. The next focus can be given to the people who have their own

houses. The people who would be staying for a long time in their current houses would be

inclined to purchase a new house more. So, the main two segments that the company can

focus are on the people who live in rented houses and the people who live in a self owned

house.

65

2. Since how long you are residing in your current house?

≤ 1 year 1-5 years 5-10 years 10-15years ≥ 15 years

The chart clearly depicts that the majority of the surveyed customers are living in their

current property for the past 5 to 10 years. After than comes those who are living for more

than 15 years. The company can target these two segments who are residing in their current

property from the time duration between 10 to 15 years because they would be the people

who would be more inclined to purchase a new house than the ones who have been residing

for less than 5 years.

66

3. What kind of property is it?

Flat/apartment - Low rise High rise

Bungalow

Tenement

Row Houses

others please specify_________________________

Income (Rs.): - 1-5lakh 5-10 lakhs 10-15 lakhs ≥ 15 lakhs

For the analysis part of this question the kind of property is being cross tabulated with the per

annum incomes of the customers. The inference that we want to derive from this is that with

their current annual income in what type of house they are residing in.

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 7.872a 12 .795

Likelihood Ratio 7.360 12 .833

Linear-by-Linear Association

.027 1 .870

N of Valid Cases 200

a. 9 cells (45.0%) have expected count less than 5. The minimum expected count is .06.

incomelevels * kindofproperty Crosstabulation

Count

kindofproperty

Totalflat/appartment bungalow tenament rowhouse others

incomelevels 1-5 lakhs 28 11 11 4 0 54

5-10 lakhs 43 21 19 11 0 94

10-15 lakhs 20 8 9 2 1 40

>=15 lakhs 8 1 2 1 0 12

Total 99 41 41 18 1 200

67

Kind of property * income levels Cross tabulation

Income levels

TotalKind of property 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs

flat/apartment Count 28 43 20 8 99

% within kindofproperty 28.3% 43.4% 20.2% 8.1% 100.0%

% within incomelevels 51.9% 45.7% 50.0% 66.7% 49.5%

% of Total 14.0% 21.5% 10.0% 4.0% 49.5%

bungalow Count 11 21 8 1 41

% within kindofproperty 26.8% 51.2% 19.5% 2.4% 100.0%

% within incomelevels 20.4% 22.3% 20.0% 8.3% 20.5%

% of Total 5.5% 10.5% 4.0% .5% 20.5%

tenament Count 11 19 9 2 41

% within kindofproperty 26.8% 46.3% 22.0% 4.9% 100.0%

% within incomelevels 20.4% 20.2% 22.5% 16.7% 20.5%

% of Total 5.5% 9.5% 4.5% 1.0% 20.5%

rowhouse Count 4 11 2 1 18

% within kindofproperty 22.2% 61.1% 11.1% 5.6% 100.0%

% within incomelevels 7.4% 11.7% 5.0% 8.3% 9.0%

% of Total 2.0% 5.5% 1.0% .5% 9.0%

Others Count 0 0 1 0 1

% within kindofproperty .0% .0% 100.0% .0% 100.0%

% within incomelevels .0% .0% 2.5% .0% .5%

% of Total .0% .0% .5% .0% .5%

Total Count 54 94 40 12 200

% within kindofproperty 27.0% 47.0% 20.0% 6.0% 100.0%

% within incomelevels 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 27.0% 47.0% 20.0% 6.0% 100.0%

68

From the cross tabs that we have done it is analyzed that there is a relation between the

income levels of the customers and the present property they are residing in.

From the above graph we can analyze that out of the 54 respondents who have an income of

1-5 lakhs there are 28 respondents who reside in flat/apartment and the second highest 11

reside in bungalows. The next 94 respondents who have an income level of 5-10 lakhs 43 of

them reside in the flats/apartments and the next highest reside in bungalows. In next 40

respondents who have an income level of 10-15 lakhs majority of them that is 20 of them

reside in flat/apartment and the next highest 9 reside in the tenement. The rest of the greater

than 15 lakhs one highest reside in flat and apartment and the second highest 2 reside in

tenement. So we can conclude that majority of all the income level people reside in flat and

apartment. So we the company can target the customers who are residing in flat and

apartments as it can be said that people of all income levels prefer flat and apartments.

69

HYPOTHESIS FOR CHI- SQUARE

Ho: income levels and kind of property are not dependent

H1: income levels and kind of property are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square

came to be 0.795 which is much higher than 0.05. This shows that these two factors are very

highly correlated with each other and they are highly dependent on each other. So through the

chi-square analysis we can say that the present property they are residing in has a large

dependency of their income levels. Thus the analysis shows that the income levels of the

customers and the kind of the property they are currently residing are highly dependent on

each other.

As the chi-square is more than 0.05 Ho gets rejected and H1 gets accepted.

70

Since how long you are residing in your current house?

≤ 1 year 1-5 years 5-10 years 10-15years ≥ 15 years

What kind of property is it?

Flat/apartment - Low rise High rise

Bungalow

Tenement

Row Houses

others please specify_________________________

For the analysis part of this question the kind of property is being cross tabulated with the

duration of time that they the customers are residing in their current property. The reason for

this cross tabulation is to develop a link between the present duration that they have spent in

the present property and their chances of buying a new property in the future.

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 31.024a 16 .013

Likelihood Ratio 28.454 16 .028

Linear-by-Linear Association

2.044 1 .153

N of Valid Cases 200

a. 11 cells (44.0%) have expected count less than 5. The minimum expected count is .11.

71

sincehowlongincurrenthouse * kindofproperty Crosstabulation

Count

kindofproperty

Totalflat/appartment bungalow tenament rowhouse others

Sincehowlongincurrent

house

1 year 4 5 6 7 0 22

1-5 years 20 5 3 3 0 31

5-10 years 45 14 16 4 1 80

10-15 years 17 6 6 3 0 32

more than 15 years 13 11 10 1 0 35

Total 99 41 41 18 1 200

kindofproperty * sincehowlongincurrenthouse Crosstabulation

sincehowlongincurrenthouse

Total

kindofproperty

1 year 1-5 years 5-10 years 10-15 years

more then

15 years

flat/appartment Count 4 20 45 17 13 99

% within kindofproperty 4.0% 20.2% 45.5% 17.2% 13.1% 100.0%

% within

sincehowlongincurrenthouse

18.2% 64.5% 56.3% 53.1% 37.1% 49.5%

% of Total 2.0% 10.0% 22.5% 8.5% 6.5% 49.5%

Bungalow Count 5 5 14 6 11 41

% within kindofproperty 12.2% 12.2% 34.1% 14.6% 26.8% 100.0%

% within

sincehowlongincurrenthouse

22.7% 16.1% 17.5% 18.8% 31.4% 20.5%

% of Total 2.5% 2.5% 7.0% 3.0% 5.5% 20.5%

Tenement Count 6 3 16 6 10 41

% within kindofproperty 14.6% 7.3% 39.0% 14.6% 24.4% 100.0%

% within

sincehowlongincurrenthouse

27.3% 9.7% 20.0% 18.8% 28.6% 20.5%

% of Total 3.0% 1.5% 8.0% 3.0% 5.0% 20.5%

Rowhouse Count 7 3 4 3 1 18

% within kindofproperty 38.9% 16.7% 22.2% 16.7% 5.6% 100.0%

72

sincehowlongincurrenthouse * kindofproperty Crosstabulation

Count

kindofproperty

Totalflat/appartment bungalow tenament rowhouse others

Sincehowlongincurrent

house

1 year 4 5 6 7 0 22

1-5 years 20 5 3 3 0 31

5-10 years 45 14 16 4 1 80

10-15 years 17 6 6 3 0 32

more than 15 years 13 11 10 1 0 35

% within

sincehowlongincurrenthouse

31.8% 9.7% 5.0% 9.4% 2.9% 9.0%

% of Total 3.5% 1.5% 2.0% 1.5% .5% 9.0%

Others Count 0 0 1 0 0 1

% within kindofproperty .0% .0% 100.0% .0% .0% 100.0%

% within

sincehowlongincurrenthouse

.0% .0% 1.3% .0% .0% .5%

% of Total .0% .0% .5% .0% .0% .5%

Total Count 22 31 80 32 35 200

% within kindofproperty 11.0% 15.5% 40.0% 16.0% 17.5% 100.0%

% within

sincehowlongincurrenthouse

100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 11.0% 15.5% 40.0% 16.0% 17.5% 100.0%

73

From the cross tabs that we have done it is analyzed that there is a relation between the

duration spent in their current residence and the present property they are residing in. The

cross tab were done in order to analyze the relationship between the two.

