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A Project Report on “FANTASIA BUSINESS PARK “ HAWARE INFRASTUCTURE PVT.LTD & “Growth of Real Estate Sector with in 5years” ALLIANCE PROPERTY SERVICES PVT. LTD . BY YOGESH ARUN SONI UNDER THE GUIDANCE OF “RAJKUMAR GHOSH” SUBMITTED TO “UNIVERSITY OF PUNE ” In partial fulfilment of the requirement for the award of the degree of master of business administration (MBA) trough ASM’S INSTITUTE OF BUSINESS MANAGEMENT& RESEARCH 1

Yogesh Haware Project

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Page 1: Yogesh Haware Project

A Project Report on

“FANTASIA BUSINESS PARK “

HAWARE INFRASTUCTURE PVT.LTD

& “Growth of Real Estate Sector with in 5years”

ALLIANCE PROPERTY SERVICES PVT. LTD .

BY

YOGESH ARUN SONI

UNDER THE GUIDANCE OF

“RAJKUMAR GHOSH”

SUBMITTED TO

“UNIVERSITY OF PUNE ”

In partial fulfilment of the requirement for the award of the degree of master of business administration (MBA) trough

ASM’S INSTITUTE OF BUSINESS MANAGEMENT& RESEARCH

(I.B.M.R) CHINCHWAD PUNE 411019

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CERTIFICATE

This is to certify that the Project Report at

“FANTASIA BUSINESS PARK " ,VASHI NAVI MUMBAI

Submitted in partial fulfillment of the requirements for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

To

PUNE UNIVERSITY

is a record of bonafide training-cum-project carried out

By

YOGESH ARUN SONI

Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree /diploma /fellowship or similar titles or prizes.

FACULTY GUIDE (IBMR)

Name: Mr. RAJKUMAR GHOSH

Signature:

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COMPANY CERTIFICATE

STUDENT’S DECLARATION

I hereby declare that the Project Report conducted at

FANTASIA BUSINESS PARK , NAVI MUMBAI

Under the guidance of

MR.RAJESH RUPAREL

Submitted in Partial fulfillment of the requirements for the

Degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

By

PUNE UNIVERSITY

is my original work and the same has not been submitted for the award of any other Degree / Diploma / Fellowship or other similar titles or prizes.

Place: VASHI ,NAVI MUMBAI RAJESH RUPAREL

Date: MARKETING MANAGER

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ACKNOWLEDGEMENTS

I take the privilege to express my sincere thanks to

Mr. suresh haware ; “HAWARE BUILDERS” who always found time and

gave me their undivided attention while discussing the problems and issues

that arose during the course of the project, besides explaining the work and

tasks that have to be done in the organization. I would also like to express my

sincere gratitude to my faculty guide Mr .Rajkumar ghosh,

for aptly supporting me throughout the project, and for always

listening patiently to all my doubts and queries and also suggesting the

solutions. His feedback has been of immense help. This project would not have

been possible without his words of encouragement and directions. I would also

like to thank the director of my institute Asm’s institute of business management &

research. professors and lecturers for their support

continuous motivation. I would be failing in my duty, if I don’t thank executives

and staffs of the organization, as without their support the project would

not have materialized.

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TABLE OF CONTENTS

Ch. No.

Particulars

.

1. Introduction

1.1 General Introduction of real estate

1.2 Objectives of the Study

1.3 Industry Profile

a) Origin and Development of the Industry

b) Growth and Present Status of the Industry

c) Future of the Industry

2. Profile of the Organization

2.1 Origin of the Organization

2.2 Growth and Development of the Organization

2.3 Present status of the Organization

2.4 Organization Structure

2.5 Product and Service Profile of the Organization

2.6 Market Profile of the Organization

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3. Discussions on Training

3.1 Job Profile ( (Role and Responsibility)

3.2 Key Learning’s

3.3 Students Contribution to Organization

4. Study of Selected Research Problem

4.1 Statement of research Problem

4.2Statement of research Objectives

4.3Research Design & Methodology

5. Analysis

5.1 Analysis of Data

5.2 Summary of Findings

6. Summary and Conclusions

6.1 Summary of Learning Experience

6.2 Conclusions and Recommendations

7. Bibliography

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Rashtriya Ratan and Builder of the year award from Economic Studies and International study circle.

Indian Achievers of the year Award 2008 from All India Achievers Foundation State Presidents- The Maharashtra Builders forum

Participated in Baba Amte’s Bharat jodo Abhiyan as Navi Mumbai Incharge.

Maharashtra’s Rural and Urban Slum Settlements establishes Haware Real Estate Acad-emy

5 Lbour schools and 7 mobile dispensaries for welfare of constructions workers and their families.

Donated 5 ambulances to NGOs. Active in save Trees campaign and beautiful city drive Initiated starting 502 bus routes for vashi –sanpada residents. Round the clock work and efforts and always in the forefront in the social –education cul-

tural field for residents of Navi Mumbai

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CHAPTER:1

INTRODUCTION

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INTRODUCTION OF REAL ESTATE SECTER:

Real estate is one of the fastest growing sectors in India. Market analysis pegs returns

from realty in India at an average of 14% annually with a tremendous upsurge in

commercial real estate on account of the Indian BPO boom. Lease rentals have been

picking up steadily and there is a gaping demand for quality infrastructure. A significant

demand is also likely to be generated as the outsourcing boom moves into the

manufacturing sector. Further, the housing sector has been growing at an average of 34%

annually, while the hospitality industry witnessed a growth of 10-15% last year.

Agents are often better informed than the clients who hire them and may exploit this

informational advantage. Real-estate agents, who know much more about the housing

market than the typical homeowner, are one example. Because real estate agents receive

only a small share of the incremental profit when a house sells for a higher value, there is

an incentive for them to convince their clients to sell their houses too cheaply and too

quickly. We test these predictions by comparing home sales in which real estate agents

are hired by others to sell a home to instances in which a real estate agent sells his or her

own home. In the former case, the agent has distorted incentives; in the latter case, the

agent wants to pursue the first-best. Consistent with the theory, we find homes owned by

real estate agents sell for about 3.7 percent more than other houses and stay on the market

about 9.5 days longer, even after controlling for a wide range of housing characteristics.

Situations in which the agent’s informational advantage is larger lead to even greater

distortions. Other possible explanations, such as a lower effort on the part of agent when

serving clients, lower discount rates on the part of agents, or unobserved differences in

housing quality, appear less likely to account for the observed differences.

