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.
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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.
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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
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1.
RESEARCH
METHODOLOGY
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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.
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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%
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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%
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% 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.
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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%
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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.
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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%
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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.
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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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