From the above graph we can analyze that out of the 99 respondents who reside in flat

/apartment 45 of them are residing in it from 5-10 years. The next 41 respondents who reside

in bungalows 14 of them are residing in it from 5-10 years. In next 41 respondents who reside

in tenement 16 of them are residing in it from 5-10 years. The next 18 respondents that are

leaving in the tenements 7 of them are residing in their current property for less than one

year. So it can be analyzed that the majority of the respondents are residing in their current

properties for 5-10 years and these people can be targeted by the company.

74

HYPOTHESIS FOR CHI –SQUARE

Ho: Duration of residing in the current house and the kind of property are not

dependent.

H1: Duration of residing in the current house and the kind of property are

dependent.

In order for greater clarification we calculated the chi-square of this cross tab. The chi-

square came to be 0.013 which is lower than 0.05. This shows that these two factors are not

highly correlated with each other and they are not dependent on each other. So through the

chi-square analysis we can say that the duration of the current property they are residing in

doesn’t have a dependency on their income levels. Thus the analysis shows that the income

levels of the customers and the kind of the property they are currently residing are not

dependent on each other.

as the chi square is less than 0.05 Ho gets accepted and H1 gets rejected.

75

4. Are you looking for a new house?

yes no

In this all the answers that were given by the respondents were positive. The survey was

conducted on the customers who visited the various residential construction sites in the

upcoming areas of Ahmedabad. So the customers that visited these sites wanted to purchase a

new house so all the respondents that we got were in the favour. Moreover, most of the

respondents were the respondents who were already residing in their current house for a long

period of time and also for a variety of changes wanted to change their current property.

76

5. What property are you looking forward to buy?

Flat/Apartment - Low rise High rise

Bungalow

Tenement

Row Houses

Others please specify______________________________________

Income (Rs.): - 1-5lakh 5-10 lakhs 10-15 lakhs ≥ 15 lakhs

For the analysis part of this question the new property one is looking forward is being cross

tabulated with the income levels of the customers. The reason for this cross tabulation is to

develop a link between the new properties that the person is proposing to buy with their

current income level. The main reason for this tabulation is to find out what income level

families prefer what kind of a new property.

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 15.892a 12 .196

Likelihood Ratio 17.458 12 .133

Linear-by-Linear Association

2.740 1 .098

N of Valid Cases 200

a. 8 cells (40.0%) have expected count less than 5. The minimum expected count is .66.

incomelevels * proplookforwrd2buy Crosstabulation

Count

proplookforwrd2buy

Totalflat/appartement bungalow tenament row house other

incomelevels 1-5 lakhs 19 18 5 7 5 54

5-10 lakhs 44 17 20 8 5 94

77

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 15.892a 12 .196

Likelihood Ratio 17.458 12 .133

Linear-by-Linear Association

2.740 1 .098

N of Valid Cases 200

10-15 lakhs 18 13 5 3 1 40

>=15 lakhs 6 2 4 0 0 12

Total 87 50 34 18 11 200

proplookforwrd2buy * incomelevels Crosstabulation

incomelevels

Totalproplookforwrd2buy 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs

flat/appartement

Count 19 44 18 6 87

% within

proplookforwrd2buy

21.8% 50.6% 20.7% 6.9% 100.0%

% within incomelevels 35.2% 46.8% 45.0% 50.0% 43.5%

% of Total 9.5% 22.0% 9.0% 3.0% 43.5%

bungalow Count 18 17 13 2 50

% within

proplookforwrd2buy

36.0% 34.0% 26.0% 4.0% 100.0%

% within incomelevels 33.3% 18.1% 32.5% 16.7% 25.0%

% of Total 9.0% 8.5% 6.5% 1.0% 25.0%

tenament Count 5 20 5 4 34

% within

proplookforwrd2buy

14.7% 58.8% 14.7% 11.8% 100.0%

% within incomelevels 9.3% 21.3% 12.5% 33.3% 17.0%

% of Total 2.5% 10.0% 2.5% 2.0% 17.0%

78

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 15.892a 12 .196

Likelihood Ratio 17.458 12 .133

Linear-by-Linear Association

2.740 1 .098

N of Valid Cases 200

row house Count 7 8 3 0 18

% within

proplookforwrd2buy

38.9% 44.4% 16.7% .0% 100.0%

% within incomelevels 13.0% 8.5% 7.5% .0% 9.0%

% of Total 3.5% 4.0% 1.5% .0% 9.0%

Other Count 5 5 1 0 11

% within

proplookforwrd2buy

45.5% 45.5% 9.1% .0% 100.0%

% within incomelevels 9.3% 5.3% 2.5% .0% 5.5%

% of Total 2.5% 2.5% .5% .0% 5.5%

Total Count 54 94 40 12 200

% within

proplookforwrd2buy

27.0% 47.0% 20.0% 6.0% 100.0%

% within incomelevels 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 27.0% 47.0% 20.0% 6.0% 100.0%

79

From the cross tabs that we have done it is analyzed that there is a relation between the

property that the respondents are looking forward to buy and the income levels of these

respondents. The cross tab were done in order to analyze the relationship between the two.

From the above graph we can analyze that out of the 54 respondents who have an income of

about 1-5 lakhs 19 of them are looking for a new property to be Flat/apartment and 18 are

looking for a bungalow. The next 94 who have an income of about 5-10 lakhs 44 of them are

looking for a new property to be Flat/apartment and 17 are looking for a bungalow. The next

40 who have an income of about 10-15 lakhs 18 of them are looking for a new property to be

Flat/apartment and 13 are looking for a bungalow. The rest 12 who have an income level of

greater than 15 lakhs 6 of them are looking for an flat/apartment. Thus we can derive that

people of all income groups have a higher preference for flats/apartment which is a positive

sign for the company.

80

HYPOTHESIS FOR CHI – SQUARE

Ho: property looking forward to buy and income levels are not dependent

H1: Properties looking forward to buy and income levels are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square

came to be 0.196 which is greater than 0.05. This shows that these two factors are highly

correlated with each other and they are dependent on each other. So through the chi-square

analysis we can say that the incomes levels of the respondents and their preference for the

new property are highly correlated and dependent on each other.

As the chi-square is more than 0.05 Ho gets rejected and H1 gets accepted

81

6. What are the reasons for changing your current house?

Due to a Change of lifestyle

For Security reasons

Inadequate size of the current apartment

For better and more improved Amenities

Because of distance from the current workplace

Because of the old style set up/construction of the house

From the above bar diagram it is very clearly visible that majority of the respondents that is

23.5% of the respondents want to change their current residence for better and more

improved amenities. Thus, it shows that customers now a day’s give more importance to the

amenities that are being provided by the new builders. The second highest rated factor is the

distance from the current work place. 18% of the respondents want to change their residence

just for minimizing the distance to workplace. The third highest factor whom 17.5% of the

respondents have rated is for the change in their current life style. The change in the current

life style can be due to an increase in the status of the family or increase in the income levels

of the respondents because of which they want to shift from their current residence to a new

property.

82

7. What are the factors that would affect your property buying decisions?

(Tick Mark any one of them)

Variables Very Important

Important Neutral Less important Least Important

Price

Location

Developer’s Profile

Brand image

Housing Loan Option

Property Features

Necessary Government Approvals

Vastu Compliance

Payment terms (cash/ Cheque)

N=1 N=2 N=3 N=4 N=5 Total*N Mean=Total*n/200

Price 109 79 9 2 1 307 1.535

Location 88 98 12 1 1 329 1.645

Developer’s profile 66 93 31 9 1 386 1.93

Brand image 53 97 31 13 6 422 2.11

Housing loan option

51 103 30 10 6 417 2.085

Property features 68 104 18 6 4 374 1.87

Necessary govt.approvals

104 61 23 11 1 344 1.72

Vastu compliance 43 59 56 22 20 517 2.585

Payment terms 54 99 34 10 3 409 2.045

83

  

price locationdeveloper's

profilebrand image

housing loan option

property features

necessary government approvals

Vastu compliance

payment terms

Mean 1.5350 1.6450 1.9300 2.1100 2.0850 1.8700 1.7200 2.5850 2.0450

In this question we asked the respondents to mark the various factors on a liker scale ranging

from very important to the least important. In order to neutralize the effect of the ranks, the

weighted average method was used. In these the number of responses to each of the factor on

each of the liker scale ranging was calculated and the weighted mean was found out. The

factor which scores the least mean is the most preferred by the respondents and so on.