India has experienced near-double-digit growth in the last several years and stories

of the Indian economic juggernaut fill newspapers and bookstores. The commercial real

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estate market is no exception. The IT boom has created a huge demand for quality office

space that was nonexistent a few short years ago. Several prominent Indian developers

have emerged, and more and more international investors and developers are plunging

into the country.

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Marco-economic Overview

The Indian economy currently stands among the world's fourth largest growing

economy in terms of purchasing power parity and holds the distinction of being a key

contributor to Asia's balance of payment surplus. India's GDP is estimated to be the third

largest in the world by 2020. India is also considered the second most attractive country

in the world for Foreign Direct Investment (FDI). Forex Reserves (excluding gold and

SDRs) stood at US$157.25 billion at the end of July 2006. India now holds the fifth

largest stock of reserves among the emerging market economies and the sixth largest in

the world.

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The performance of the country has been consistent and steady over the past three

years with an average annual growth rate of 8%. The growth trend is being led by

positive movements across sectors in agriculture, manufacturing and services.

In recent years, the broad based growth in services sector has been a principle

driver of the GDP growth. Business services (including Information Technology (IT) and

IT Enabled Services), communication services, financial services, hotels and restaurants

and trade (distribution) services are among the fastest growing service sectors. India’s

share in the world market for IT software and services (including BPO) increased from

around 1.7% in 2003-04 to 2.3% in 2004-05 and an estimated 2.8% in 2005-06.

The proportion of manufacturing in the GDP has remained stable at around 25%,

however, the growth rate of manufacturing has increased over years, from 2.7% in 2001

to 9.0% in 2006 against the growth rate of 2.3 % and 9.8% in agriculture and services

respectively. Manufacturing Industries like textiles, automobiles, cement, steel,

petrochemicals, Infrastructure (civil aviation, roads, and ports), electronics, beverages

and tobacco products have been the prime drivers in India’s Industrial growth.

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REAL ESTATE SCENARIO IN INDIA

The size of the Indian real estate market is estimated at USD 12 billion and it is

currently growing at rate of about 30% annually. Real estate lending by banks has

increased by 3.78 times in the last two years, forming 18% of the total bank credit. Strong

and improved economic growth, proactive policy initiatives like relaxation of FDI in

construction and availability of finance (institutional and retail) has driven the demand

for real estate across all sectors - Commercial, Residential, Retail and Hospitality. Also,

there is an increased focus towards development of Special Economic Zones (SEZ) in

India.

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The last few years have seen Indian market mature through regulatory reforms

(rationalization of stamp duties, reform of urban land ceilings), improving products in

terms of quality and technology, changing tenant profile (MNCs, and respect for tenancy

laws), and improving management and maintenance models (enhanced product life-

cycles and sustained project / real estate yields). Although the initial real estate boom was

concentrated in places like Bangalore and the National Capital Region of Navi Mumbai

(including Gurgaon), more recently the geographical spread has widened. There has been

a significant shift in real estate market from metros to its suburbs and to tier II and tier III

cities. Lease rentals and occupancies have been picking up steadily and there is an

increasing demand for quality infrastructure across various segments of the real estate

sector.

Commercial Real Estate

The demand for new office space in India has grown from an estimated 3.9 million

sq. ft in 1998 to over 16 million sq. ft in 2004-05. 70% of the demand for office space in

India is driven by over 7,000 Indian IT and ITES firms and 15% by financial service

providers and the pharmaceutical sector. Cumulative demand for office space in India

over the next two years (2006-08) is estimated to be in excess of 45 million sq. ft. The

Indian IT-ITES Industry, estimated at USD 36.3 billion in 2006 has grown at a CAGR of

36% over the last decade and by 2008, is expected to account for over 7% of India’s GDP

and 30% of foreign exchange inflows. In 2005 alone, IT/ITES sector absorbed a total of

approx 30 million sq. ft and is estimated to generate a demand of 150 million sq. ft. of

space across major cities by 2010. South Indian cities like Bangalore, Chennai and

Hyderabad along with NCR (National Capital Region) continue to attract the major share

of IT/ITES and business investment. However, secondary cities, like Pune, Chandigarh,

Indore, Kochi and Kolkata are now emerging as the new preferred destinations for these

companies due to their cost and infrastructure advantages.

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Residential Real Estate

The residential property market in India constitutes almost 75% of the real estate

market in terms of value. Low per capita housing stock, rising disposable income coupled

with easy availability of finance from the housing finance companies and banks are

driving demand in this sector. Also, Average age of housing loan borrowers has

decreased to 30- 35 years from 40- 45 years a few years ago, indicating a younger buying

threshold. The housing sector is currently growing at 30-35% per annum. A proportion of

demand is also being driven from investors who view housing as an attractive investment

option as compared to mutual funds and stocks. The demand for housing is

geographically widespread with townships being built in both the metros and the tier II

and III cities. In India, there is a housing shortage of 19.4 million units out of which 6.7

million are in urban areas alone. This translates into very high opportunities for investors

in the residential sector.

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Retail Real Estate

The Retail industry in India continues to be dominated by individual small format

stores with floor space of less than 500 sq.ft. Total number of retail outlets is estimated to

be around 12 -15 million, indicating a retail density of 12-14 outlets per 1,000 people,

which is one of the highest in the world. The retail sector in India is currently estimated at

USD 230 billion. The current size of the organized retail activity is USD 7 billion, which

is a mere 3% of the total retail market. The retail sector is witnessing a growth of 5-7%

per annum; however the organized retail is poised to grow at a rate of 25% - 30% per

annum and is expected to be worth over USD 30 billion by the year 2010, thereby

increasing the share of organized retail activity from the current level of 3% to 15% in the

coming decade.

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Hospitality Real Estate

Hospitality industry in India is growing at an annual rate of over 8%. The number

of foreign tourists’ arrivals (a major driver of hospitality industry) in the country

increased to approx. 4 million in 2005. Over 55% of the total demand for hotels in the

country is generated by foreign leisure tourists and business travellers (domestic and

foreign). A large proportion of lodging demand in commercial cities such as Bangalore,

Mumbai, Navi Mumbai etc. comes from business travellers.

This category also accounts for the major proportion of demand for five star or five

star deluxe hotels. However, against the total current supply of 96,000 rooms, five star

category accounts for just a quarter of the supply. With the expected growth in demand

for rooms at 18%, another 65,000 – 80,000 hotel rooms will be needed till 2010. This

demand – supply gap is expected to result in high level of activity in construction of

hotels. The established brands in this sector such as Asian Hotels, Indian Hotels, ITC, Le

Meridian etc are in expansion mode with many new players such as Accor Group,

Marriot, Choice, IHG Group keen to establish their footprint.

