A SUMMER TRAINING PROJECT REPORT ON

CUSTOMER BUYING BEHAVIOUR

For the partial fulfillment of Master of Business Administration Program
UNDER THE GUIDANCE OF Mrs. PRIYA SRIVASTAVA
(Faculty MBA) SUBMITTED BY

IQBAL ZEESHAN
MBA III SEM

B.N.COLLEGE OF ENGINEERING & TECHNOLOGY, LUCKNOW

(Affiliated to GBTU)

ACKNOWLEDGEMENT
Like most effective endeavors, preparing this project was a collaborative effort. I owe a great debt to many individuals who helped me in successful completion of this project.

I would like to express my sincere gratitude to HDFC REALTY. for giving me an opportunity to complete my summer internship program in their esteemed organization.
I would not have completed this journey without the help, guidance and constant support and cooperation of certain people who acted as guides and friends along the way. I would like to express my deepest and sincere thanks to Dr. UPAMA MISRA (Director, B.N. College of Engineering & Technology), Dr. Vinitendra Pratap Singh {H.O.D, M.B.A Department} and Mrs. PRIYA SRIVASTAVA for their invaluable guidance and help. The project could not have been completed without their support and guidance. In this connection I would like to express my gratitude to my parents and friends who were constant source of inspiration during my summer training project report. At last I thank to Almighty for giving me the power to complete this project successfully.

IQBAL ZEESHAN
MBA II YEAR

PREFACE
As a part of MBA curriculum summer training was undertaken with HDFC REALTY one of the biggest and fast emerging real estate company in Delhi (NCR) region. It has set new trends and benchmarks of architectural excellence in the contemporary global scenario. The summer training was for 8 weeks ( 2 months ) duration .The purpose of this training was to have practical experience of working in an organization and to have exposures to various management practices in the field of marketing. The blend of learning and knowledge acquired during my practical studies at the company and in the field is presented in this Project Report. During the Training (Customers Survey) project was assigned for having practical exposure. This report is an attempt to identify the competitive strategies and methods used to create value and awareness in the minds of target customers. And also to identify competitive strength of HDFC REALTY projects with its major competitors like Amrapali Group, Gaur sons India Ltd., Ajnara group etc. The Project Report starts with the history and details of HDFC REALTYand also covers the general information about the company and its functional department of marketing.

EXECUTIVE SUMMARY

This project report is prepared as the partial fulfillment of two year M.B.A of BNCET Lucknow. This Research project is a compulsory part of the academics. This research is done after the completion of 1st year of PGDM program. In this research, I have attempted the research about consumer buying behaviour at hdfc realty. Dealing with competition is one of the key elements of modern marketing management (Kotler, 2000).The overall purpose of this research is to identify the factors which influence consumer buying behaviour of HDFC REALTYin Lucknow extension. The whole research is based on customers survey. I have done research on impact and effectiveness of our values which we are providing to our customers, which is one of the major tool used for analysing competition in the market. This report is an honest work towards the topic. There can be many short comings in it because of the lack of the time, unavailability of data and other constraints.

INTRODUCTION
Real estate is a 12$ billion (revenue) industry in India. There has been a rapid growth in the industry in the past few years. In the residential sector, a growing middle class is enjoying rising income levels. Combined with smaller household sizes, this demographic change has boosted demand for more modern housing and home loans. Meanwhile, increasing consumer spending power has encouraged growth in organized in organized retailing both feeding off and contributing to the spear of mall culture and the popularity of other large-scale retail property developments. In the commercial property segment, strong growth in the services sector particularly in the IT and ITES sectors and corporates growing scale of operations have led to greater demand for commercial space, including modern offices, warehouses and lodging space. Many Developers have substantial plans to increase both their size and geographical spread. They are also expanding into different kinds of properties, which can boost the firms franchise values and reduce concentration risks. However, managing and financing such activities can be a challenge, and puts a premium on financial flexibility, capital access and operational infrastructure. The project assigned to me has an objective to find and analyze the current scenario of Real Estate, covering the preferences of current as well as prospective customers. The major part of the project also analyses the size of investment in various states and mind set of the customers regarding this as well as the perceptions of customers towards major leading Real Estate players.

The study was carried out with a methodology, in order to collect as much primary data as possible. Data was collected by getting the questionnaires filled from Real Estate Agents across Lucknow. Once the data was collected, this data was analyzed using Microsoft Excel as a tool and various conclusions were drawn. This analysis is depicted in the form of various charts and graphs. Along with the questionnaires, Agents viewpoints on various issues were also taken in order to get a more insight into the Real Estate.

INTRODUCTION TO REAL ESTATE Real estate is a 12$ billion (revenue) industry in India. There has been a rapid growth in the industry in the past few years.100% FDI is allowed in real estate development subject to minimum scale norms of either: 25 acres in case of serviced plots or integrated townships; or 50,000 sq. mtrs. of built-up area for construction development projects.

Commercial and office complexes mushrooming in major Indian metros present a minefield of opportunities. Over 20 million new housing units required in the next 5 years. The real estate market is projected to grow to $50 billion by 2010 CAGR of over 30% p.a. is expected over the next five years. Increasing demand for commercial and office space especially from the rapidly growing Retail, IT and Hospitality sectors and the Urban Infrastructure Renewal mission is expected to give a boost to the sector.

Other factors include:

$11.5 billion earmarked over the next five years for 60 cities. Investment opportunities exist in almost every segment business ; About 20 million new units expected to be built in five years in office space for IT and five-fold increase in office space requirement over the next 3 years. Commercial space for organized retailing: 200 million sq. ft. by 2010. Hotels and hospitality: Over 50,000 new rooms in the next 5 years; Investment opportunity of over $50 billion in the next five years.

Various Real Investment Options are:

Real Estate Investment Options

Agriculture Land

Residential/Plotted development

Apartments/Villas

Commercial Spaces

Farm Houses

Real Estate Mutual Funds

AGRICULTURE LAND Agriculture Land in India is the most protected area by the State and Central Govt. Identification of Agricultural Land requires a bit of analysis about the rate and assessment of future development in the nearby area. Due to fast growing urbanization and development of infrastructure the price of agriculture land zooms quickly. Agricultural land can be given on contract to cultivators with sharing of crop model, to make small but regular tax-free earnings. Rural agriculture land is completely free from capital gains tax and income from lease out or sale of crop is also exempt as per the provision of IT Act, 1961.

RESIDENTIAL PLOTTED DEVELOPMENT Most state governments have loosened their fists and have implemented land reforms that make the conversion of agricultural land into residential land much easier. The process of township development takes a period of about 5 to 10 years. Initially, the prices of plotted development are quite low which rapidly increases with the pace of development and with the rise in inflation factor. APARTMENTS/VILLAS As per the assessment made in the Indian Habitat Policy 1998, the demand for houses in urban area is to the tune of 22 million houses. The gap in demand and supply in housing stock has thrown big investment opportunities. Booking at the launching stage and getting the exit at the completion stage ca offer shining returns on investments. In this process the stamp duty and other taxes can be legally avoided.

COMMERCIAL/RETAIL SPACES The retail boom in India has fueled huge demand for commercial/shopping spaces. Many MNCs and big corporate retailers prefer to take prime commercial properties on long-term lease basis. The option offers regular returns besides appreciation in capital value, taking both the returns together gives handsome return and a wonderful combination of regular and a wonderful combination of regular and long-term returns.

FARM HOUSES/SECOND HOMES Many developers are offering lifestyle with smart returns through farm houses/second homes. The offer comprises of sale of farm houses at affordable rates with professional property management giving lifestyle and capital appreciation together.

REAL ESTATE MUTUAL FUNDS Securities Exchange Board of India (SEBI) has recently allowed the launch of mutual funds which can invest in physical property. Many corporates such as HDFC and IDBI are in the process of launching real estate mutual funds.