Now looking at the means price has the least mean of 1.5350. So it can be analyzed that the

price of the property is the most important factor that the customers consider while making

their buying decision. The next important factor that affects their buying decision is location

with a mean of 1.6450. so it can be evaluated that customers look for the location as the

second important factor for buying. The least important factor that affects the respondents

buying decision is the vastu compliance with a mean of 2.5850.

84

8. According to you which are the most important factors that should be present in a

new property?

( Tick Mark any one of them)

Variables Very Important

Important Neutral Less important

Least Important

Amenities (Garden, club house Etc.)

Security

Structure

Serenity

Elevation

Concept Based Housing Design

Proximity

N=1 N=2 N=3 N=4 N=5 Total*N Mean=Total*n/200

Amenities 66 79 47 7 1 398 1.99

Security 73 110 12 3 2 351 1.755

Structure 75 103 18 2 2 353 1.765

Serenity 44 80 58 10 8 458 2.29

Elevation 40 110 34 10 6 432 2.16

Concept based housing 65 80 30 14 11 426 2.13

Proximity 49 78 55 10 8 450 2.25

85

   

amenities security structure serenity elevation

concept based

housing design proximity

Mean 1.9900 1.7550 1.7650 2.2900 2.1600 2.1300 2.2500

In this question we asked the respondents to mark the various factors that are important in the

new property on a liker scale ranging from very important to the least important. In order to

neutralize the effect of the ranks, the weighted average method was used. In these the number

of responses to each of the factor on each of the liker scale ranging was calculated and the

weighted mean was found out. The factor which scores the least mean is the most preferred

by the respondents and so on.

Now looking at the means of the various factors security has the lowest mean of 1.7550. That

means the customers gives the most importance to the security factor that should be present

in the new property. The third lowest mean is of the Amenities with a mean of 1.9900. This

correlates with the question of factors for changing the current property. The highest mean

has been given to serenity with a mean of 2.2900. This shows that for the customers the

greenery factor is the least important that should be present in the new property.

86

9. What kind of house would you prefer?

Furnished

Semi-furnished

Unfurnished

The above chart shows that 38% of the respondents prefer the house which is totally

furnished. The 37.5% of the people prefer houses that are semi-finished. This shows that

majority of the respondents either prefer a semi-furnished or an unfurnished apartment. Most

of them are not still acquainted with the idea of fully furnished houses. Still the concept of

getting the interiors done by them is hot favorite. Customers now a day’s appreciate even the

semi-furnished houses in which the flooring, bathroom fittings, electrification is done by the

builders themselves. The concept of full furnished houses will take time to get accepted by

the customers of Ahmedabad.

87

10. What amenities are the most important that would fulfill your expectations?

(Rate them from 1 to 5:- 1 being the most important & 5 being the least)

Garden ______ satellite DTH ______

Children’s Play area ______ Elevators ______

Club House ______ Swimming pool ______

Intercom Facility ______ Fire fighting system ______

Parking space ______ Others ______

Frequency Table

garden

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 54 26.3 27.0 27.0

important 58 28.3 29.0 56.0

neutral 56 27.3 28.0 84.0

less important 25 12.2 12.5 96.5

least important 7 3.4 3.5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

childrensplayarea

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 47 22.9 23.5 23.5

important 51 24.9 25.5 49.0

neutral 50 24.4 25.0 74.0

less important 38 18.5 19.0 93.0

least important 14 6.8 7.0 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

88

childrensplayarea

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 47 22.9 23.5 23.5

important 51 24.9 25.5 49.0

neutral 50 24.4 25.0 74.0

less important 38 18.5 19.0 93.0

least important 14 6.8 7.0 100.0

Total 200 97.6 100.0

Missing System 5 2.4

clubhouse

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 50 24.4 25.0 25.0

important 41 20.0 20.5 45.5

neutral 41 20.0 20.5 66.0

less important 41 20.0 20.5 86.5

least important 27 13.2 13.5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

intercomfacility

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 42 20.5 21.0 21.0

important 36 17.6 18.0 39.0

neutral 48 23.4 24.0 63.0

less important 49 23.9 24.5 87.5

least important 25 12.2 12.5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

parkingspace

89

intercomfacility

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 42 20.5 21.0 21.0

important 36 17.6 18.0 39.0

neutral 48 23.4 24.0 63.0

less important 49 23.9 24.5 87.5

least important 25 12.2 12.5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 106 51.7 53.0 53.0

important 52 25.4 26.0 79.0

neutral 19 9.3 9.5 88.5

less important 17 8.3 8.5 97.0

least important 6 2.9 3.0 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

Satellite DTH

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 40 19.5 20.0 20.0

important 47 22.9 23.5 43.5

neutral 49 23.9 24.5 68.0

less important 39 19.0 19.5 87.5

least important 25 12.2 12.5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

elevators

Frequency Percent Valid Percent

Cumulative

Percent

90

intercomfacility

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 42 20.5 21.0 21.0

important 36 17.6 18.0 39.0

neutral 48 23.4 24.0 63.0

less important 49 23.9 24.5 87.5

least important 25 12.2 12.5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Valid very important 76 37.1 38.0 38.0

important 49 23.9 24.5 62.5

neutral 31 15.1 15.5 78.0

less important 24 11.7 12.0 90.0

least important 20 9.8 10.0 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

swimmingpool

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 37 18.0 18.5 18.5

important 61 29.8 30.5 49.0

neutral 26 12.7 13.0 62.0

less important 43 21.0 21.5 83.5

least important 32 15.6 16.0 99.5

23.00 1 .5 .5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

firefightingsystem

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 76 37.1 38.0 38.0

91

intercomfacility

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 42 20.5 21.0 21.0

important 36 17.6 18.0 39.0

neutral 48 23.4 24.0 63.0

less important 49 23.9 24.5 87.5

least important 25 12.2 12.5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

important 35 17.1 17.5 55.5

neutral 30 14.6 15.0 70.5

less important 43 21.0 21.5 92.0

least important 16 7.8 8.0 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

others

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 2 1.0 1.0 1.0

important 4 2.0 2.0 3.0

neutral 4 2.0 2.0 5.0

less important 6 2.9 3.0 8.0

least important 184 89.8 92.0 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

 

gardenchildrensplayarea

clubhouse

intercomfacili

ty

parkingspace

satelliteDTH

elevators

swimmingpool

firefightingsystem others

Mean 2.3650 2.6050 2.7700

2.8950

1.8250

2.8100 2.3150

2.9600 2.4400 4.8300

92

In this question we asked the respondents to rank the various amenities that are important in

the new property, 1 being the most important and 5 being the least important. In order to

neutralize the effect of the ranks, the weighted average method was used. In these the number

of responses to each of the amenities on each of the rankings was calculated and the weighted

mean was found out. The amenities which scores the least mean is the most preferred by the

respondents and so on.

Now looking at the means of the various amenities the parking space got the least mean of

1.8250. It shows that in the amenities customers give more importance to the parking space

that is being provided. The second least mean is of elevators is 2.3150. The outer appearance

of the property is the second important amenity for respondents. The least important amenity

that has got the highest mean is swimming pool facility with a mean of 2.9600 and others

having a highest mean of 4.8300. Garden and other factors come as the neutral factors that

might or might not be important in the purchase of the new property.

93

11. What type of flooring would you prefer in your new house?

(Rank them from 1 to 5:- 1 being the most preferred & 5 being the least)

Italian Marble ______ wooden flooring ______

Vitrified Tiles ______ others ______

Ceramic Tiles ______

N=1 N=2 N=3 N=4 N=5 Total*N Mean=Total*n/200

Italian marble

54 63 61 19 3 454 2.27

Vitrified tiles

65 69 52 14 0 415 2.075

Ceramic tiles

38 25 45 88 4 595 2.975

Wooden flooring

41 42 40 73 4 553 2.765

Others 2 1 3 6 188 977 4.885

   Italian marble

vitrified tiles

ceramic tiles

wooden flooring others

Mean 2.2700 2.0750 2.9750 2.7850 4.8850

94

In this question we asked the respondents to rank the various floorings that are important in

the new property, 1 being the most important and 5 being the least important. In order to

neutralize the effect of the ranks, the weighted average method was used. In these the number

of responses to each of the floorings on each of the rankings was calculated and the weighted

mean was found out. The flooring which scores the least mean is the most preferred by the

respondents and so on.