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Special Economic Zones

The upcoming realty trend in India after multiplexes and mega housing projects are

the Special Economic Zones (SEZ). Currently, 28 SEZs are operational in the country,

including those converted from Export Processing Zones (EPZ) to SEZ. Approx. 189

proposals have already been granted approval since the SEZ Act, 2005 came into force.

These include SEZs in various segments such as multi-product, Information Technology,

Bio-technology, Gems and Jewellery, Textiles and technology intensive industries. Both

developers and corporate have shown tremendous interest in developing SEZs in the

country. Reliance Industries, for instance, is planning a 25,000 acre SEZ in Gurgaon and

is also the main partner in twin SEZs coming up at Navi Mumbai and Maha Mumbai,

with a combined size of 35,000 aaps.

The Adani group is also setting up an SEZ at Mundra, covering 30,000-35,000

aaps, and it proposes to invest Rs 7,300 crore on infrastructure. Other corporate who are

in process of setting up SEZs include TCG Refineries of the Chatterjee Group (SEZ

refinery at Haldia in West Bengal), Suzlon Infrastructure (hi-tech engineering products

and services near Coimbatore in Tamil Nadu, Udupi in Karnataka and Vadodara in

Gujarat), Hindalco (aluminium SEZ at Sambalpur in Orissa), Genpact (IT SEZ at

Bhubaneshwar in Orissa, Jaipur in Rajasthan and Bhopal in Madhya Pradesh), Vedanta

Alumina (aluminium SEZ at Orissa). Seeking the permission for SEZs are also a number

of Real Estate consultants, including DLF, Ansals, Omaxe, Parsvnath, Shipra Estate and

Sunny Vista Realtors.

FDI in Real Estate

With the opening of the sector for 100% FDI under automatic route, the real estate sector

is estimated to capture about 18-20% of the total FDI coming to India in 2005-06. The

FDI in Real Estate is expected to have a favourable multiplier effect on the economy. As

an indicator, for every rupee spent on construction, an estimated 75-80% gets added to

the GDP. The spill-over effect of this initiative can also be witnessed in important sectors

like the cement and construction industries, where the key players are expanding capacity

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to meet the soaring demand. With the relaxation of the FDI limit, the country saw an

influx of global Real Estate consultants like Dubai-based Emaar Properties (the largest

listed Real Estate consultant in the world) – which enetered

India in a joint venture with Navi Mumbai based MGF Developments.

Growth and leverage to higher India growth

The real estate sector is developing rapidly in India. The demand side has robust and

sustainable macro drivers across all segments.

Residential :

Accounting for more than 70% of the sector in terms of space, residential segment

growth is driven by urbanization and the migration of households up the income curve.

According to the National Council of Applied Economic Research estimates, the number

of urban households earning more than INR 500,000 (about US$12,000) should more

than double to 7.6m in 2006-10.

Commercial :

Rapid growth in IT/ITES services (manpower in the sector has doubled in the past three

yearsto 1.6m) is the main driver of Grade A commercial office space demand. Jones Lang

LaSalle,a property consultancy, estimates that the absorption of office space in the top

seven cities inIndia was 31.1m square feet in 2006.

Retail :

According to CRIS INFAC, the penetration of organized retail into the overall market

will increase from 3.5% in 2005 to 8% in 2010, thereby driving the demand for mall

space.

Hospitality :

According to CRISIL, the number of 5-star rooms is expected to grow by 60% in the next

four years with foreign tourist arrivals growing at 10% CAGR.

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Structure Of Real Estate

The real estate industry has historically been fragmented and opaque, but this is

changing:

Penetration of mortgage finance :

Mortgage disbursals grew by 38% in FY2001-06 and have become an integral part

of the buying process. This has helped reduce the unaccounted “cash component” of

transactions.

Entry of foreign capital :

Regulations governing foreign capital in the sector have been relaxed, motivating

developers to become transparent and improve corporate governance.

Change in legislation :

In many states, strict laws like the Urban Land Ceiling Act (which defines ceiling

of land holdings in urban areas) have been repealed or modified.

Consumer preferences :

Consumers are now willing to pay premium prices for better amenities and a good

brand. In response, most of the bigger developers are scaling up geographically, which

necessitates rigorous systems and processes.

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MUMBAI REAL ESTATE

Mumbai is no way behind when it comes to a talk on property. The Mumbai real

estate is in its growth orbit and attracts investors from major multinationals in the recent

times. Such is the potential of the city's infrastructure that it is known to be spearheading

most cities as far as property market is concerned. With Mumbai serving as the

entertainment city, even the organized retail sector here is fast flourishing.

Purchasing real estate in Mumbai requires a significant investment, and each piece

of land in the city has unique features, so the property market in Mumbai has evolved

into several different fields.

Having the potential to leverage high returns, a large number of real estate projects

are financed everyday in Mumbai. NRIs can shop for property in the city with the

expectation of attaining an investment good, or with the purpose of utilizing it as a

consumption good, or both.

Mumbai is also the fashion capital of India, so it is one of the foremost cities to be

hit by the retail buzz. With the opening up of the retail market, there has been a growing

demand for retail properties in Mumbai. This has created a viable market for mall space

and other retail stores and showrooms. These retail stores and malls are either owned by a

business group or leased for hefty prices as the demand is high.

The property prices as well as the increase in rental values in Mumbai owe much

of its credit to the large scale investments in the commercial sector. Mumbai has always

been the hot favorite for most of the corporate sector to have their headquarters in the

city. And with increasing investments by MNCs in the IT, ITES and the BPO sector,

there has been a growing demand for office space; which have consequently created an

imbalance in demand and supply for residential properties. The rental values in Mumbai

have also in high corresponding to that in other metros.

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Navi Mumbai- Emerging Commercial Hub

Even India’s leading conglomerates have taken up commercial space here. The

state administration has already shifted wholesale commodity markets to Navi Mumbai.

So, you have endorsements from different segments that Navi Mumbai’s commercial real

estate is much sought after,” he says. Suresh Haware, MD, Haware Builders concurs.

“Even at the ‘nano’ end of the commercial real estate spectrum, demand is high,”

he says. It is the small offices and shops’ segment that have witnessed the highest de-

mand at Haware Builders’ commercial projects in Navi Mumbai, he reveals.