FACTS AND FIGURES

In India Construction is the second largest economic activity after Agriculture. Investment in construction accounts for 11 percent of Indias Gross Domestic Product (GDP) and nearly 50 percent of Gross Fixed Capital Formation (GFCF). Construction accounts for nearly 65 percent of total investment in infrastructure and is expected to be the biggest beneficiary of the surge in Infrastructure Investment over the next five years. According to the Economic Survey, India has the potential to absorb US$ 150 Billion of Foreign Direct Investment in the next five years in the Infrastructure sector. The sector is expected to grow at a CAGR of 15 percent over the next few years.

The sustained growth and positive outlook for the future has increased focus on Infrastructure development. Opening of the Infrastructure development to private players, FDI and increased investment commitments from the govt. has thrown a host of opportunities for companies in the infrastructure development sector, innovative projects like the metro Rail and Sky Bus, along with the proposed SEZ projects have provided additional opportunities for the SMEs in the sector. While majority of the infrastructure development projects are given out by the government Agencies, the private sector is also actively participating through development projects like SEZs and commercial construction.

Along with the government bodies and funding agency, various infrastructure development companies, machinery and materials suppliers, ancillary suppliers and allied support industries would play an important role in meeting in demand the for infrastructure development. The Indian Infrastructure Sector is currently going through a vast transformation. The Governments decision to throw open the construction of roads, Bridges Airports and ports to the private sector and allowing 100 percent Foreign Investment in real Estate Projects has provided a boost to the construction Industry as well as generate demand for construction machinery. Housing and Infrastructure Projects like Roads, Bridges and Ports are expected to grow about 20 percent per annum for the next 15 years.

The new and expanding housing and infrastructure construction ventures have generated substantial demand for construction machinery manufacturing and servicing, including erection, commissioning and maintenance. Several multi national firms are already present in the country.

REAL ESTATE AS AN INVESTMENT OPTION

Is Real Estate A Good Investment Option? Are you fatigued by the diminishing income and risk-factors associated with mainstream investment avenues fixed deposits, stocks, mutual funds, etc.? Think `real estate': a lesser explored investment option. Why real estate investment stands out? Quantum of investment required is high Investment horizon is long Dual returns are available in form of rental income and capital Appreciation What are the promising avenues of real estate investment? Offices Shopping malls Retail outlets Industrial warehouses What is the current Indian real estate scenario? Periodic returns on commercial property ranges from 10 to 13 percent Per year

 The Indian real estate industry has a growth rate of 35 to 40 percent Annually The demand for real estate is picking up as the IT industries set up their Base in India or look for expansion in these cities. Top financial companies have recognized the advantage of India as a Business process outsourcing destination and had started expanding their business. Companies are increasingly switching over to renting office premises. This offers flexibility in operations and avoids locking capital. Companies operating in automobile design, auto components Manufacturing, computer aided design and drawing are also entering India in search of acquisition of space preferably as ready-to-occupy premises. Real estate developers are offering premises on long lease to the companies. Individual investors are benefiting from the developing commercial real Estate market in India by investing in pre-leased properties. Norris / Pies are investing in real estate as the rental income and capital Used to purchase the property is easily reparable .

What are funding sources supporting investment in real estate? Banks Financial institutions High net worth individuals Real Estate Mutual Funds

What are the procedures to be followed before investing in real estate? Find out credibility of the developer. Check out the attractiveness of property to tenants/ buyers Weigh future value potential Get to know the chances of project completion (in case its under Construction) Investigate the quality of project Explore the availability of financing option Take advice from a reputed and a credible real estate consultant. Consult a reputed financial institution Selecting a right option to invest hard earned-money is always a matter of big confusion. The decision making process requires in depth analysis of available options which suits the needs of a particular person or organization. A complete

analysis and overview of investment decision making with innovative solutions are given hereafter. INVESTMENT NEEDS The investment needs depend on the requirements of a particular person about the liquidity of funds and his capacity and temperament bear risk. The tax implication on return of investment to the investor is always a crucial matter for choosing the right option.

FACTORS AFFECTING INVESTMENT DECISION MAKING

Liquidity

After Tax ROI

Tax Safety Implication

Convenience To Invest

INVESTMENT OPTIONS: The following are the major options available to the investors:

PO/Bank/Govt.Securities

Bonds/Debentures

Bullion (Gold/Silver)

Shares/Mutual Funds

Real Estate

All the options have different features with respect to various factors having implication on investment decision making. The following Chart depicts the analysis of features of various options at a glance: *based on prevailing market rates **based on last 25 years track record

Comparative Features of Investment Options

Features Options P.O/Bank/Got. Securities Bonds/Debentur es Shares/Mutual Funds

Liquidity Options

Safety

Convenienc Tax e Good Benefits Good

Approx. ROI 6-8%*

Reasonabl Good e

Reasonabl Reasonabl Reasonable e Good e High Risk Reasonable

NIL

8-10%*

Reasonabl 12-15* e {With high level of

uncertainty } Bullion[Gold and Silver] Real Estate Reasonabl Reasonabl Not e e Good Good Good Reasonabl 5-7%** e so Good 14-24% {High Returns}

Convenient

GRAPH ON RETURN ON DIFFERENT INVESTMENT OPTIONS

30 25 20 15 10 5 0 PO/Bank/govt.se c. Bond/Deb. Shares/Mutual Fund Bullion(Gold/ silver) Real Estate

% from % to

REAL ESTATE AS AN INVESTMENT TOOL WITH SPECIFIC REFERENCE TO RAJASTHAN Population (2001 Census) 5,65,07,188 Urban population 23.38% Literacy rate - 61.03% Male - 75.7% Female - 43.9%

 Major industries Mineral based Agro based Heritage based

Rajasthan at a glance

Abundant availability of minerals. Open & responsive Government Proximity to Gurgaon & Delhi, which are now getting saturated.

 Relatively better law & order scenario as compared to many other States in North India. Very good living conditions Good civic infrastructure Residential, Educational and Medical facilities. Road, Power and Water. Avenues for re-creation and tourism.

Recent emphasis on technical manpower will yield results in near future. Easy access International Airport (Direct flights to Thailand,Singapore, Dubai). Continuously improving telecommunication infrastructure as a result of Free Right of Way facility. Strong focus now on Knowledge Sector at the highest level in State Government.

Jaipur: A Magnificent Metropolis in Making Salient Features of Jaipur Master Development Plan-2011: Master Development Plan 2011 has been prepared not only to meet the future requirement of the city and the region but also to tackle the day to day problems of the city. Jaipur is a fast developing city. By 2011 population of Jaipur is expected to

reach about 42 Lacs. The plan has been prepared to accommodate about 35 Lacs in the city & the remaining seven lacs in the satellite towns of Chomu, Bagru, Bassi, Achrol, Shivdaspura, Goner, Balawala, Jamwaramgarh, Kanota and Kakus etc. Jaipur is a tourist city. The plan provides for conservation and preservation of its architectural heritage and to augment tourist facilities. The land use plan along with the land use zoning code facilitates easy implementation of the master plan proposals. Mega Projects in Pipeline : Mahendra City (S.E.Z) on Ajmer Road3000 Acres World Trade Park Film City IT City Knowledge Corridor Ring Road Gems and Jewelry Market Rope-Way Medi-Tech City Proposed Projects:

 International Convention Centre Sports City Green field Airport International Golf Course DYNAMICS OF REAL ESTATE PRICING The Interest rate factor has a direct relationship with the pricing of the immovable property. Future properties are discounted by the market at a particular rate of discounting factor to calculate the present market value, when the discounting factor reduces by few points, the prices of immovable property increases many fold as the present value of the future property gets increased. The following chart shows the present value of Rs.1000 after 1 to 15 years. The chart clearly shows that present value of Rs.1000 after 15 years discounted @ 20% is Rs. 65, while if the same is discounted @ 10% the present value comes to Rs. 239, it is amazing to note that 50% (from 20% to 10%) curtailment in interest rates increases the present value from Rs. 65 to Rs. 239 reflecting a jump of 267%. This dynamic works in future property pricing. CASE STUDY TO UNDERSTAND THE DYNAMICS OF REAL ESTATE PRICING Year 2000 Belief: Agriculture Land in Shivdaspura is a future property of 2015 and at time the price level shall be Rs. 50.00 lakh per bigha. Discounting factor: 20%

Present Value (PV) in the year 2000, of Rs. 50.00 lacs in years 2015 was 50.00 lacs0.065* = 3.25 lacs ** approx *
%/ Nyrs. 10% 909 826 751 683 621 564 513 467 424 386 350 319 290 263 239 20% 833 694 579 482 402 335 279 233 194 162 135 112 093 078 065 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

*Discounting factor of Rs.1 after 15 years @20% p.a. **The same was the approx. then prevailing price. Belief: Agriculture Land in Shivdaspura is a future property of 2015 and at time the price level shall be Rs. 50.00 lack per bigha. Discounting factor: 10% Present Value (PV) in the year 2006, of Rs. 50.00 laces in years 2015 was 50.00 lacs0.424* = 21.20 laces ** approx *Discounting factor of Rs.1 after 9 years @ 10% p.a.

REAL ESTATE IN WORLD A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housinguntil they reach unsustainable levels and then decline. The questions of whether real estate bubbles can be identified and prevented, and whether they have broader macroeconomicsignificance are answered differently by schools of economic thought, as detailed below. The financial crisis of 2007 2010 was related to the bursting of real estate bubbles around the world, which had begun during the 2000s Identification and prevention As with all types of economic bubbles, whether real estate bubbles can be identified or prevented is contentious. Bubbles are generally not contentious in hindsight, after a peak and crash. Within mainstream economics, some argue that real estate bubbles cannot be identified as they occur and cannot or should not be prevented, with government and central bank policy rather cleaning up after the bubble bursts. Others, such as American economist Robert Shiller of the Case-Shiller Home Price Index of home prices in 20 metro cities across the United States, indicated in May 31, 2011 that a "Home Price Double Dip Confirmed"[3] and British magazine The Economist, argue that housing market indicators can be used to identify real estate bubbles. Some argue further that governments and central banks can and should take action to prevent bubbles from forming, or to deflate existing bubbles

Macroeconomic significance Within mainstream economics, economic bubbles, and in particular real estate bubbles, are not considered major concerns.[dubious discuss] Within some schools of heterodox economics, by contrast, real estate bubbles are considered of critical importance and a fundamental cause of financial crises and ensuing economic crises. The mainstream economic view is that economic bubbles bring about a temporary boost in wealth and a redistribution of wealth. When prices increase, there is a positive wealth effect (property owners feel richer and spend more), and when they decline, there is a negative wealth effect (property owners feel poorer and spend less). These effects, it is argued, can be smoothed by counter-cyclicalmonetary and fiscal policies. The ultimate effect on owners who bought before the bubble formed and did not sell is zero. Those who bought when low and sold high profited, while those who bought high and sold low (after the bubble has burst) or held until the price fell lost money. This redistribution of wealth, it is also argued, is of little macroeconomic significance. In some schools of heterodox economics, notably Austrian economics and PostKeynesian economics, real estate bubbles are seen as an example of credit bubbles (pejoratively, speculative bubbles), because property owners generally use borrowed money to purchase property, in the form of mortgages. These are then argued to cause financial and hence economic crises. This is first argued empirically numerous real estate bubbles have been followed by economic slumps, and it is argued that there is a cause-effect relationship between these. The Post-Keynesian theory of debt deflation takes a demand-side view, arguing that property owners not only feel richer but borrow to (i) consume against the

increased value of their property --- by taking out a home equity line of credit), for instance; or (ii) speculate by buying property with borrowed money in the expectation that it will rise in value. When the bubble bursts, the value of the property decreases but not the level of debt. The burden of repaying or defaulting on the loan depresses aggregate demand, it is argued, and constitutes the proximate cause of the subsequent economic slump.

Melbourne House Prices and Wages 1965 to 2010 Recent real estate bubbles 1990: Japan The crash of the Japanese asset price bubble from 1990 on has been very damaging to theJapanese economy,[4]. The crash in 2005 affected Shanghai, China's largest city.[5] In comparison to the stock market bubbles, real estate bubbles take longer to deflate: prices decline slower because the real estate market is less liquid. Commercial real estate generally moves in tandem with the residential properties, since both are affected by many of same factors (e.g., interest rates) and share the "wealth effect" of booms. Therefore this article focuses on housing bubbles and mentions other sectors only when their situation differs. 2007: many countries As of 2007, real estate bubbles had existed in the recent past or were widely believed to still exist in many parts of the world,[6]especially in the United States, Argentina,[7] Britain, Netherlands, Italy, Australia, Canada, New

Zealand, Ireland, Spain, Lebanon,France, Poland,[8] South Africa, Israel, Greece, Bulgaria, Croatia,[9] Norway, Singapore, South Korea, Sweden, Baltic states, India,Romania, Russia, Ukraine and China.[10] Then U.S. Federal Reserve Chairman Alan Greenspan said in mid-2005 that "at a minimum, there's a little 'froth' (in the U.S. housing market) it's hard not to see that there are a lot of local bubbles."[11] The Economistmagazine, writing at the same time, went further, saying "the worldwide rise in house prices is the biggest bubble in history".[12] Real estate bubbles are invariably followed by severe price decreases (also known as a house price crash) that can result in many owners holding mortgages that exceed the value of their homes. As of the end of 2010, 11.1 million residential properties, or 23.1% of all U.S. homes, were in negative equity at Dec. 31, 2010.[13] Commercial property values remain around 35% below their mid-2007 peak in the United Kingdom.[14] As a result, banks have become less willing to hold large amounts of property backed debt, a likely key issue in affecting a recovery worldwide in the near term. Housing market indicators

UK house prices between 1975 and 2006 adjusted for inflation.

Robert Shiller's plot of U.S. home prices, population, building costs, and bond yields, from Irrational Exuberance, 2d ed. Shiller shows that inflation adjusted U.S. home prices increased 0.4% per year from 18902004, and 0.7% per year from 19402004, whereas U.S. census data from 19402004 shows that the selfassessed value increased 2% per year. In attempting to identify bubbles before they burst, economists have developed a number of financial ratios and economic indicators that can be used to evaluate whether homes in a given area are fairly valued. By comparing current levels to previous levels that have proven unsustainable in the past (i.e. led to or at least accompanied crashes), one can make an educated guess as to whether a given real estate market is experiencing a bubble. Indicators describe two interwoven aspects of housing bubble: a valuation component and a debt (or leverage) component. The valuation component measures how expensive houses are relative to what most people can afford, and the debt component measures how indebted households become in buying them for home or profit (and also how much exposure the banks accumulate by lending for them). A basic summary of the progress of housing

indicators for U.S. cities is provided by Business Week.[15] See also: real estate economicsand real estate trends. Housing affordability measures

The price to income ratio is the basic affordability measure for housing in a given area. It is generally the ratio of median house prices to median familial disposable incomes, expressed as a percentage or as years of income. It is sometimes compiled
needed]

separately

for first

time

buyers and

termed attainability.[citation

This ratio, applied to individuals, is a basic

component of mortgage lending decisions.[citation needed] According to a back-ofthe-envelope calculation by Goldman Sachs, a comparison of median home prices to median household income suggests that U.S. housing in 2005 is overvalued by 10%. "However, this estimate is based on an average mortgage rate of about 6%, and we expect rates to rise," the firm's economics team wrote in a recent report.[16] According to Goldman's figures, a one-percentage-point rise in mortgage rates would reduce the fair value of home prices by 8%. [citation
needed]

The deposit to income ratio is the minimum required downpayment for a typical mortgage[specify], expressed in months or years of income. It is especially important for first-time buyers without existing home equity; if the downpayment becomes too high then those buyers may find themselves "priced out" of the market. For example, as of 2004 this ratio was equal to one year of income in the UK.[17]

Another variant is what the United States's National Association of Realtors calls the "housing affordability index" in its publications.[18] (The NAR's methodology was criticized by some analysts as it does not account for

inflation.[19] Other analysts, however, consider the measure appropriate, because both the income and housing cost data is expressed in terms that include inflation and, all things being equal, the index implicitly includes inflation). In either case, the usefulness of this ratio in identifying a bubble is debatable; while downpayments normally increase with house valuations, bank lending becomes increasingly lax during a bubble and mortgages are offered to borrowers who would not normally qualify for them (see Housing debt measures, below).