Now looking at the means of the various floorings, vitrified tiles have scored the least mean

of 2.0750. This means that customers would prefer more vitrified floorings in their new

property. The next lowest mean is 2.2700 and it is for Italian marbles. People consider Italian

marbles add to their status. The least preferred are ceramic tiles and others which have a high

mean of 2.9750 and 4.8850.

95

12. What Brand of toilet furnishing accessories would you prefer in the new property?

(Rank them from 1 to 5:- 1 being the most preferred & 5 being the least)

Jacquar ______ Cera ______

Hindware ______ Kohler ______

others ______

N=1 N=2 N=3 N=4 N=5 Total*N Mean=Total*n/200

Jaguar 89 69 25 11 6 376 1.88

Hindware 27 52 75 46 0 540 2.70

Cera 38 53 60 44 5 525 2.625

Kohler 35 26 36 93 10 617 3.085

Others 11 0 5 7 177 939 4.695

96

    jaguar hindware cera kohler othersMean 1.8800 2.7000 2.6250 3.0850 4.6950

In this question we asked the respondents to rank the various bathroom fittings that are

important in the new property, 1 being the most important and 5 being the least important. In

order to neutralize the effect of the ranks, the weighted average method was used. In these the

number of responses to each of the bathroom fittings on each of the rankings was calculated

and the weighted mean was found out. The bathroom fittings which scores the least mean is

the most preferred by the respondents and so on.

Now looking at the means of the various bathroom fittings, Jaguar has scored the lowest

mean of 1.8800. This shows that people would prefer that their property bathroom fittings

should be of Jaguar. The second lowest mean is of Cera that is 2.6250. The highest mean of

3.0850 and 2.6950 have been given by the respondents to Kohler and others. This shows that

Kohler is the least preferred by the customers in their new property.

97

13. What kind of Electrification would you prefer in the new property?

Single Phase

Two phase

Three phase

Now looking at the pie chart one can analyze that majority of the people i.e. 57.50% of the

respondents would prefer three phase electrification in their new property so that the load can

be divided equally on all the three phases that are being provided by the builders. The second

highest preferred one is two phases which is preferred by 23.50% of the respondents. Only

19% of the respondents opted for a single phase connection. The main perception of the

people is that a three phase is very costly so they mainly prefer one phase or two phase

electrification.

98

14. Where would you prefer your new property to be strategically located?

Heart of the city ( shahibaug, paldi, Navrangpura Etc.)

Suburbs ( Judges bungalow, prahaladnagar, Bopal, Etc.)

Amidst natural surroundings ( South Bopal, Gandhinagar Etc.)

From the chart it is clearly visible that 48% of the respondents want their new property to be

located in the suburbs of the city. The suburbs of the city include places like Prahaladnagar,

Bopal, Thaltej, Sarkhej and many such places. So we get one of our conclusions here that

people are open up to exploring new sub urban areas and are inclined to purchase their house

there. The second most preferred location is amidst natural surroundings to which 27.50%

respondents preferred. These areas include the gandhinagar area, the south bopal area and all

such areas. The least preferred is the location of Heart of the city which is preferred by 24%

of the respondents. In the heart of the city there is very less property available and the peace

and security that the people are looking is not available so people prefer less that location.

99

15. Which area of Ahmedabad would you prefer to purchase your new house?

(Rank them from 1 to 10:- 1 being the most preferred & 10 being the least)

Shahibaug ______ Nikol ______ Naroda ______

Chandkheda _____ Vejalpur ______ Bopal _____

Paldi ______ Thaltej ______ Vastrapur ______

Prahaladnagar ______

N=1

N=2

N=3

N=4

N=5

N=6

N=7

N=8

N=9

N=10

Total*N

Mean=Total*n/200

Shahibaug 20 18 21 22 13 26 26 6 28 20 1110 5.55

Chandkheda

9 11 14 20 24 18 30 25 21 28 1260 6.3

Paldi 27 16 18 21 31 17 22 12 16 20 1048 5.24

Prahladnagar

76 49 20 32 10 3 0 4 4 2 518 2.59

Nikol 5 8 9 4 17 14 18 56 37 2 1460 7.3

Vejalpur 2 8 18 16 29 44 24 24 23 12 1232 6.16

Thaltej 16 34 28 11 22 15 20 18 17 19 1039 5.195

Naroda 3 5 16 24 14 13 34 29 19 43 1376 6.88

Bopal 10 15 20 25 23 30 20 12 23 22 1158 5.79

Vastrapur 29 38 37 24 15 20 5 10 11 11 831 4.155

  

shahibaug

chandkheda paldi prahaladnagar nikol vejalpur thaltej naroda bopal

vastrapur

Mean 5.5500 6.3000 5.2400

2.5900 7.3000 6.1600 5.1950 6.8800 5.7900 4.1550

100

In this question we asked the respondents to rank the various areas that are most preferred to

buy a new house, 1 being the most important and 10 being the least important. In order to

neutralize the effect of the ranks, the weighted average method was used. In these the number

of responses to each of the areas for purchase decision on each of the rankings was calculated

and the weighted mean was found out. The area which scores the least mean is the most

preferred by the respondents and so on.

Now looking at the means of the various areas that are preferred for buying a new property

Prahaladnagar area has received the lowest mean of 2.5900. This shows that people are

attracted towards the New Prahaladnagar Area and they want to buy their new property in

that area. This result makes the marketing feasibility positive as people would prefer to buy

new property in that area. The second property which has got the lowest mean is Vastrapur

with a mean of 4.1550. The main advantage of this area is the beautiful Vastrapur Lake and

the easy availability and the connection to the various areas of Ahmedabad. The third lowest

mean of 5.1950 is of Thaltej.

The three highest means are 7.3000, 6.8800, 6.3000 are of the areas Nikol, Naroda and

Chandkheda. The main reason for this can be that these areas are not that well developed and

are not properly connected with the other places of Ahmedabad. Customers will definitely

prefer properties in these areas but it will take time for them to appreciate these areas for

purchase purposes.

16. While selecting any particular area what are the criteria that you consider?

101

(Rate from 1 to 10:- 1 being the most preferred & 10 being the least)

Children’s School/ college ______ safety ______

Work place ______ Hospitals ______

Local transport ______ Cinema halls ______

Basic necessities ______ others ______

Frequencies

Statistics

childrensschoolc

ollege workplace localtransport basicnecessities safety hospitals cinemahalls others3

N Valid 200 200 200 200 200 200 200 200

Missing 5 5 5 5 5 5 5 5

Mean 2.8350 2.2350 2.6950 2.0950 2.6200 2.8950 3.2600 4.6600

childrensschoolcollege

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 43 21.0 21.5 21.5

important 41 20.0 20.5 42.0

neutral 53 25.9 26.5 68.5

less important 35 17.1 17.5 86.0

least important 27 13.2 13.5 99.5

8.00 1 .5 .5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

102

103

workplace

Frequency Percent Valid PercentCumulative

Percent

Valid very important 92 44.9 46.0 46.0

important 37 18.0 18.5 64.5

neutral 27 13.2 13.5 78.0

less important 23 11.2 11.5 89.5

least important 20 9.8 10.0 99.5

8.00 1 .5 .5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

localtransport

Frequency Percent Valid PercentCumulative

Percent

Valid very important 46 22.4 23.0 23.0

important 54 26.3 27.0 50.0

neutral 37 18.0 18.5 68.5

less important 43 21.0 21.5 90.0

least important 19 9.3 9.5 99.5

7.00 1 .5 .5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

Basic necessities

Frequency Percent Valid PercentCumulative

Percent

Valid very important94 45.9 47.0 47.0

important45 22.0 22.5 69.5

neutral26 12.7 13.0 82.5

less important18 8.8 9.0 91.5

least important17 8.3 8.5 100.0

Total200 97.6 100.0

Missing System5 2.4

Total 205 100.0

safety

Frequency Percent Valid PercentCumulative

Percent

Valid very important 40 19.5 20.0 20.0

important 60 29.3 30.0 50.0

neutral 52 25.4 26.0 76.0

less important 32 15.6 16.0 92.0

least important 16 7.8 8.0 100.0

Total 200 97.6 100.0

Missing System 5 2.4

hospitals

Frequency Percent Valid PercentCumulative

Percent

Valid very important 38 18.5 19.0 19.0

important 40 19.5 20.0 39.0

neutral 56 27.3 28.0 67.0

less important 38 18.5 19.0 86.0

least important 27 13.2 13.5 99.5

6.00 1 .5 .5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

cinemahalls

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 14 6.8 7.0 7.0

important 42 20.5 21.0 28.0

neutral 52 25.4 26.0 54.0

less important 62 30.2 31.0 85.0

least important 30 14.6 15.0 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