Today, industrial units in Navi Mumbai are relocating to locations in Raigadh dis-

trict and commercial is the latest buzzword in Navi Mumbai’s real estate scenario, says

Vijay Gajra of the Gajra Group. “Commercial options in Navi Mumbai span a huge price

band. Growth of the residential segment in Navi Mumbai, prior to that of the commercial

segment, actually works out in favour of the end-user today, as manpower resources are

easily available,” he points out. “Commercial real estate in Navi Mumbai comes at com-

petitive prices vis-à-vis other options in the Mumbai metropolitan region (MMR), with

the added advantage of being located in a well-planned city,” adds Gajra.

IT/ ITeS SEZs and businesses that have anything to do with rail/road transport and

logistics or shipping, are proving to be the next big segment in Navi Mumbai’s commer-

cial spectrum, shares Mayur Shah, honorary secretary, MCHI. Ramneek Bakshi, principal

of global property consultants, LJ Hooker, points out that MNCs view India within the

parameters of the ‘Brazil, Russia, India, China’ (BRIC) equation. “When they look at In-

dia as a business entity, Mumbai takes prime position. When they start looking out for

space, Navi Mumbai, which forms the third level of real estate pricing, is attractive for

MNCs looking to set up shop in the Mumbai region,” he explains. At the Norwegian con-

sulate in Mumbai, George Mathew, honorary consul general, concurs, “If you look at real

estate pricing trends in the MMR, Navi Mumbai fits the bill on many counts. However,

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the clincher is the price efficiency and developed infrastructure that Navi Mumbai pro-

vides,” he concludes.

Appreciations

The hike in demand as well as supply and appreciation in capital values are

attracting good attention from overseas investors. The Mumbai real estate has become a

reflective of the high growth in Indian property market. There has been an increase in real

estate value across micro markets in Mumbai as well.

Mumbai is looked upon as one of the most organized and transparent property

market in India. With cash components and transactions shooting up in the last two years,

the city has gained much popularity among the investors, both domestic and international.

The investment market has been thriving with excellent returns going high over the past

few years. The real estate boom and an upsurge in development activities in major parts

of Mumbai have led to a rise in investment prospects in commercial and residential

sector.

Known locations like Bandra-Kurla Complex (BKC) and Lower Parle have seen

appreciations in commercial spaces falling under the category of Grade A. The

occupancy levels in other preferable locations like Andheri West and Nariman Point also

increased in the current year and are believed to have marked the rise by 90-95%.

Another mark appreciation is in regard to commercial properties in Mumbai, and is

prevailing in the city's micro markets barring a few exceptions.

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NRI Real Estate trends

Major property developers in Mumbai, underpinned by the vastness, scope, success

and scale of progress in the city are now transforming developing properties into strong

retail bases. Then of course, the government permitting foreign direct investment (FDI)

up to 51% in retail trade has also brought about major moves in retail industry.

The demand for property whether commercial or residential, is very high in

Mumbai. There has been steady demand for consecutive years and has resulted in an

increase in the yield rate. New real estate projects in Mumbai are always in queue to be

launched by private as well as by government. This encouraged overseas investors

especially Non resident Indians (NRIs) to make significant investments in Mumbai

properties.

With an excellent accessibility across the globe, the city of dreams, Mumbai has

emerged as an ultimate destination for most people. As per property surveys, one can sell

any property and get a price which is fairly good. Within the real estate industry, it is

believed that such periods come in cycles and bring an apt time to cash upon.

What makes real estate in Mumbai so exciting are an ongoing demand and the

proposed projects that are to be executed in approaching years. Builders always have

special offers and attractive schemes in store for end consumers. Capital Values of

quality apartments, in well-maintained old buildings and upcoming projects, in South and

South Central Mumbai, have gone through the roof.

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1.2) OBJECTIVES OF THE STUDY

The paper aims to examine the present scenario of real estate in India. In this broader

framework, an attempt has been made to achieve the following specific objectives:-

1. To study the fundamental factors affecting the real estate value.

2. To examine the present factors of real estate boom.

3. To present the future constraints of real estate investment in India.

4. To study customers perception while they purchase shops and offices.

5. To study how to close a good deal.

6. To make good relationship with client

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1.3 INDUSTRY PROFILE

A) ORIGIN & DEVELOPMENT OF THE INDUSTRY

Over the past decade, India has emerged as a leader in the global economy. It is a magnet

for foreign direct investment (FDI), and has displaced Mexico as the third most preferred

Country for foreign investment. FDI in India is expected to increase to US$15 billion this

year, triple the 2004 figure. Many foreign companies are starting or expanding operations

in India. One-fifth of all Fortune 500 companies including Eli Lilly, General Electric, and

Hewlett Packard have set up research and development facilities in India. The surge in

foreign investment, more joint ventures between Indian and foreign companies, and the

growth of India’s domestic industries have created more employment opportunities for

India’s young, highly educated, professional workforce and fueled the growth of the

country’s middle class. Advantage India: Real estate is one of the fastest growing sectors

in India. Market analysis pegs returns from realty in India at an average of 14% annually

with a tremendous upsurge in commercial real estate on account of the Indian BPO

boom. Lease rentals have been picking up steadily and there is a gaping demand for

quality infrastructure. A significant demand is also likely to be generated as the

outsourcing boom moves into the manufacturing sector. Further, the housing sector has

been growing at an average of 34% annually, while the hospitality industry witnessed a

growth of 10-15% last year. Apart from the huge demand, India also scores on the

construction front. A Mckinsey report reveals that the average profit from construction in

India is 18%, which is double the profitability for a construction project undertaken in the

US. The importance of the Real Estate sector, as an engine of the nation’s growth, can be

gauged from the fact that it is the second largest employer next only to agriculture and its

size is close to US $ 12 billion and grows at about 30% per annum. Five per cent of the

country’s GDP is contributed by the housing sector. In the next three or four or five years

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this contribution to the GDP is expectedto rise to 6%. The Real Estate industry has

significant linkages with several other sectors of the economy and over 250 associated

industries. One Rupee invested in this sector results in 78 paise being added to the GDP

of the State. A unit increase in expenditure in this sector has a multiplier effect and the

capacity to generate income as high as five times. If the economy grows at the rate of

10% the housing sector has the capacity to grow at 14% and generate 3.2 million new

jobs over a decade. The relaxed FDI rules implemented by India last year has invited

more foreign investors and real estate sector in India is seemingly the most lucrative

round at present. Private equity players are considering big investments, banks are giving

loans to builders, and financial institutions are floating real estate funds. Indian property

market is immensely promising and most sought after for a wide variety of reasons India

has experienced near-double-digit growth in the last several years and stories of the

Indian economic juggernaut fill newspapers and bookstores. The commercial real estate

market is no exception. The IT boom has created a huge demand for quality office space

that was nonexistent a few short years ago. Several prominent Indian developers have

emerged, and more and more international investors and developers are plunging into the

country. As with any local or regional market, there are many idiosyncrasies that color

the business environment, and India is no exception. Below is an introduction into the

current conditions ithin the Indian real estate market and what the future may hold as

India quickly becomes a global superpower.