The Affordability Index measures the ratio of the actual monthly cost of the mortgage to take-home income. It is used more in the United Kingdom where nearly all mortgages are variable and pegged to bank lending rates. It offers a much more realistic measure of the ability of households to afford housing than the crude price to income ratio. However it is more difficult to calculate, and hence the price to income ratio is still more commonly used by pundits. In recent years, lending practices have relaxed, allowing greater multiples of income to be borrowed. Some speculate that this practice in the longterm cannot be sustained and may ultimately lead to unaffordable mortgage payments, and repossession for many.[citation needed]

The Median Multiple measures the ratio of the median house price to the median annual household income. This measure has historically hovered around a value of 3.0 or less, but in recent years has risen dramatically, especially in markets with severe public policy constraints on land and development.[citation needed]

Inflation-adjusted home prices in Japan(19802005) compared to home price appreciation in the United States, Britain, andAustralia (19952005). [edit]Housing debt measures

The housing debt to income ratio or debt-service ratio is the ratio of mortgage payments to disposable income. When the ratio gets too high, households become increasingly dependent on rising property values to service their debt. A variant of this indicator measures total home ownership costs, including mortgage payments, utilities and property taxes, as a percentage of a typical household's monthly pre-tax income; for example see RBC Economics' reports for the Canadian markets.[20]

The housing debt to equity ratio (not to be confused with the corporate debt to equity ratio), also called loan to value, is the ratio of the mortgage debt to the value of the underlying property; it measures financial leverage. This ratio increases when the homeowner takes a second mortgage or home equity loan using the accumulated equity as collateral. A ratio greater higher than 1 implies that owner's equity is negative.

[edit]Housing ownership and rent measures

The ownership ratio is the proportion of households who own their homes as opposed torenting. It tends to rise steadily with incomes. Also, governments often enact measures such as tax cuts or subsidized financing to encourage and facilitate home ownership. If a rise in ownership is not supported by a rise in incomes, it can mean either that buyers are taking advantage of low interest rates(which must eventually rise again as the economy heats up) or that home loans are awarded more liberally, to borrowers with poor credit. Therefore a high ownership ratio combined with an increased rate of subprime lending may signal higher debt levels associated with bubbles.

The price-to-earnings ratio or P/E ratio is the common metric used to assess the relative valuation of equities. To compute the P/E ratio for the case of a rented house, divide the price of the house by its potential earnings or net income, which is the market annualrent of the house minus expenses, which include maintenance and property taxes. This formula is:

The house price-to-earnings ratio provides a direct comparison to P/E ratios used to analyze other uses of the money tied up in a home. Compare this ratio to the simpler but less accurate price-rent ratio below.

The price-rent ratio is the average cost of ownership divided by the received rent income (if buying to let) or the estimated rent that would be paid if renting (if buying to reside):

The latter is often measured using the "owner's equivalent rent" numbers published by the Bureau of Labor Statistics. It can be viewed as the real estate equivalent of stocks' price-earnings ratio; in other terms it measures how much the buyer is paying for each dollar of received rent income (or dollar saved from rent spending). Rents, just like corporate and personal incomes, are generally tied very closely to supply and demand fundamentals; one rarely sees an unsustainable "rent bubble" (or "income bubble" for that matter). Therefore a rapid increase of home prices combined with a flat renting market can signal the onset of a bubble. The U.S. price-rent ratio was 18% higher than its long-run average as of October 2004.[21]

The gross rental yield, a measure used in the United Kingdom, is the total yearly gross rent divided by the house price and expressed as a percentage:

This is the reciprocal of the house price-rent ratio. The net rental yield deducts the landlord's expenses (and sometimes estimated rental voids) from the gross rent before doing the above calculation; this is the reciprocal of the house P/E ratio. Because rents are received throughout the year rather than at its end, both the gross and net rental yields calculated by the above are somewhat less than the true rental yields obtained when taking into account the monthly nature of rental payments.

The occupancy rate (opposite: vacancy rate) is essentially the number of occupied units divided by the total number of units in a given region (in commercial real estate, it is usually expressed in terms of area such as square meters for different

grades of buildings). A low occupancy rate means that the market is in a state of oversupply brought about by speculative construction and purchase. In this context, supply-and-demand numbers can be misleading: sales demand exceeds supply, but rent demand does not. [edit]Housing price indices Main article: House price index

The CaseShiller index (national, quarterly) 19872008, showing a housing bubble peaking in 2006. Measures of house price are also used in identifying housing bubbles; these are known ashouse price indices (HPIs). A noted series of HPIs for the United States are the CaseShiller indices, devised by American economists Karl Case, Robert J. Shiller, and Allan Weiss. As measured by the CaseShiller index, the US experienced a housing bubble peaking in the second quarter of 2006 (2006 Q2). [edit]Real estate bubbles in the 2000s By 2006, several areas of the world were thought to be in a bubble state, although this contention was not without controversy. This hypothesis was based on observation of similar patterns in real estate markets of a wide variety of

countries.[22] This includes similar patterns of overvaluation and excessive borrowing based on those overvaluations. The subprime mortgage crisis, with its accompanying impacts and effects on economies in various nations, has given some credence to the idea that these trends might have some common characteristics.

INDIA: REAL ESTATE SCENARIO

GROWTH ACROSS GEOGRAPHIES

Indias Property Sector: Credit Strengths In the residential sector, a growing middle class is enjoying rising income levels. Combined with smaller household sizes, this demographic change has boosted demand for more modern housing and home loans. Meanwhile, increasing consumer spending power has encouraged growth in organized in organized retailing both feeding off and contributing to the spear of mall culture and the popularity of other large-scale retail property developments. In the commercial property segment, strong growth in the services sector particularly in the IT and ITES sectors and corporates growing scale of operations have led to greater demand for commercial space, including modern offices, warehouses and lodging space. Many Developers have substantial plans to increase both their size and geographical spread. They are also expanding into different kinds of properties,

which can boost the firms franchise values and reduce concentration risks. However, managing and financing such activities can be a challenge, and puts a premium on financial flexibility, capital access and operational infrastructure. The property industry is also wrestling with oversupply in certain areas, such as in Indias commercial property sector, which may lead to rent reductions and value drops. Meanwhile, property firms must also cope with a reduction in customer advances on new construction, increasing land values (making acquisition and development deals tougher), rising interest rates since 2005, and increased difficulty in arranging capital. The latter is exacerbated by rising interest rates and property prices, which have encouraged banks to become more selective in granting loans as they try to preserve asset quality. Moreover, the Reserve Bank of India (RBI) has increased risk weighting for real estate exposure, which has served to curtail direct lending to this sector. The property business in India also faces political risks. These risks may come in various forms, but include the stalling of decisions over acquisitions or planning permission during elections, while some approvals have even been rescinded following elections and changes to state governments. Property financing remains largely conducted through conventional mortgages, with the volume of more modern, transparent and liquid products-such as shares in public property firms and CMBS-still negligible. This is partly due to high registration charges and transaction costs and structural impediments in the securitization legal framework. Furthermore, mutual funds lack the appetite of long-tenure deals, and mostly invest in high quality debt, while pension funds and insurance companies have yet to invest in structured paper either.