104

others3

Frequency Percent Valid Percent

Cumulative

Percent

Valid very important 2 1.0 1.0 1.0

important 8 3.9 4.0 5.0

neutral 5 2.4 2.5 7.5

less important 26 12.7 13.0 20.5

least important 159 77.6 79.5 100.0

Total 200 97.6 100.0

Missing System 5 2.4

Total 205 100.0

    childrensschoolcollege workplace localtransport basicnecessities safety hospitals

cinemahalls

others3

Mean 2.8350 2.2350 2.6950 2.0950 2.6200 2.8950 3.2600 4.6600

105

In this question we asked the respondents to rate the various criteria that are the most

important to them while selecting any particular area. We asked them to rate all the criteria

from 1 to 5, 1 being the most important and 5 being the least important. After that we used

the frequencies and the mean to find out the criteria which is of the most important for the

respondent while selecting any area. In this the lowest mean is the most important criteria and

highest mean being the least important.

Looking at the chart above and the various means, the lowest mean of 2.0950 is been allotted

to basic necessities. For the respondents the main criteria for selecting any area are basic

necessities. Basic necessities deal with the availability of the day to day items that are

required in the normal course of life. The second lowest mean of 2.2350 is been given to

work place. This analysis goes hand in hand with the analysis of the question for reasons for

changing the current residence. The proximity to the workplace is the second most important

factor for the respondents. The third most important factor is security with a mean of 2.6250.

This also matches with the most important amenity that the respondents look for in the new

property.

The criteria which are of the least importance are hospitals, cinema halls and others with a

mean of 2.8950, 3.2600 and 4.6600. According to the respondents these are the least

important criteria that affect their area preference decision.

106

17. What are your perceptions about the New Prahaladnagar Area?

_________________________________________________________________________________________________________________________________

This was an open ended question that was asked to the respondents in order to know their

ideas and perceptions about the new Prahaladnagar area.

Majority of the respondents said that it is a good and an upcoming area. It is an area where

there is a lot of greenery and lush green gardens all around. Some other respondents brought

the investment topic in the light. They said that it is a nice place for investment as the prices

of the property in this area is going to rise in the future and so a good return on the

investment can be earned. Other reviews were that it is the area where a majority of the new

schemes would be launched as people want to shift to new areas where there is more peace

and serenity. Other opinions were that in addition to the upcoming area the area is very well

connected to the various food joints, cinema halls, shopping malls and so on.

Some of the opponents to this area said that the land prices in these areas are very high and so

the builders charge a high price for their residential and commercial schemes. Others argued

that this is area is very far from the railway station and airport.

Well there were some few respondents who were not very satisfied new Prahaladnagar Area.

But majority of the respondents agreed that it is a very hot destination to invest in as the total

return on the investment is going to be there in the future and the place is surrounded with

greenery and serenity everywhere.

107

18. Out of the following options for a 2bhk apartment at New Prahaladnagar what is

the maximum price you would want to pay?

18-22 lakhs 22-26 lakhs 26-30 lakhs ≥ 30 lakhs

For the analysis part of this question the Prahaladnagar area is been cross tabulated with the

Price of the 2 bhk. The main reason for going for this cross tabulation was to know the price

at which customers would prefer to buy the 2bhk at Prahaladnagar. This linkage is done to know

that the rates that the new scheme would provide would be accepted by customers or not.

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 29.167a 24 .214

Likelihood Ratio 34.285 24 .080

Linear-by-Linear Association

3.429 1 .064

N of Valid Cases 200

a. 21 cells (58.3%) have expected count less than 5. The minimum expected count is .19.

price2bhk * prahladnagar Crosstabulation

Count

prahladnagar

Totalprice2bhk

rank 1 rank 2 rank 3 rank 4 rank 5 rank 6 rank 8 rank 9 rank 10

18-22 lakhs 6 11 5 10 4 0 0 1 0 37

22-26 lakhs 23 11 6 9 2 1 3 0 0 55

26-30 lakhs 21 15 5 5 4 1 0 2 1 54

>=30 lakhs 26 13 4 8 0 1 1 1 0 54

Total 76 50 20 32 10 3 4 4 1 200

prahladnagar * price2bhk Crosstabulation

108

price2bhk

Totalprahladnagar 18-22 lakhs 22-26 lakhs 26-30 lakhs >=30 lakhs

rank 1 Count 6 23 21 26 76

% within prahladnagar 7.9% 30.3% 27.6% 34.2% 100.0%

% within price2bhk 16.2% 41.8% 38.9% 48.1% 38.0%

% of Total 3.0% 11.5% 10.5% 13.0% 38.0%

rank 2 Count 11 11 15 13 50

% within prahladnagar 22.0% 22.0% 30.0% 26.0% 100.0%

% within price2bhk 29.7% 20.0% 27.8% 24.1% 25.0%

% of Total 5.5% 5.5% 7.5% 6.5% 25.0%

rank 3 Count 5 6 5 4 20

% within prahladnagar 25.0% 30.0% 25.0% 20.0% 100.0%

% within price2bhk 13.5% 10.9% 9.3% 7.4% 10.0%

% of Total 2.5% 3.0% 2.5% 2.0% 10.0%

rank 4 Count 10 9 5 8 32

% within prahladnagar 31.3% 28.1% 15.6% 25.0% 100.0%

% within price2bhk 27.0% 16.4% 9.3% 14.8% 16.0%

% of Total 5.0% 4.5% 2.5% 4.0% 16.0%

rank 5 Count 4 2 4 0 10

% within prahladnagar 40.0% 20.0% 40.0% .0% 100.0%

% within price2bhk 10.8% 3.6% 7.4% .0% 5.0%

% of Total 2.0% 1.0% 2.0% .0% 5.0%

rank 6 Count 0 1 1 1 3

% within prahladnagar .0% 33.3% 33.3% 33.3% 100.0%

% within price2bhk .0% 1.8% 1.9% 1.9% 1.5%

% of Total .0% .5% .5% .5% 1.5%

rank 8 Count 0 3 0 1 4

% within prahladnagar .0% 75.0% .0% 25.0% 100.0%

% within price2bhk .0% 5.5% .0% 1.9% 2.0%

% of Total .0% 1.5% .0% .5% 2.0%

109

rank 9 Count 1 0 2 1 4

% within prahladnagar 25.0% .0% 50.0% 25.0% 100.0%

% within price2bhk 2.7% .0% 3.7% 1.9% 2.0%

% of Total .5% .0% 1.0% .5% 2.0%

rank 10 Count 0 0 1 0 1

% within prahladnagar .0% .0% 100.0% .0% 100.0%

% within price2bhk .0% .0% 1.9% .0% .5%

% of Total .0% .0% .5% .0% .5%

Total Count 37 55 54 54 200

% within prahladnagar 18.5% 27.5% 27.0% 27.0% 100.0%

% within price2bhk 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 18.5% 27.5% 27.0% 27.0% 100.0%

110

From the cross tabs that we have done it is analyzed that there is a relation between the price

of 2bhk and Prahaladnagar area. The cross tab were done in order to analyze the relationship

between the two.

From the above graph we can analyze that out of the 37 respondents who prefer 18-22 lakhs

to pay for a 2bhk at Prahaladnagar there are 6 respondents who have given Prahaladnagar as

their first preference. The next 55 respondents who prefer 22-26 lakhs to pay for a 2bhk at

Prahaladnagar there are 23 respondents who have given Prahaladnagar as their first

preference. The next 54 respondents who prefer 26-30 lakhs to pay for a 2bhk at

Prahaladnagar there are 21 respondents who have given Prahaladnagar as their first

preference. The next 54 respondents who prefer ≥30 lakhs to pay for a 2bhk at Prahaladnagar

there are 26 respondents who have given Prahaladnagar as their first preference. So from this

it can be analyzed that the people are ready to pay ≥ 30 lakhs and 22-26 lakhs for a 2bhk

apartment at their most preferred area that is Prahaladnagar.