B) GROWTH & PRESENT STATUS OF THE INDUSTRY

Despite early signs of the market reaching a peak, most of India’s cities continue to be

overwhelmingly a landlord’s market. All cities are still seeing multiple leases and active

requirements from 100,000 to over 1 million square feet, and tenants are sometimes

forced to wait months for the completion of core shell construction to start the hiring

process for their new operations. Tenants are faced with the resulting conditions: no

tenant improvement allowance, free rent periods that are only given during fit-out

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construction, and maintenance charges up to twenty percent above cost.

Things to take care of:

A relatively young democracy – celebrating its 60th year of independence this year –

India is still maturing economically and politically, and a thorough due diligence is

required when considering India from an occupier or investor perspective. Local

developers are still responsible for the majority of new supply in most markets and their

reliability on timelines and construction quality varies. State governments play a key role

in the viability of any particular market and a shift in power can cause major changes in

the growth patterns of a city. Furthermore, the economic vehicles created for IT

companies are a source of much debate. STPI, or Technology Parks of India, is a

longstanding government agency, which provides tax benefits until 2011, and the

extension of these benefits is unclear. The result of this is that the majority of new

requirements are looking at Special Economic Zones, or SEZs, which allow for up to 15

years of tax holidays for both occupiers and developers. However, frequent changes in

SEZ policy require companies to create a customized strategic plan with their tax

consultant before commitment and occupancy. Likewise, there is no clearly defined exit

strategy for SEZs and developers are currently required to adopt a long- term hold

strategy on these assets.

C) FUTURE OF THE INDUSTRY

Despite volatility in the US and elsewhere due to sub prime lending, Indian equity

markets have remained strong, and this means companies from the subcontinent are

quickly reaching market capitalizations and credit levels that allow for major acquisitions

abroad. According to Grant Thornton, in the first eight months of 2007, there have been

164 acquisitions by Indian companies worth nearly $31 billion, compared to 73 in-bound

deals worth $15 billion. Global brands such as Tetley Tea are already Indian-owned and

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Tata Steel made headlines early this year with its $12 billion acquisition of Corus Steel to

become one of the world’s largest steelmakers. Indian realty major DLF made its Initial

Public Offering in June and reached a market capitalization of over $20 billion, rivalling

the sale price of Equity Office to Blackstone last year. Interest in institutional assets

abroad is only inevitable and don’t be surprised to see Indian real estate majors such as

DLF and Unitech or conglomerates such as Reliance and Tata’s owning premium real

estate assets in major US markets in the coming years.

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CHAPTER:2

PROFILE OF AN OR-GANIZATION

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ALLIANCE PROPERTY SERVICES PVT. LTD .

Regd Off: 20/3, Vandana Bldg,

R.A. Kidwai Road, Wadala,

Mumbai-400031.

Administrative Office:

Vashi Plaza, Ground Floor,

Sector 17, Vashi,

Navi Mumbai- 400705.

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Background

They started as a journey by a single individual with a desire to excel has now

become an organization which is serving the needs of the real estate industry in the

country today.

Alliance today has the best talent on its board of directors who are

professionals in real estate, finance, accounting and taxation striving to render the best of

services to its clients. Alliance today has given shape to and has structured some of the

most complex and landmark transactions for reputed clients.

They add value to your properties through their experience and expertise, with

their wide network of clients and contacts all over India and global arena. They assist

everyone in identifying opportunities and the right partners to compliment their

capabilities.  

Business Segments

BUSINESS SEGMENTS

Managementconsultancy

Financing

Real Estate

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Our services help clients to achieve value addition by turning assets into dynamic as-

sets and realize the best potential of each asset and try to optimize by putting each as-

set to its best possible use.

Projects Handled-

Little World Mall:

They had sole mandate to lease the mall which started in October 2007 in Kharghar.

Complete project was completed by them with good anchors and brands as listed below:

Aditya Birla more, Archies, Levis, Levis Signature, Max Lifestyle, Adlabs, The

Raymond Shop, Reid & Taylor, Welspun,Thomas Scott , Connexions, Koutons, Planet

M, The Mobile Store, Homes & Apparels, Lilliput, Carmicheal House, Kittens, Thomas

Scott, Gini & Jony, La Diamond, Nice Looks, Dosa Plaza, China Land, Chopking,

Indian Tadka, Moti Mahal, Café Energise, Café Bollywood, Kwality Swirls Juice Zone,

Namrata Cup Corn.Curries and Parathas.etc

City Center Mall:

They have leased Operational Mall on Palm Beach Road, Vashi. The list of brands

which we introduced to this mall are: Levis, Roop Sangam, Kittens, Gini& Jony, La

Diamond, And Design, Adora, M&B Shoes,Black berry, Weekender, Infancy,Timex,

GKB Opticals, Black Berry, ITC John Player, Unistyle, Addidas, Nike, Spykar, Lee

Franchising

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Cooper, Ruff Kids, L effect, Live In, Lovable, Dominoes, Nice Looks, Top Corn, Café

Coffee Day, Ameoba Game Zone, Stone age Restaurant.

Other Individual Projects Handled :

Brokerage deals:

¤ Crystal Mall- Bandra & Mumbai Times Café

¤ Reliance & Maithili Signet at Vashi.

¤ K star Mall –Chembur Aditya Birla More

¤ Fantasia Mall-Inox (Multiplex)

Bank Finance:

¤ Arrangement for Akshar Developers from Axis Bank

¤ Arrangement for Wellwisher Constructions from Axis Bank

¤ FDI investment for Little World Mall.

¤ Etc,.

Quality Objectives

Continuous improvement in the quality of services.

Prompt response to customer complaints

Strong property data bank.

Aggressive follow up & due diligence.

Panel of associates for legal, finance, market research, investments and other allied

subjects.