COMPANY PROFILE

HDFC Realty is a wholly owned subsidiary of HDFC. We have assisted individuals in acquiring homes valued at 5000 million rupees. HDFC is a pioneer housing finance institution in India and with over 30 years in operations has provided finance to over a million families in India. We are a team of real estate professionals facilitating Buying, Selling or Leasing of Residential / Commercial property. At HDFC Realty, we provide personalised attention to the individuals and corporates in their process of identifying properties. From understanding the requirement to organizing the site visits to completion of transaction, we make every effort to make the process of acquiring a property, hassle free and convenient. Presently our services are available in Mumbai, Navi Mumbai, Pune, Bangalore, Delhi / NCR, Kolkata, Kochi & Hyderabad.

For a property in India, you can depend on HDFC Realty, a subsidiary of HDFC, the pioneer housing finance major in India, which has assisted over 2 million homebuyers in the last 30 years. HDFC Realty helps to search properties in all major cities in India and has transacted in properties worth over Rs.500 crores. Our objective is to provide the buyer all the services under one roof, from property search to visits at the property site, and also help with the legal documentation.

COMPANY PRODUCTS

Hdfc realty Projects in Lucknow

CAPE TOWN

Overview
Redefining wonderful living with a 4-sided open campus. Spread out over approx 50 sprawling acres. Well appointed apartments with modern conveniences. A world-class leisure and residential community spread out over approx 50 sprawling acres, CapeTown has been envisioned as a complete, self-contained campus area built around the best of the facilities where every home is designed to the most demanding standards. 8 Variants of well planned (2,3,4 bedroom) apartments and penthouse towers, Luxury Villas spread over a green area, CapeTown from Hdfc realty is one of the best housing developments in the city.' CapeTown will comprise of upscale, well appointed apartments with modern conveniences such as a clubhouse, jogging track, swimming pool and more.

Features
What's Special- 82% open landscaped area - 4 sided open vastu friendly Plot - 100 Acre adjoining city greens - In-house clubs with exclusive facilities - 24 hour water & power supply - Metro Connectivity - Jogging track - Extensive sports facilities (swimming, basketball, volleyball, badminton, tennis etc. - Gymnasium - Herbal and Medicine Plantation - Massage therapy

Extensive sports facilities(including basketball, volleyball, badminton, tennis etc.) Swimming pool, Health Club, Medical Centre, Ayurvedic Massage Centre Round the clock customer care Reticulated gas supply to every kitchen Shopping complex with in the complex Ample parking space Well-designed complex with beautiful landscape Jogging Track, Gymnasium, Harbal and Medicine Plantation, Massage therapy within the campus. A well equipped beauty salon run by professionals to give you the very best. A club house with luxury elements that will help you be you when you need the break

ECOCITY

Overview

The roofs and walls, pergolas and water features, vegetation and choices of materials are all intended to create a micro-climate of a moderated, comfortable environment. Ecociti incorporates ecologically responsive urbanism at work in which the environments behind and between buildings are as important as the buildings themselves, and in which energy, water and resources are conserved whilst maintaining human comfort and nurturing the spirit. The roofs and walls, pergolas and water features, vegetation and choices of materials are all intended to create a micro-climate of a moderated, comfortable environment. The architecture of the complex is incorporates features of a high level of environmentally responsible design. The buildings in Ecociti shall have natural ventilation system, use of renewable energy through solar panels and utilization of other recycled material. Also we have studio apartments - EcoSuites in the complex.

Features

What's Special

- Committed to eco-centrism, Ecociti is about living the way nature wants you to. - Creation of a micro-climate of a moderated environment. - Use of anaerobic digestor for reduction of methane gas.

82% open landscaped area 2 Central Park of 3 acres & 2 Acres each within the complex Surrounded by 2 lush green sector parks In-house club with exclusive facilities Swimming pool, Health Club Badminton Court, Tennis Court & Amphitheatre 24 hour water & power supply Reticulated gas supply to every kitchen Shopping complex next to the complex Close to Sector-18, the entertainment hub of Lucknow Minutes away from reputed educational institutions like Amity, APJ, DPS etc. Vaastu friendly fengshui layout & design Ample parking space Well-designed complex with beautiful landscape Located at Lucknow-Greater Lucknow Expressway Structure: Earthquake Resistance R.C.C. frame structure & non-load bearing brick walls Communication & Security System Intercom: Intercom facility in all flats connected with security Security: Guard room at main Entrance for Efficient manual Garbage shoot FFS: Each & Every tower will be well equipped with Fire Suppression System (a) Dry: The Fire extinguishers will be available at each floor. (b) Sound: The Fire Alarm System will be available at each Floor (c) Wet: The provision of Wet Pipe line at each floor.

34 PAVALLION

Overview

Adjoining Lucknow City Center Metro Station International PGA standard 18 hole golf course nearby. Minutes away from reputed Educational Institutions like Amity, API, DPS, etc. Hdfc realty presents AMBER HEIGHTS, ARISTO HEIGHTS and AZURE HEIGHTS at 34 Pavilion, Lucknow where you will find fully loaded 2 and 3 bedroom apartments well connected with Delhi Metro. It is situated in the heart of Lucknow and just 2 kms. from Lucknow Golf Course. It is minutes drive from entertainment hub of Sector 18, Educational Institutes like AMITY, APEEJAY and DPS are within the reach. For recreation, you can join your friends at charmwood Club or Cappuccino Hut, especially designed to suit your life style. So now you can't miss a single fine moment of life.

Features
What's Special

- Four side open Condominiums - Adjoining Lucknow City Center Metro Station - Huge open landscaped area - Eco friendly environment - 100% power back-up - Vaastu friendly fengshui layout & design

Centrally located at sector-34 in the heart of Lucknow Charm wood club with gymnasium, spa and other facilities Cappuccino hut - a place to connect Ample parking space Acres of green within the complex Artificial water bodies with landscaped gardens International PGA standard 18 hole golf course near by Close to sec-18-the entertainment hub of LUCKNOW Minutes away from reputed Educational Institutions like Amity, API, DPS, etc. Gated community lifestyle High speed elevators in all towers CCTV Surveillance Boom barrier for seprate entry & Exit In-house maintainance agency for up keeping of the compound

APEX TOWERS Overview

Located at the main Lucknow Expressway. Part of the fully developed Emerald Court campus with numerous families already residing. Exclusive swimming pool and club house. Apex Towers situated in Emerald Court on the Greater LUCKNOW Expressway, combines both sense and sensibility to give you your money's worth and more. Just 5 minutes away from Delhi this apartment block is the tallest in the vicinity. Facing a 40 acre City Park the homes in this project boast of a beautiful view along with the proximity of serene surrounding to stretch or have fun with friends and family. The location boasts of several other advantages like the proximity to various leading schools like Step-By-Step, Mayoor, Lotus Valley, AMITY University and an upcoming multi-specialty hospital right across the road. A home at Apex Tower comes with the added benefit of a swimming pool with in the compound. The residents are also provided with a club house that offers the very best in class and service. Here, living is all about adding style to your life! And the best news is that the price for this high rise is not steep. Extremely affordable, these luxuriously designed and perfectly built apartments are available at very attractive prices!