HYPOTHESIS FOR CHI-SQUARE

Ho: Prahaladnagar and price of 2bhk are not dependent

H1: Prahaladnagar and price of 2bhk are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square

came to be 0.214 which is higher than 0.05. This shows that these two factors are highly

correlated with each other and they are dependent on each other. So through the chi-square

analysis we can say that the price of a 2bhk apartment at Prahaladnagar does have a

dependency on the Prahaladnagar area. Thus the analysis shows that the price of a 2bhk

apartment at Prahaladnagar and Prahaladnagar area are dependent on each other.

The chi-square of the analysis is more than 0.05, so H1 gets accepted and Ho gets rejected.

111

19. Out of the following options for a 3bhk apartment at New Prahaladnagar what is

the maximum price you would want to pay?

30-35 lakhs 35-40 lakhs 40-45 lakhs ≥ 45 lakhs

For the analysis part of this question the Prahaladnagar area is been cross tabulated with the

Price of the 3 bhk. The main reason for going for this cross tabulation was to know the price

at which customers would prefer to buy the 3 bhk at Prahaladnagar. This linkage is done to

know that the rates that the new scheme would provide would be accepted by customers or

not.

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 30.117a 24 .181

Likelihood Ratio 32.566 24 .114

Linear-by-Linear Association

.614 1 .433

N of Valid Cases 200

a. 23 cells (63.9%) have expected count less than 5. The minimum expected count is .11.

price3bhk * prahladnagar Crosstabulation

Count

prahladnagar

Totalrank 1 rank 2 rank 3 rank 4 rank 5 rank 6 rank 8 rank 9 rank 10

price3bhk 30-35 lakhs 9 9 4 10 1 0 2 1 0 36

35-40 lakhs 25 12 9 8 6 2 0 0 0 62

40-45 lakhs 36 24 5 9 2 0 1 3 1 81

>=45 lakhs 6 5 2 5 1 1 1 0 0 21

Total 76 50 20 32 10 3 4 4 1 200

112

prahladnagar * price3bhk Crosstabulation

price3bhk

Totalprahladnagar 30-35 lakhs 35-40 lakhs 40-45 lakhs >=45 lakhs

rank 1 Count 9 25 36 6 76

% within prahladnagar 11.8% 32.9% 47.4% 7.9% 100.0%

% within price3bhk 25.0% 40.3% 44.4% 28.6% 38.0%

% of Total 4.5% 12.5% 18.0% 3.0% 38.0%

rank 2 Count 9 12 24 5 50

% within prahladnagar 18.0% 24.0% 48.0% 10.0% 100.0%

% within price3bhk 25.0% 19.4% 29.6% 23.8% 25.0%

% of Total 4.5% 6.0% 12.0% 2.5% 25.0%

rank 3 Count 4 9 5 2 20

% within prahladnagar 20.0% 45.0% 25.0% 10.0% 100.0%

% within price3bhk 11.1% 14.5% 6.2% 9.5% 10.0%

% of Total 2.0% 4.5% 2.5% 1.0% 10.0%

rank 4 Count 10 8 9 5 32

% within prahladnagar 31.3% 25.0% 28.1% 15.6% 100.0%

% within price3bhk 27.8% 12.9% 11.1% 23.8% 16.0%

% of Total 5.0% 4.0% 4.5% 2.5% 16.0%

rank 5 Count 1 6 2 1 10

% within prahladnagar 10.0% 60.0% 20.0% 10.0% 100.0%

% within price3bhk 2.8% 9.7% 2.5% 4.8% 5.0%

% of Total .5% 3.0% 1.0% .5% 5.0%

rank 6 Count 0 2 0 1 3

% within prahladnagar .0% 66.7% .0% 33.3% 100.0%

% within price3bhk .0% 3.2% .0% 4.8% 1.5%

% of Total .0% 1.0% .0% .5% 1.5%

rank 8 Count 2 0 1 1 4

% within prahladnagar 50.0% .0% 25.0% 25.0% 100.0%

% within price3bhk 5.6% .0% 1.2% 4.8% 2.0%

% of Total 1.0% .0% .5% .5% 2.0%

rank 9 Count 1 0 3 0 4

% within prahladnagar 25.0% .0% 75.0% .0% 100.0%

113

% within price3bhk 2.8% .0% 3.7% .0% 2.0%

% of Total .5% .0% 1.5% .0% 2.0%

rank 10 Count 0 0 1 0 1

% within prahladnagar .0% .0% 100.0% .0% 100.0%

% within price3bhk .0% .0% 1.2% .0% .5%

% of Total .0% .0% .5% .0% .5%

Total Count 36 62 81 21 200

% within prahladnagar 18.0% 31.0% 40.5% 10.5% 100.0%

% within price3bhk 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 18.0% 31.0% 40.5% 10.5% 100.0%

114

From the cross tabs that we have done it is analyzed that there is a relation between the price

of 3bhk and Prahaladnagar area. The cross tab were done in order to analyze the relationship

between the two.

From the above graph we can analyze that out of the 36 respondents who prefer 30-35 lakhs

to pay for a 3bhk at Prahaladnagar there are 9 respondents who have given Prahaladnagar as

their first preference. The next 62 respondents who prefer 35-40 lakhs to pay for a 3bhk at

Prahaladnagar there are 25 respondents who have given Prahaladnagar as their first

preference. The next 81 respondents who prefer 40-45 lakhs to pay for a 3bhk at

Prahaladnagar there are 36 respondents who have given Prahaladnagar as their first

preference. The next 21 respondents who prefer ≥45 lakhs to pay for a 3bhk at Prahaladnagar

there are 6 respondents who have given Prahaladnagar as their first preference. So from this it

can be analyzed that the people are ready to pay 35-40 lakhs and 40-45 lakhs for a 3bhk

apartment at their most preferred area that is Prahaladnagar.

HYPOTHESIS FOR CHI-SQUARE

Ho: Prahaladnagar and price of 3bhk are not dependent

H1: Prahaladnagar and price of 3bhk are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square

came to be 0.181 which is higher than 0.05. This shows that these two factors are highly

correlated with each other and they are dependent on each other. So through the chi-square

analysis we can say that the price of a 3bhk apartment at Prahaladnagar does have a

dependency on the Prahaladnagar area. Thus the analysis shows that the price of a 3bhk

apartment at Prahaladnagar and Prahaladnagar area are dependent on each other.

As the chi-square analysis is higher than 0.05, H1 gets accepted and Ho gets rejected.

115

Out of the following options for a 2bhk apartment at New Prahaladnagar what is the

maximum price you would want to pay?

18-22 lakhs 22-26 lakhs 26-30 lakhs ≥ 30 lakhs

Income (Rs.): - 1-5lakh 5-10 lakhs 10-15 lakhs ≥ 15 lakhs

price2bhk * incomelevels Crosstabulation

incomelevels

Totalprice2bhk 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs

18-22 lakhs Count 20 13 3 1 37

% within price2bhk 54.1% 35.1% 8.1% 2.7% 100.0%

% within incomelevels 37.0% 13.8% 7.5% 8.3% 18.5%

% of Total 10.0% 6.5% 1.5% .5% 18.5%

22-26 lakhs Count 12 27 13 3 55

% within price2bhk 21.8% 49.1% 23.6% 5.5% 100.0%

% within incomelevels 22.2% 28.7% 32.5% 25.0% 27.5%

% of Total 6.0% 13.5% 6.5% 1.5% 27.5%

26-30 lakhs Count 11 30 11 2 54

% within price2bhk 20.4% 55.6% 20.4% 3.7% 100.0%

% within incomelevels 20.4% 31.9% 27.5% 16.7% 27.0%

% of Total 5.5% 15.0% 5.5% 1.0% 27.0%

>=30 lakhs Count 11 24 13 6 54

% within price2bhk 20.4% 44.4% 24.1% 11.1% 100.0%

% within incomelevels 20.4% 25.5% 32.5% 50.0% 27.0%

% of Total 5.5% 12.0% 6.5% 3.0% 27.0%

Total Count 54 94 40 12 200

% within price2bhk 27.0% 47.0% 20.0% 6.0% 100.0%

% within incomelevels 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 27.0% 47.0% 20.0% 6.0% 100.0%

116

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 21.366a 9 .011

Likelihood Ratio 19.839 9 .019

Linear-by-Linear Association

10.204 1 .001

N of Valid Cases 200

a. 4 cells (25.0%) have expected count less than 5. The minimum expected count is 2.22.