Handling properties in all metros and all other cities across the country.

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An Overview

Alliance Property Services is professionally managed company having presence in

Mumbai, India in the following activities:

1. Real estate –Sale and lease.

2. Lease of retail outlets in malls and High street.

3. Joint ventures with developers.

4. Leasing and sale of entire properties with High Value clients. /Builders/Investors/

Private equity /Venture capital /Foreign Direct Investors.

5. Franchising in retail and other spheres.

6. Arranging attractive investment proposals/ideas for investors.

7. Holding real estate/franchising /retailing /financing expositions and exhibitions in

all towns and cities.

8. Finding investors for local developers and Builders.

9. Underwriting entire projects for marketing ,investments and execution.

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Corporate Real Estate Services

 Transactions for all kinds of properties across the country including:

Residential

Office

Commercial

Retail & Shopping Malls

IT Park

BPO/ Call centre

Hotel & Resorts

Leisure & Entertainments

Hospitals

Multiplexes

Industrial

Institutional.

2.1 ORIGIN OF THE ORGANIZATION

ALLIANCE PROPERTY SERVICES – A professionally managed company providing

consultancy services in real estate to cater the growing needs of individuals as well as

large corporate houses.

The company was established in 1999 and commenced its commercial operations right

from the beginning with small properties. With the growing needs, the company expanded

its business and started dealing in residential as well as commercial sector with innovative

marketing policies. Presently the company is an authorized channel partner of all the

leading Real Estate consultants in India.

The company holds its administrative office in Vashi,Navi Mumbai. The company has a

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huge database of commercial, residential properties with a pan India presence. We at

Corporate Real Estate, endeavour to exceed the expectations, to give delight and

comprehensive service & satisfaction to the client. We pride our self on understanding the

clients requirements in minute details and provide him high quality advice and

consultation services which meet the various constraints of time, budget, & quality for all

his property requirements, especially in Mumbai, navi mumbai region. We assist clients in

every stage of the estate process, representing them in the buying, selling, financing,

leasing, managing and valuing of assets, and providing strategic planning and research,

portfolio analysis, site selection and space location, among many other advisory services.

We with our long association with the various builders have the ability to negotiate and get

you a property at discounted rates to suit your budget.

Client satisfaction being our target: we have valued our principles over the time- and thus taken

pride in being a contemporary name in the industry. Composed by a co-existing insight from the

clients and our masterminds, our team has delivered at times of dire necessities for people of

different strata. Homes, Offices, Commercial facilities, Hotels & Resorts, Shopping Malls, IT

Parks- each and every undertaken task has depicted our dedication and sincerity towards our

innovative business module, bold commitments and utmost sincerity. We understand that Real

Estate does not just signify a property or a capital investment; for some it is the initiation of a

process of realizing the dreams. We, at corporate real estate firmly believe in our client's ethics,

principles, and values and thus have cherished immense trust from them.

Vision

To become one of the most progressive Real Estate Company, offering professional services of the highest integrity

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Mission

APS is established to provide the highest quality Real Estate Services to its market area. It is our pledge to provide expertise, innovation through technology, and dedication to our clients while maintaining the highest quality standards and ethics

Commitment

APS is committed to the satisfaction of our clients, and to the profession of Real Estate itself.

OUR EXPERTISE

With our long experience and extensive industry knowledge, we have gained expertise in each

and every domain of real estate sector. We specialize in developing projects for residential,

commercial, IT, Entertainment, Hospitality, Retail and SEZ’s as per the interests and special

requirements of our clients. We specialize in delivering best results as a result of the synergy of

the synergy of our resources such as experience, knowledge, labor, finance, plant and

equipment.

At APS, we believe that humanity is indivisible. In this age of liberalization, one has to think

globally and act locally. We are committed to help the process of building a healthy and sane

human society. We aim to achieve excellence in all our offerings and areas of its activity and to

to scale the heights of perfection.

WHY US?

APS was formed with sole purpose of providing 'Professional and Honest' services to itsvalued

customers. We believe 'service is our business' and keeping this in mind we have set high

standards for the same. We have always served our clients with sincere endeavor to provide

'One stop property shop', which can cater to all their real estate requirements. At the

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same time we also realize that several factors go into providing real estate solutions that protect

our customer's investment, most importantly clear title, Quality of Product & Cost-

effectiveness. Our extensive database ensures a wide spectrum of choice in properties for our

clients.

We are very different from other reality companies. We are a corporate, and we have a

proper and transparent process controlling and monitoring every little work we do. All your

property related services, documentation, registry, deed writing and other official & legal

processes are handled in the most professional manner.

2.2 GROWTH & DEVELOPMENT OF THE ORGANIZATION

APS, based in Vashi,Navi Mumbai, provides its services in all major parts of the country.

The company was established in response to the growing need for quality housing and

commercial space in the metropolitan cities of country. Ever since its inception, APS has

grown as highly reliable real estate company of the country, serving the needs of a wide and

discerning clientele.

APS has emerged as a large Real Estate consultant in India. We are also one of the large and

renowned Real Estate consultants in Navi Mumbai. We also provide expert and specialized

services like property consultation and management services, Land Identification, Realty

Surveys, facilitating conceptualization to completion of any kind of real estate projects. We also

handle rental property management services and specialize in leasing to Corporate, Expatriate

and Retail brands. Besides this we do sale, purchase and renting for our customers. We provide

end-to-end commercial and residential real estate services to our clients. Our company places

great emphasis on maintaining long term and transparent relationships with our clients.

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We understand the Indian and Global Real Estate market and we can foresee the market

trends. We have opened the doors of international real estate for our customers in India and

vice versa. Overseas Indians are allowed to make investments in Indian property without any

limit on the quantity or the number of investments. We understand global cross-cultural

business issues and also offer international networking opportunities. For Surya it's a long

way to go. What we have done in other industry we want to achieve same position in real

estate line.

2.3 PRESENT STATUS OF THE ORGANIZATION

APS, based in Vashi,Navi Mumbai, provides its services in all major parts of the country.

The company was established in response to the growing need for quality housing and

commercial space in the metropolitan cities of country. Ever since its inception, APS has

grown as highly reliable real estate company of the country, serving the needs of a wide and

discerning clientele.

APS has emerged as a large Real Estate consultant in India. We are also one of the large

and renowned Real Estate consultants in Navi Mumbai. We also provide expert and specialized

services like property consultation and management services, Land Identification, Realty

Surveys, facilitating conceptualization to completion of any kind of real estate projects.