Features
What's Special

- On the main LUCKNOW Expressway - Just 5 Minute Drive from Delhi - 24 hour water & power supply - Facing 40 acre city park - Vaastu friendly fengshui layout & design

On the main LUCKNOW Expressway Well-designed complex with beautiful landscape Just 5 Minute Drive from Delhi Part of the fully developed EMERALD COURT campus with numeral families already residing

Facing 40 acre city park Vaastu friendly layout & design Close to Sector-18, the entertainment hub of Lucknow Exclusive swimming pool & club house Leading schools like Step-By-Step, Mayoor, Lotus Valley, AMITY University

in close proximity

Next to the upcoming multi-specialty hospital State-of-art shopping area within the complex 24 hour water & power supply Security System with intercom, CCTV system

PROJECTS IN LUCKNOW EXTENSION AND GREATER LUCKNOW

CZAR

Overview

Modern day opulence prevails here Czar Suites are being uniquely developed as two side open plots on Faridabad Lucknow Gurgaon (F-N-G Corridor), which has 130 metres wide road. Beyond adjectives. Beyond hyperbole. This is the real thing. Admittedly not for everyone, Czar Villas are the ultimate limited edition living experience. Each villa is unique and captures the spirit of independent living spaces with a blend of community living. With meticulously designed aesthetic interiors, they are the spaces so vibrant that while you enjoy the best living style, you and your family will create the best moments. Moments that you will wish like framing to adorn your wall for all times to come. And you can have all this without having to pay through your nose. GreaterLucknow One of the largest industrial townships of Asia, is a young, planned, integrated vibrant city where world class infrastructure provides numerous matchless facilities. Given its advantages, Greater Lucknow has always been a preferred choice of Hdfc realty to offer various ultra-modern projects to its customers.

Adjacent to the project site, there is upcoming Night Safari, Formula1 Race Trace, Metro Corridor and proposed International Airport at Greater Lucknow. Truly, its a perfect location for the perfect moments.

Features
What's Special - 85% open landscaped area - Reticulated gas supply to every kitchen - Ample parking space - In-house clubs with exclusive facilities - 24 hour water & power supply - Next to Film city - NRI city Biotech City - IT City - Medical City etc.

Central Park of 6 acres within the complex 60 units of super luxuary centrally air-conditioned apartments and penthouses Four side open apartments and Penthouses with an individual identity 24 hour water & power supply International PGA standard 18 hole golf course near by Swimming pool, Health Club, Badminton Court Tennis Court & Amphitheatre State-of-art shopping mall within the complex & across the road Close to Sector-18, the entertainment hub of Lucknow Minutes away from reputed engineering and management intitutions Vaastu friendly layout & design

Upcoming Night Safari, Formula1 Race Track, Metro Corridor and International Airport adjacent to site Security System with intercom, CCTV and separate electronic security lock with camera and access control Well-designed complex with beautiful landscape.

OXFORD SQUARE

Overview

Independent Floors A perfect blend of open spaces, community living and conveniences Welcome to the world class, independent living spaces at Oxford Square, Greater Lucknow. These Independent Floors provide a freedom of living where you are not forced to live in claustrophobic environment. Each of the independent floors is designed to give you a feel of life in a villa and a great sense of space. Independent Floors at Oxford Square is truly an address you have always aspired for.

With exclusive features like a terrace garden, a splash pool and a lot more, life at Oxford Square is a perfect blend of open spaces, community living and conveniences. You will not be forced to share your world with anyone else. With state-of-the-art security, gated complex, wide internal roads, shopping complex, modern club, gym etc., you can now enjoy independent living on your very own floor

Features
What's Special - Possession in 18 months - Duplex with personal splash pool & terrace garden - Recreation centers - Choice of 2, 3 & 4 BHK, G + 2 floors - Vaastu friendly fengshui layout & design - Duplex apartments on 2nd floor - Primary creche School in the complex

Fully air conditioned independent floors with complete wood work. Possession in 18 months Duplex with personal splash pool & terrace garden Never before, Villas type independent floors on 22 acres of prime land at Gr. Lucknow Choice of 2, 3 & 4 BR, G + 2 floors Exclusive lawn for ground floor Exclusive terrace garden and splash pool for 2nd floor duplex#

Independent parking for all floors Lush green environs In house club with all modern facilities

UPCOUNTRY

Overview

Now Experience Beachside Living without Leaving NCR. Choose between expandable Villas and High rise apartments. Imagine stepping out of your home and stepping on the cool sands of the beach, early in the morning. Or basking in the winter sun. Imagine going to sleep as gently splashing waves sing a lullaby. Imagine all this with premium sporting, clubbing and leisure facilities. Now no need to imagine it. Experience it all right here in Yamuna Expressway, 0 kms from Greater Lucknow. At Holiday Village. An adddress reserved for the select few. Part of a completely self-sustained

development of Upcountry, a 100 acre landmark, that's nothing short of an independent country. Holiday Village at Upcountry. NCRs first beachside homes.You will have a complete European experience, with an Indian price tag being the only gentle reminder where you actually are. Spanish Villas This is the real thing. Admittedly not for everyone, Spanish Villas at Upcountry is the ultimate, limited edition living experience. Each villa is unique and captures the spirit of Spain. Enjoy some Spanish cuisine and music. For sure youll know Pescaito frito never tasted and sFlamenco never sounded so Spanish before. Available in plot sizes of 90, 125, 200, 500 and 1000 sq. yards, these expandable villas give you the flexibility and space to choose how and when to shape it to match your lifestyle.

Roman \Castles Roman Castles at Upcountry are spaces so exclusive that while the world thirsts for it, just a chosen few get to experience it. Making it not only the best living style but also an experience thats priceless. Meticulously designed aesthetic interiors, with a little bit of Colosseum, Pantheon and Bocca della Verita, will remind you of the age-old adage that Rome wasnt built in a day.

Features
What's Special

- Man-made lakes - Beaches - Recreation centers - Convenience Stores - Vaastu friendly fengshui layout & design - Pleasurable greens and a lot more all around

Spread over sprawling 100 acres of prime land on Yamuna Expressway, a part of grand civilization, Hdfc realty Upcountry.

Spread over sprawling 100 acres of prime land on Yamuna Expressway, a part of grand civilization, Hdfc realty Upcountry.

Expandable Independent Villas and Castles Available in various sizes 90 sq yds. / 125 sq yds. / 200 sq. yds. / 500 sq. yds. / 1000 sq. yds. World class amenities like manmade beach and lake, lush-green landscaping, fully loaded recreational centre with Gym, Squash Courts, Swimming Pool and much more.

Shopping Mall, School, Hospital, Hotel, Plotted Development, Hi-rise condos, second inning home inside.

PROJECTS IN GHAZIABAD, MORADABAD & MERRUT

LIVINGSTON Ghaziabad

Overview
Being developed within the premises of Indias first global city Crossings Republik in Ghaziabad

Livingston is a part of integrated township spread across 360 acres Offers 70% of open area within each plot World-class amenities within close vicinity Hdfc realty Livingston is set amidst beautiful lush greens to make you feel rejuvenated. This spectacular township is located in the heart of the country and offers 70% of open area within each plot. The open spaces at Livingston enthrall not just your mind, but also your spirit. The spaces have been designed keeping in mind your need for expansive spaces that capture your imagination. The township is a synonym for clutter free, pollution free, rejuvenating atmosphere that fosters harmonious co-existence with natural surroundings. Replete with facilities such as school, shopping mall, golf course etc, it is built with a view to provide you world-class amenities within close vicinity. Livingston is being developed within the premises of Indias first global city Crossings Republik in Ghaziabad. This project is an amalgamation of 7 real estate companies including

Hdfc realty Group. All companies conceived together a global city which is culminated in the form Crossings Repulik and within this global city Livingston is being developed by Hdfc realty Group. Project location of Livingston which falls under territory of Ghaziabad is rapidly growing and featured in Newsweek International as the 10 top most dynamic cities of the world during the year 2006. It is on its way to becoming one of the most advanced and top class cities in the world and stands as the perfect investment and housing destination. Livingston is a part of integrated township spread across 360 acres. It is committed to provide you a luxurious lifestyle in your dream home within this township. Replete with all facilities one can possibly think of, such as ultra modern apartments, golf course, clubs, swimming pool, shopping malls, daily needs stores, hospitals and a gymnasium. You shall be greeted with an absolutely blissful environment devoid of chaos and pollution, where lush greens and wide open spaces await you. You feel like you are in a world so different and pure. Located within close vicinity to Lucknow, Greater Lucknow, New Delhi, Airport, Railway Station a developing Metro line, this is the place you want to spend the life that you deserve.