117

incomelevels * price2bhk Crosstabulation

Count

price2bhk

Total18-22 lakhs 22-26 lakhs 26-30 lakhs >=30 lakhs

incomelevels 1-5 lakhs 20 12 11 11 54

5-10 lakhs 13 27 30 24 94

10-15 lakhs 3 13 11 13 40

>=15 lakhs 1 3 2 6 12

Total 37 55 54 54 200

From the cross tabs that we have done it is analyzed that there is a relation between the price

of 2bhk and Income Levels. The cross tab were done in order to analyze the relationship

between the two.

From the above graph we can analyze that out of the 54 respondents who have an income of

1-5 lakhs there are 12 respondents who ready to pay 22-26 lakhs for a 2bhk at Prahaladnagar.

The next 94 respondents who have an income of 5-10 lakhs there are 27 respondents who

ready to pay 22-26 lakhs for a 2bhk at Prahaladnagar. The next 40 respondents who have an

income of 10-15 lakhs there are 13 respondents who ready to pay 22-26 lakhs for a 2bhk at

Prahaladnagar. The next 12 respondents who have an income of ≥15 lakhs there are 3

respondents who ready to pay 22-26 lakhs for a 2bhk at Prahaladnagar. So from this it can be

analyzed that the people who have an income of 5-10 lakhs and 10-15 lakhs are ready to pay

22-26 lakhs for a 2bhk apartment at their most preferred area that is Prahaladnagar.

118

HYPOTHESIS FOR CHI-SQUARE

Ho: price of 2bhk and income levels are not dependent

H1: price of 2bhk and income levels are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square

came to be 0.011 which is lower than 0.05. This shows that these two factors are not highly

correlated with each other and they are not dependent on each other. So through the chi-

square analysis we can say that the price of a 2bhk apartment at Prahaladnagar does not have

a dependency on the income levels of the customers. Thus the analysis shows that the price of

a 2bhk apartment at Prahaladnagar and income levels is not dependent on each other.

As the chi-square is less than 0.05 the Ho gets accepted and the H1 gets rejected.

119

Out of the following options for a 3 bhk apartment at New Prahaladnagar what is the maximum price you would want to pay?

30-35 lakhs 35-40 lakhs 40-45 lakhs ≥ 45 lakhs

Income (Rs.): - 1-5lakh 5-10 lakhs 10-15 lakhs ≥ 15 lakhs

price3bhk * income levels Cross tabulation

incomelevels

Totalprice3bhk 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs

30-35 lakhs Count 16 11 8 1 36

% within price3bhk 44.4% 30.6% 22.2% 2.8% 100.0%

% within incomelevels 29.6% 11.7% 20.0% 8.3% 18.0%

% of Total 8.0% 5.5% 4.0% .5% 18.0%

35-40 lakhs Count 12 36 12 2 62

% within price3bhk 19.4% 58.1% 19.4% 3.2% 100.0%

% within incomelevels 22.2% 38.3% 30.0% 16.7% 31.0%

% of Total 6.0% 18.0% 6.0% 1.0% 31.0%

40-45 lakhs Count 21 38 17 5 81

% within price3bhk 25.9% 46.9% 21.0% 6.2% 100.0%

% within incomelevels 38.9% 40.4% 42.5% 41.7% 40.5%

% of Total 10.5% 19.0% 8.5% 2.5% 40.5%

>=45 lakhs Count 5 9 3 4 21

% within price3bhk 23.8% 42.9% 14.3% 19.0% 100.0%

% within incomelevels 9.3% 9.6% 7.5% 33.3% 10.5%

% of Total 2.5% 4.5% 1.5% 2.0% 10.5%

Total Count 54 94 40 12 200

% within price3bhk 27.0% 47.0% 20.0% 6.0% 100.0%

% within incomelevels 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 27.0% 47.0% 20.0% 6.0% 100.0%

120

price3bhk * income levels Cross tabulation

incomelevels

Totalprice3bhk 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs

30-35 lakhs Count 16 11 8 1 36

% within price3bhk 44.4% 30.6% 22.2% 2.8% 100.0%

% within incomelevels 29.6% 11.7% 20.0% 8.3% 18.0%

% of Total 8.0% 5.5% 4.0% .5% 18.0%

35-40 lakhs Count 12 36 12 2 62

% within price3bhk 19.4% 58.1% 19.4% 3.2% 100.0%

% within incomelevels 22.2% 38.3% 30.0% 16.7% 31.0%

% of Total 6.0% 18.0% 6.0% 1.0% 31.0%

40-45 lakhs Count 21 38 17 5 81

% within price3bhk 25.9% 46.9% 21.0% 6.2% 100.0%

% within incomelevels 38.9% 40.4% 42.5% 41.7% 40.5%

% of Total 10.5% 19.0% 8.5% 2.5% 40.5%

>=45 lakhs Count 5 9 3 4 21

% within price3bhk 23.8% 42.9% 14.3% 19.0% 100.0%

% within incomelevels 9.3% 9.6% 7.5% 33.3% 10.5%

% of Total 2.5% 4.5% 1.5% 2.0% 10.5%

Total Count 54 94 40 12 200

% within price3bhk 27.0% 47.0% 20.0% 6.0% 100.0%

% within incomelevels 100.0% 100.0% 100.0% 100.0% 100.0%

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 17.141a 9 .047

Likelihood Ratio 14.966 9 .092

Linear-by-Linear Association

3.328 1 .068

N of Valid Cases 200

121

price3bhk * income levels Cross tabulation

incomelevels

Totalprice3bhk 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs

30-35 lakhs Count 16 11 8 1 36

% within price3bhk 44.4% 30.6% 22.2% 2.8% 100.0%

% within incomelevels 29.6% 11.7% 20.0% 8.3% 18.0%

% of Total 8.0% 5.5% 4.0% .5% 18.0%

35-40 lakhs Count 12 36 12 2 62

% within price3bhk 19.4% 58.1% 19.4% 3.2% 100.0%

% within incomelevels 22.2% 38.3% 30.0% 16.7% 31.0%

% of Total 6.0% 18.0% 6.0% 1.0% 31.0%

40-45 lakhs Count 21 38 17 5 81

% within price3bhk 25.9% 46.9% 21.0% 6.2% 100.0%

% within incomelevels 38.9% 40.4% 42.5% 41.7% 40.5%

% of Total 10.5% 19.0% 8.5% 2.5% 40.5%

>=45 lakhs Count 5 9 3 4 21

% within price3bhk 23.8% 42.9% 14.3% 19.0% 100.0%

% within incomelevels 9.3% 9.6% 7.5% 33.3% 10.5%

% of Total 2.5% 4.5% 1.5% 2.0% 10.5%

Total Count 54 94 40 12 200

% within price3bhk 27.0% 47.0% 20.0% 6.0% 100.0%

% within incomelevels 100.0% 100.0% 100.0% 100.0% 100.0%

a. 5 cells (31.3%) have expected count less than 5. The minimum expected count is 1.26.

122

incomelevels * price3bhk Crosstabulation

Count

price3bhk

Total30-35 lakhs 35-40 lakhs 40-45 lakhs >=45 lakhs

incomelevels 1-5 lakhs 16 12 21 5 54

5-10 lakhs 11 36 38 9 94

10-15 lakhs 8 12 17 3 40

>=15 lakhs 1 2 5 4 12

Total 36 62 81 21 200

From the cross tabs that we have done it is analyzed that there is a relation between the price

of 3bhk and Income Levels. The cross tab were done in order to analyze the relationship

between the two.

From the above graph we can analyze that out of the 54 respondents who have an income of

1-5 lakhs there are 12 respondents who ready to pay 35-40 lakhs for a 3bhk at Prahaladnagar.

The next 94 respondents who have an income of 5-10 lakhs there are 36 respondents who

ready to pay 35-40 lakhs for a 3bhk at Prahaladnagar. The next 40 respondents who have an

income of 10-15 lakhs there are 12 respondents who ready to pay 35-40 lakhs for a 3bhk at

Prahaladnagar. The next 12 respondents who have an income of ≥15 lakhs there are 2

respondents who ready to pay 35-40 lakhs for a 3bhk at Prahaladnagar. So from this it can be

123

analyzed that the people who have an income of 5-10 lakhs and 10-15 lakhs are ready to pay

35-40 lakhs for a 3bhk apartment at their most preferred area that is Prahaladnagar.