We also handle rental property management services and specialize in leasing to Corporate,

Expatriate and Retail brands. Besides this we do sale, purchase and renting for our

customers. We provide end-to-end commercial and residential real estate services to our

clients. Our company places great emphasis on maintaining long term and transparent

relationships with our clients.

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We understand the Indian and Global Real Estate market and we can foresee the market

trends. We have opened the doors of international real estate for our customers in India and

vice versa. Overseas Indians are allowed to make investments in Indian property without any

limit on the quantity or the number of investments. We understand global cross-cultural

business issues and also offer international networking opportunities. For Surya it's a long

way to go. What we have done in other industry we want to achieve same position in real

estate line.

2.4 ORGANIZATIONAL STRUCTURE

APS has emerged as a large Real Estate consultant in India. We are also one of the large

and renowned Real Estate consultants in Navi Mumbai. We also provide expert and specialized

services like property consultation and management services, Land Identification, Realty

Surveys, facilitating conceptualization to completion of any kind of real estate projects. We

also handle rental property management services and specialize in leasing to Corporate,

Expatriate and Retail brands. Besides this we do sale, purchase and renting for our

customers. We provide end-to-end commercial and residential real estate services to our

clients. Our company places great emphasis on maintaining long term and transparent

relationships with our clients.

We understand the Indian and Global Real Estate market and we can foresee the market

trends. We have opened the doors of international real estate for our customers in India and

vice versa. Overseas Indians are allowed to make investments in Indian property without any

limit on the quantity or the number of investments. We understand global cross-cultural

business issues and also offer international networking opportunities.

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2.5 a) PRODUCTS OF THE INDUSTRY

1. Residential apartments.

2. Commercial Projects.

2.5 b) SERVICE PROFILE OF THE ORGANIZATION

We give expert and specialized services like property consultation and management

services, Land Identification, Realty Surveys, facilitating conceptualization to completion of

any kind of real estate projects. We also handle rental property management services and

specialize in leasing to Corporate, Expatriate and Retail brands. Besides this we do sale,

purchase and renting for our customers in India and Abroad. We provide end-to-end

commercial and residential real estate services to our clients. Our company places great

emphasis on maintaining long term and transparenrelationships with our clients.

We specialize in developing projects for residential, commercial, IT, Entertainment,

Hospitality, Retail and SEZ’s as per the interests and special requirements of our

clients. We have expertise in delivering best results as a result of the synergy of the

synergy of our resources. We have pioneered in the art of creating space for you and

your family to grow in style and luxury.

Services like Purchase of Land, Construction, Architecture, Landscaping, Renting and

Selling are undertaken under a single roof. The best part is that you don’t have to take the hassle

of dealing with any of the authorities while you’re with us

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2.5 c) COMPETITORS OF THE ORGANIZATION

MUMBAI REAL ESTATE

Mumbai is no way behind when it comes to a talk on property. The Mumbai real

estate is in its growth orbit and attracts investors from major multinationals in the recent

times. Such is the potential of the city's infrastructure that it is known to be spearheading

most cities as far as property market is concerned. With Mumbai serving as the

entertainment city, even the organized retail sector here is fast flourishing.

Purchasing real estate in Mumbai requires a significant investment, and each piece

of land in the city has unique features, so the property market in Mumbai has evolved

into several different fields.

Having the potential to leverage high returns, a large number of real estate projects

are financed everyday in Mumbai. NRIs can shop for property in the city with the

expectation of attaining an investment good, or with the purpose of utilizing it as a

consumption good, or both.

Mumbai is also the fashion capital of India, so it is one of the foremost cities to be

hit by the retail buzz. With the opening up of the retail market, there has been a growing

demand for retail properties in Mumbai. This has created a viable market for mall space

and other retail stores and showrooms. These retail stores and malls are either owned by a

business group or leased for hefty prices as the demand is high.

The property prices as well as the increase in rental values in Mumbai owe much

of its credit to the large scale investments in the commercial sector. Mumbai has always

been the hot favorite for most of the corporate sector to have their headquarters in the

city. And with increasing investments by MNCs in the IT, ITES and the BPO sector,

there has been a growing demand for office space; which have consequently created an

imbalance in demand and supply for residential properties.

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Navi Mumbai- Emerging Commercial Hub

Even India’s leading conglomerates have taken up commercial space here. The

state administration has already shifted wholesale commodity markets to Navi Mumbai.

So, you have endorsements from different segments that Navi Mumbai’s commercial real

estate is much sought after,” he says. Suresh Haware, MD, Haware Builders concurs.

“Even at the ‘nano’ end of the commercial real estate spectrum, demand is high,”

he says. It is the small offices and shops’ segment that have witnessed the highest de-

mand at Haware Builders’ commercial projects in Navi Mumbai, he reveals.

Today, industrial units in Navi Mumbai are relocating to locations in Raigadh dis-

trict and commercial is the latest buzzword in Navi Mumbai’s real estate scenario, says

Vijay Gajra of the Gajra Group. “Commercial options in Navi Mumbai span a huge price

band. Growth of the residential segment in Navi Mumbai, prior to that of the commercial

segment, actually works out in favour of the end-user today, as manpower resources are

easily available,” he points out. “Commercial real estate in Navi Mumbai comes at com-

petitive prices vis-à-vis other options in the Mumbai metropolitan region (MMR), with

the added advantage of being located in a well-planned city,” adds Gajra.

IT/ ITeS SEZs and businesses that have anything to do with rail/road transport and

logistics or shipping, are proving to be the next big segment in Navi Mumbai’s

commercial spectrum, shares Mayur Shah, honorary secretary, MCHI. Ramneek Bakshi,

principal of global property consultants, LJ Hooker, points out that MNCs view India

within the parameters of the ‘Brazil, Russia, India, China’ (BRIC) equation. “When they

look at India as a business entity, Mumbai takes prime position. When they start looking

out for space, Navi Mumbai, which forms the third level of real estate pricing, is

attractive for MNCs looking to set up shop in the Mumbai region,” he explains. At the

Norwegian consulate in Mumbai, George Mathew, honorary consul general, concurs, “If

you look at real estate pricing trends in the MMR, Navi Mumbai fits the bill on many

counts. However, the clincher is the price efficiency and developed infrastructure that N

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2.6 MARKET PROFILE OF THE ORGANIZATION

The real estate segment in India is witnessing huge growth as most of the metropolitan cities

are escalating the property map with state-of-the-art projects. According to reports, an

estimated size of the Indian real estate sector is $ 12 billion of country's $ 600 billion

economy. The sector is witnessing a stable and further sustainable boom and the

market is expected to reach $ 45 billion in five years. According to experts, the

demand and supply for real estate properties is slated to grow much higher in coming

few years, which is leading to the stability of prices.