Features
What's Special

- 70 percent green area - 3 sided open vastu friendly Plot - 24 hour water & power supply - Vaastu friendly fengshui layout & design

Swimming pool with kids pool Open & covered parking Gymnasuim with sona & steam bath Club House with squash & Tennis court Yoga meditation deck & community lawn. Wi-Fi enabled campus

PALM GREEN Moradabad

Overview

Premium apartments with all infrastructure and luxuries Offer you true-value for money homes that are the best in quality construction and finest facilities

A 5 star Hotel is located adjacent to project site Hdfc realty is committed to provide world class living ambience not only at Metros and Big Cities but also in comparatively small but rapidly emerging cities like Moradabad in Uttar Pradesh. Our one of the flagship project is taking shape right here as in form of Palm Greens, Moradabad. In Palm Greens project, Hdfc realty is providing premium apartments with all infrastructure and luxuries of Metro away from actual metro city. Palm Greens is concept of residential project in the lap of nature and ecology with the ample open green space. Hdfc realty has constantly strived to offer you true-value for money homes that are the best in quality construction and finest facilities. Hdfc realty Palm Greens Moradabad is set amidst beautiful lush greens to make you feel rejuvenated. Hdfc realty Palm Greens provides you 70% of the open area and an option of 2, 3 & 4 Bed rooms premium apartments. A 5 star Hotel is located adjacent to project site which is on National Highway - 24 (Delhi - Hapur - Gajraula - Moradabad), approx 150 KM from NCR Delhi. Besides that Palm Greens is well connected by railway, nearest railway station is just 13 KM away, and by a proposed Airport (Mundapande) is just 20 KM away. Your stay in Palm Greens, Moradabad, is surely going to be spiced up. So be ready to experience a world-class

infrastructure in Hdfc realty Palm Green Moradabad with its screen surroundings and an ultra modern life style all within your reach in a pollution free environment

Features
What's Special
- 75

percent green Area

- Close to Tirthankur Medical college - SEZ (Near 6 kms) - Garden with Extension Plantaion - In-house Playway School Day care for children

Near to 5 Star Hotel Holiday Regency Near Expomart Close to Tirthanker Medical college Near Delhi-Lucknow Highway (NH-24) 75 percent green Area Garden with Extension Plantation Swimming Pool with Baby Pool In-house Playway School Day care for children In-house club with Gymnasium and exclusive facilities Baby bedroom, kitchen, bathtub with imported shower panel R.O. water plant Dedicated parking Underground cabling 100% power backup

DPS School within proximity Hi-tech round-the-clock security system with CCTV arrangement SEZ (Near 6 kms)

SPORTS CITY Merrut

Overview

A unique design approach unifying modern architecture with sports facilities Close to the hustle bustle of Meerut Designed for healthy and balanced lifestyle in a green sanctuary

Welcome to Meerut Sports City ! Put on your sports attire, let your hair down & let the surroundings take over. Close to the hustle bustle of Meerut yet in the lap of nature lies a delightful hidden gateway designed for healthy and balanced lifestyle in a green sanctuary. A unique design approach unifying modern architecture with sports facilities will include beautifully designed high-rise tower & superb villas along with a full size cricket stadium, boating lake and putting greens. Come, discover the joy of healthy & playful living.

Features
What's Special

- Fully equipped sports complex spread- across 12 acres. - 24 hour water & power supply - Vaastu friendly fengshui layout & design

Uniquely arranged high-rise clusters offering spectacular views of lush green parklands and serene water bobies.

Ultra-modern

club

house

with

state-of-the-art

Gymnasium

and

Swimming

Pools.

Retail mall to take care of all your leisure and daily needs.

School affiliated with a trusted name to build your kid's future. 200 bed hospital with all the modern facilities to take care of your dear ones. 24x7 power back-up and around the clock security.

Competitors Of Hdfc realty

1. Amrapali 2. Paras 3. Paramount group 4. Logix Group 5. Wave Infratructure 6. Gaur Sons Limited 7. Gulshan Homes 8. Sikka Infrastructure 9. Exotica 10. 3 C

Share Market Position

FINANCIAL PERFORMANCE OF THE COMPANY AT A GLANCE

Total Income increased by 57.23%. Operating Profit increased by 31.78%. Net Profit increased by 39.84%. Net Worth increased by 20.49%.

In future, Company will continue to perform satisfactorily, both in the term of size and profitability.

Government Policy
At the Government level many new policy initiatives have been taken recently to boost the real estate Property in India . These policy decisions will lend a stimulus and impetus to the industry. It is beyond doubt that the new initiatives will unlock the potential of the sector. Also, along with the stimulus package announced by the Government, the Reserve Bank of India (RBI) has taken a definitive step whereby banks are allowed to devise new schemes beneficial to the property sector.

As part of the Government initiatives to boost real estate boom sector India, RBI has declared concessional schemes for the real estate sector. Such initiatives include: * Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly larger number of states. * In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres. * 51 per cent FDI allowed in single-brand retail outlets and 100 per cent in cash-and-carry

through the automatic route. * Full repatriation of original investment after three years. * Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million, respectively. * 100 per cent FDI allowed in realty projects through the automatic route. Further, in its endeavour to initiate new policies to boost the real estate sector in India, the Ministry of Commerce and Industry, Government of India, has taken steps to reduce the time taken to develop special economic zones (SEZs) by simplifying the procedures to get the tax-tree industrial enclaves notified. Now developers can easily get their land classified as an SEZ at the outset itself by producing title deeds to prove their ownership. Again, the Government has announced several concessions in the Budget 2008-2009.

New Government initiatives to boost sector of Real Estate India include granting a tax holiday on profits from initiates in the financial year 2007-2008. In order to enjoy this benefit, the housing projects should be of the affordable housing unit type of 1000 to 1500 square feet. Another condition is that such projects should be completed by March 1, 2012. Further, the Finance Ministry has allocated US$ 207 million to grant 1% interest subsidy on home loans up to US$ 20, 691. In order to avail this benefit, the cost of the home should not be above US$41, 382. It is believed that these initiatives will be add further impetus to the real estate sector in the country.

Future Plan

We are constantly working for the development and shaping of land as well as contributing in the progress and growth of nation. In our commercial segment, we have developed Malls, Multiplexes and are now expanding fast into Starred Hotels Category. Next in the line is development of IT Parks in metros. Hdfc realty Group is all set to foray in the area of development of IT & Software Parks, where conglomeration of IT & ITES companies will

establishes their organizations and business ventures. Proposed IT Park, Greater Lucknow will provide world class infrastructure with ultra modern facilities and business for its client companies

Research methodologies
The research design indicates the type of research methodology under taken to collect the information for the study. The researcher used both descriptive and analytical type of research design for his research study. The main objective of using descriptive research is to describe the state of affairs as it exists at present. It mainly involves surveys and fact finding enquiries of different kinds. The researcher used descriptive research to discover the characteristics of customers. Descriptive research also includes demography characteristic of consumer who use the product. The researcher also used analytical research design to analyze the existing facts from the data collected from the customer.

Research instrument:
The Structured questionnaire is used as the research instrument for the study.

DATA COLLECTION METHOD:

Primary data: Primary data is the new or fresh data collected from the respondents through structured scheduled questionnaire.