124

HYPOTHESIS FOR CHI-SQUARE

Ho: price of 3bhk and income levels are not dependent

H1: price of 3bhk and income levels are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square

came to be 0.047 which is lower than 0.05. This shows that these two factors are not highly

correlated with each other and they are not dependent on each other. So through the chi-

square analysis we can say that the price of a 3bhk apartment at Prahaladnagar does not have

a dependency on the income levels of the customers. Thus the analysis shows that the price of

a 3bhk apartment at Prahaladnagar and income levels is not dependent on each other.

As the chi-square is less than 0.05, H1 gets rejected and Ho gets accepted.

125

6.

FINDINGS

126

FINANCIAL ANALYSIS

In the financial analysis we calculated the NPV of the project. The NPV of the project came

to be + 1048.98. The NPV is vey high and as per the rule of NPV if the NPV is positive the

project should be accepted and carried forward. Thus, following that rule we suggest the

company to accept the project and to go for the further development of the project.

MARKETING ANALYSIS

From the analysis of the questionnaire we can conclude that Prahaladnagar Area is the most

preferred by all the respondents and they would prefer their new property to be situated in

that area. For that area the maximum price that they would pay for a 2bhk is between 22-26

and 26-30 lakhs and for a 3bhk between 30-35 and 35-40 lakhs.

The main amenities that the respondents feel to be there in the new property should be

security and good elevators which are being provided by the present proposed project.

Majority of the respondents preferred vitrified tiles as a flooring and Jaguar and cera as the

bathroom fittings. All these preferences of the customers are being provided in the current

proposed project. Moreover majority of them opted for 3 phase electrification which is also

being provided by the current proposed property.

Now looking at all these factors we can conclude that the present property will accomplish all

the needs of the consumers at the price they want to spend behind purchasing a new property.

Thus, we can say that the project will be encouraged and accepted by the customers as it

fulfils all their requirements.

127

7.

CONCLUSION

128

CONCLUSION

Real Estate Sector in Ahmedabad is in a constant change. Gone are the days when the

builders used to offer the customers with a high price property by providing fewer amenities.

Now the builders are going for more and more newer areas, are going for concept based

housing design, are providing more and more amenities to the customers at a very affordable

prices. The residential development is mainly happening towards the west and some in the

north side of the city. Though only a few townships have been announced as yet, what is

catching up in Ahmedabad are small residential developments with bungalows or apartment

complexes.

In today’s era one is seeing more bookings from real users rather than those who are booking

for investment. In spite of this, a good chunk of the bookings are from NRIs and out-of-state

people. The kind of property in demand has also changed in recent times and with it, the

pattern of construction. Today, the face of Ahmedabad is changing with modern residential

complexes and IT parks springing up. Three- and four-bedroom flats as well as bungalows

are common and more and more complexes are coming up with facilities such as jogging

tracks, children’s parks, health clubs, etc. The demand of the new buyer is quite different

from what it was earlier and developers are happy to supply accordingly

There is a steady stream of people from other states coming into the city due to job and

business opportunities here leading to higher demand. With a booming job market, there is an

influx of people from neighbouring cities like Rajkot and Baroda as well. This is probably

why builders and investors from outside are making inroads into Ahmedabad.

Ahmedabad is just emerging on the international investment front. The

real estate market lags somewhat the solid economic growth that the state

is enjoying. But the sector is growing fast and is well worth exploring

129

8.

BIBLIOGRAPHY

BIBLIOGRAPHY

130

WEBSITES:-

TimesofIndia.indiatimes.com – Ahmedabad

Hindubusinessline.com

Businessline.com

Hindustantimes.com

Magicbricks.com

Dlf.in - http://www.dlf.in/dlf/wcm/connect/DLF_Common/DLF_SITE

Parsvnath - http://www.parsvnath.com/corporate/aboutus.asp?about=journey

Raheja - http://www.krahejacorp.com/about-us.html

Pacifica companies - http://www.pacificacompanies.co.in/residential_projects.html

Omaxe Group - http://www.omaxe.com/residential.php

131

9.

ANNEXURES

132

Questionnaire

Dear Sir/Madame:

We are the students of an MBA program, and we are conducting a survey to know the buying prospects of the consumers regarding purchase of a house at Prahaladnagar. All the details provided by you would be kept confidential.

1. What type of house do you currently reside in?

Self - owned Rented Staying with parents/relatives

2. Since how long you are residing in your current house?

≤ 1 year 1-5 years 5-10 years 10-15years ≥ 15 years

3. What kind of property is it?

Flat/apartment - Low rise High rise

Bungalow

Tenement

Row Houses

Others please specify_________________________

4. Are you looking for a new house?

yes no

5. What property are you looking forward to buy?

Flat/Apartment - Low rise High rise

Bungalow

Tenement

Row Houses

Others please specify______________________________________

6. What are the reasons for changing your current house?

133

Due to a Change of lifestyle

For Security reasons

Inadequate size of the current apartment

For better and more improved Amenities

Because of distance from the current workplace

Because of the old style set up/construction of the house

7. What are the factors that would affect your property buying decisions?

( Tick Mark any one of them)

Variables Very Important Important Neutral Less important Least Important

Price

Location

Developer’s Profile

Brand image

Housing Loan Option

Property Features

Necessary Government Approvals

Vastu Compliance

Payment terms (cash/ Cheque)

8. According to you which are the most important factors that should be present in a new property?

( Tick Mark any one of them)

Variables Very Important Important Neutral Less important Least Important

Amenities (Garden, club house Etc.)

Security

Structure

Serenity

Elevation

Concept Based Housing Design

Proximity9. What kind of house would you prefer?

134

Furnished

Semi-furnished

Unfurnished

10. What amenities are the most important that would full fill your expectations?

(Rate them from 1 to 5:- 1 being the most important & 5 being the least)

Garden ______ satellite DTH ______

Children’s Play area ______ Elevators ______

Club House ______ Swimming pool ______

Intercom Facility ______ Fire fighting system ______

Parking space ______ Others ______

11. What type of flooring would you prefer in your new house?

(Rank them from 1 to 5:- 1 being the most preferred & 5 being the least)

Italian Marble ______ wooden flooring ______

Vitrified Tiles ______ others ______

Ceramic Tiles ______

12. What Brand of toilet furnishing accessories would you prefer in the new property?

(Rank them from 1 to 5:- 1 being the most preferred & 5 being the least)

Jacquar ______ Cera ______

Hindware ______ Kohler ______

others ______

13. What kind of Electrification would you prefer in the new property?

Single Phase

Two phase

Three phase

14. Where would you prefer your new property to be strategically located?

Heart of the city ( shahibaug, paldi, Navrangpura Etc.)

Suburbs ( Judges bungalow, prahaladnagar, Bopal, Etc.)

Amidst natural surroundings ( South Bopal, Gandhinagar Etc.)

15. Which area of Ahmedabad would you prefer to purchase your new house?

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(Rank them from 1 to 10:- 1 being the most preferred & 10 being the least)

Shahibaug ______ Nikol ______ Naroda ______

Chandkheda ______ Vejalpur ______ Bopal ______

Paldi ______ Thaltej ______ Vastrapur ____

Prahaladnaga ______

16. While selecting any particular area what are the criteria that you consider?

(Rate from 1 to 5:- 1 being the most preferred & 5 being the least)

Children’s School/ college ______ safety ______

Work place ______ Hospitals ______

Local transport ______ Cinema halls ______

Basic necessities ______ others ______

17. What are your perceptions about the New Prahaladnagar Area?

__________________________________________________________________________________________

_______________________________________

18. Out of the following options for a 2 bhk apartment at New Prahaladnagar what is the maximum price

you would want to pay?

18-22 lakhs 22-26 lakhs 26-30 lakhs ≥ 30 lakhs

19. Out of the following options for a 3 bhk apartment at New Prahaladnagar what is the maximum price

you would want to pay?

30-35 lakhs 35-40 lakhs 40-45 lakhs ≥ 45 lakhs

Name:-

Age:-

Gender: - male female

Marital status: - single married

Occupation: - self employed service professional business

Income (Rs.): - 1-5lakh 5-10 lakhs 10-15 lakhs ≥ 15 lakhs

Current residence:-

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