Secondary data: The secondary data will be collect through the structured questionnaire, past record.

Tool for analysis:

i)factor analysis. ii) Chi square test.

DATA ANALYSIS Interpretation: Qus2: How do you come to know about hdfc realty ltd.? no of pepople advertisement Friends channel partener sales executive other sources 14 16 14 6 0

Chart Title
advertisement sales executive friends other sources 12% 28%

0% channel partener

28%

32%

Interpretation: from the survey, we got the response of customer. 28% customer know the hdfc realty through advertisement and channel partner, 32% customer know the hdfc realty through their family/friends. And 12% knows the hdfc realty through sales executive. from the above response of the peoples it is clear that family/friends opinion play a major role in projecting an image of a new brand or project in customers mind.

Qus3:have you purchased any property from hdfc realty: yes no 10 40

Chart Title
yes no

20%

80%

Interpretation: in the 3rd qus, 20% customer responds as a old customer and 80% respondent as a new customer.

Qus4: if you are a investor of hdfc realty, how long have you been buying it? below 6 month 0.5-1 year 1-2 year above 2 year

Chart Title
below 6 month 0.5-1 year 1-2 year above 2 year

12%

6%

34%

I
48%

Interpretation: from the above pie-chart, we can conclude that in last 1 year 82% new investor join the hdfc realty.

Qus5: advertisement of hdfc realty play a influential role in your buying decision: strongly agree Agree Average Disagree strongly disagree 11 28 10 1 0

Chart Title
strongly agree agree average 2% 0% 20% 22% disagree strongly disagree

56%

Interpretation: from above data,22% people are strongly agree and 56% are agree with this statement that advertisement of hdfc realty play a influential role in your buying decision.

Qus6: factors influence your purchase decision : 1.affordable price: rating 5pts 4pts 3pts 2pts 1pts 12 27 10 1 0

Chart Title
5pts 4pts 3pts 2pts 1pts 2% 0% 20% 24%

54%

Interpretation: from the above data, we can conclude that 78% people think that they go for those builders which provide them affordable prices. 2.possession time: rating 5pts 5 4pts 15 3pts 21 2pts 9 1pts 0

Chart Title
5pts 4pts 3pts 0% 18% 10% 30% 42% 2pts 1pts

Interpretation: in the above pie-chart, 42% people say that possession time somewhere affects their buying behavior but not strongly effects.

3.brand image: rating 5pts 4pts 3pts 2pts 1pts 11 28 7 3 1

Chart Title
5pts 4pts 3pts 2pts 1pts 6% 2% 14% 22%

56%

Interpretation: 78% people agree with this fact that brand image plays an influential role in investing any property. 4.previous experience: rating 5pts 4pts 3pts 2pts 1pts

8 22 12 6 2

Chart Title
5pts 4pts 4% 12% 24% 44% 16% 3pts 2pts 1pts

Interpretation: 60% people think that previous experience is the most important factor in the purchasing of any prop 16% people think that previous experience doesnt play any significant role in property purchase.

5.advertisement: rating 5pts 4pts 3pts 2pts 1pts 0 10 22 9 9

Chart Title
5pts 4pts 3pts 0% 18% 18% 44% 20% 2pts 1pts

Interpretation: 20% people think that advertisement influences their purchase decision, and 44% people think that a decision. 6.family/friend opinion:

Chart Title
5pts 4pts 3pts 0% 6% 24% 40% 2pts 1pts

30%

Interpretation: 70% people say that family/friends opinion is necessary for them before investing in any property. people say that they also concern their friends opinion before investing in any property. 7.amenities: rating 5pts 13 Chart Title 4pts 17 3pts 9 5pts 4pts 3pts 2pts 1pts 2pts 8 1pts 3
16% 18% 34% 6% 26%

Interpretation: 60% people look for facility provided by builder under their project before investing into it.

Qus 7: rate your satisfactory level of hdfc realty based on the following Features. 1.Price: rating 5pts 4pts 3pts 2pts 1pts 5 13 22 8 2

Chart Title
5pts 4pts 4% 16% 10% 26% 3pts 2pts 1pts

44%

Interpretation: 36% people think that hdfc realty provide the flats at affordable price. 44% people says that hdfc realty provide flats at normal prices. 2.quality: rating 5pts 4pts 3pts 2pts 1pts 2 16 19 9 4

Chart Title
5pts 4pts 3pts 4% 8% 18% 32% 2pts 1pts

38%

Interpretation: 22% people finds hdfc realtys material quality is very satisfactory. 38% people are satisfied with material quality of hdfc realty. 3.after sale service: Rating 5pts 4pts 3pts 2pts 1pts 0 0 7 22 21

Chart Title
rating 5pts 4pts 0% 0% 14% 42% 3pts 2pts 1pts

44%

Interpretation: from the above mentioned data, we can easily conclude that hdfc realty is poor at their after sale service. 4.channel partner: Rating 5pts 4pts 3pts 2pts 1pts 6 14 17 8 5

Chart Title
5pts 4pts 3pts 2pts 1pts

10% 16%

12% 28%

34%

Interpretation: 28% people are very satisfied with hdfc realtys channel partner, whereas 34% people are neutral on that.26 % people are not happy with channel partners.

5.possesion time:

rating 5pts 4pts 3pts 2pts 1pts 3 5 19 21 2

Chart Title
5pts 4pts 4% 6% 42% 38% 10% 3pts 2pts 1pts

Interpretation: 54% people are satisfied with hdfc realtys possession time where as 46% are not happy with the possesion time provided by hdfc realty.

Findings and conclusion: That family/friends opinion plays a major role in projecting an image of a new brand or project in customers mind. New investors are joining hdfc realty at very high rate. Customers are satisfied with hdfc realty as far as price and material quality is concerned. Customers are very disappointed with after sales service and inventory management of hdfc realty. Advertisement may influence buying behaviour of customer. Customer also goes with brand image.

RECOMMENDATION: hdfc realty has to advertise more than they are doing now. They have to improve their after sales service. They need the coordination between different departments. they need to improve inventory distribution system.

LIMITATION

a) The questionnaire is not focused on lower middle class 1customer. b) Questionnaire filled by the customer of the projects conceded in Lucknow and Lucknow extension. c) Project doesnt include eco village I, eco village II and eco village III.

OVERALL EXPERIENCE In hdfc realty I learn how operation department works in a real estate firm. I learned how to check the allotment files of the customers. I also analyze their projects USP. I learn how to satisfy the customer and their query. at hdfc realty I learn how a real estate firm works and where they can improve.

ANNEXURE Bibliography: www.hdfc realtylimited.com www.propertyguru.com www.99acres.com www.realitynews.com

Questionnaire: A study on customer buying behavior in hdfc realty 1. NAME: contact no: project name:

2. How do you come to know about hdfc realty ltd.? Advertisement Friends channel partner Sales executives Any other source (Specify) 3. Have you purchased any property from hdfc realty ltd before? Yes No 4. If you are a investor of hdfc realty, how long have you been buying it? Below 6 months 0-1 year 1-2 year Above 2 year 5.do you think the adverrtisement of hdfc realty has a major influence in your buying decision? Strongly agree agree average Disagree strongly disagree 6. Please rate the following factors which influence your purchase decision. (Strongly agree-5, Agree-4, Neutral-3, Disagree-2, and Strongly Disgree-1) s.no Factors 1 Affordable price 2 Possession time 3 Brand image 4 Previous experience 5 Advertisement 6 Family/friend opinion 7 Amenities

Rating

7. Please rate your satisfactory level of hdfc realty b a s e d on the following Features. (Highly satisfied-5, Satisfied- 4, Normal-3, Poor- 2, Very poor- 1) s.no Factors Rate 1 Price 2 Quality 3 After sales service 4 Channel partner 5 Possession time