The boom in the real estate market comprises of basically three sectors, viz. - residential,

commercial and retail. This boom in real estate market can be apparently observed in Navi

Mumbai, Gurgaon, Greater Noida and other major cities of the country. As the demand is

escalating, more and more players are entering the industry with a wide range of project to

offer. The developers are able to satisfy the most demanding buyers for residential, retail

and commercial properties with world class facilities. The number of available choices is

wid and the offered properties are highly profitable and special in their own. The market

trends in Indian Real estate sector are very healthy and are indicating towards a positive

trend for the long-term investor. The economy is growing at rapid rate i.e. 8%-9%

annually, which is creating a conductive business environment for organizations across

different industrial sectors. Other factors, which are likely to contribute to long term

demand.

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CHAPTER :3

DISCUSSIONS ON

TRAINING.

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3.1 JOB PROFILE

As we deal real estate, which is one of the most important sectors of industry, we

understand our responsibilities towards the society and our stakeholders. We have

formulated our policies and take decisions, which are based not only on financial factors

such as profits or dividends, but also consider the interests of customers, employees,

shareholders, communities, and ecological considerations in all aspects of our operations.

We give prime emphasis to:

Ethical business practices

Transparency

Mutual benefit and

Respect in relationship with clients

3.2 KEY LEARNINGS

Experience of How to deal with Clients?

Experience of preparing the documents.

Easily identify the Market Scenario.

How to deal with Brokers?

Over all is that knowledge about the Real Estate Sector.

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MY PROFILE IN ALLIANCE PROPERTY SERVICES PVT. LTD.

Projects Handled:

CENTURION COMMERCIAL &

SHOPPING COMPLEX

Plot No 88-91, Sector: 19A,

Vashi (East), Navi Mumbai.

HAWARE’S FANTASIA BUSINESS

PARK

Plot no.47, Sector-30A,

Vashi, Navi Mumbai.

.

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HAWARE’S VASHI INFOTECH PARK

Plot No. 16, Sector – 30A,

Vashi, Navi Mumbai

HAWARE INFOTECH

PARK

Plot No. 39/3, Sector –

30A, Opposite Vashi Rail-

way Station, Vashi, Navi

Mumbai

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LOAN DEPARTMENT

As fantasia Business Park is a vast project, it consists of more than 500 shops and

offices. The customers come for the investment as well as to start up their own business.

The customers are basically heterogeneous in nature. Out of which few of the customers

were willing to give the total cost of the shop/office as their 100% own contribution

within the specified time period. But when analyzed that the customers were not

financially stable after going through their documents, they were given the option of

commercial bank loan according to their requirements.

Marketing executives were appointed to approach different banks and were asked

to give the detailed view of our shopping complex. Every week a meeting would be held

between the trio to discuss the various factors and schemes regarding the particular bank.

As to know what are the different rates of interest been levied, and many other factors.

Most of the banks do not support the commercial loan as it involves very high risks and

suspicions. Whereas there are banks with whom we had tie-ups. They are:-

Mahanagar Co-Operative Bank

HDFC Bank

ICICI Bank

Saraswat Co-Operative Bank

Deutsche Bank

Abhyudaya Bank, etc….

We as the intermediary would collect the required document from the customer. The

bank then verified the documents and declared whether the customer is liable to repay the

loan taken by them. Within this period we had to follow up with the bank and customer

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for paying 40% of their agreement value. Customer should pay their 40% and complete

with registration before bank proceed. Banks are able to provide up to 60%-70% loan

according to customer profile.

At the time of registrations we are required to provide instruction to customers

regarding registration. Following instruction were to be provided by us :

1. Customer have to bring Rs.3500 with them at the time of registration for printing and

stamp duty chargers.

2. Customers current 2passport size photocopy with pan card Xerox.

3. It Requires 2 witnesses also from the client’s side.

4. 5% stamp duty 1%registration paid by customer on Agreement or Market value

whichever is higher.

5. The agreement is to be done on agreement or market value whichever is higher. Market

value is to be calculated by following formula:

Market Value = Build up Area RatRs per Square Feet X

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COLLECTION DEPARTMENT

The collection department is the main hub in this business unit, wherein the

money is collected from the customer after the booking is done. The customer can

officially book the shop only after paying the token amount. The token amount varies

with respect to place and project. The customer details are jot down in the booking

advice. This is done in order to ensure that the follow up of the particular customer is

done and also to keep a check i.e., that customer should pay the latter half of the

remaining amount within the time limit. The follow up mainly helps in maintaining

essential records which is in Microsoft Excel format. It is made sure that the database is

up to date at any given point of time so as to maintain the flow of the various activity

related financial transaction. If the customer fails to repay the amount on time, as a

penalty he/she liable to pay the interest on the remaining amount. We are there to keep

keen observation on every individual account. We had to report to Mr.Haware about

the full weeks detailed data in order to give him the current scenario of his project.

Example:

Mr. A came to the site for seeing the shop and buying it to start his own business.

We gave him a fair view of all the shops available with us, the cost and size of the shop

varied differently. The cost of the shop was dependent upon floor wise also. We had

G+2 floors. Among which ground floor was the most expensive one.

After going through our shops Mr .A decided to purchase shop at first floor.

Then we took out our booking advice which had to be filled by us which carried all the

information pertaining the client which was of our great use. After filling the booking

advice we took the token amount which had to be more than Rs.11000/-. Suppose Mr.A

purchases shop in Fantasia project, Vashi on first floor. First process is to fill booking

advice.

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Booking advice includes:

Name of customer :

Address:

Date of booking:

Mobile number:

Office Number:

Residential Number:

Sq Ft.: Area

Flat/Shop No.

Shop cost.

Booking Amount.

After filling booking advice, booking advice will go to Haware head office,Vashi

for confirmation. When that booking goes to head office at that time shop is confirm for

that customer till registration. After registration legally that shop will transfer to Mr.A’s

name.

At the time preparing booking advice Mr.A decided to pay their 50% amount

within 15days as per their requirement and their condition, for remaining they required

bank loan. So we have to keep contact with Mr. A and remind every time about

payment, recorded all payment detail in excel sheet wherever payment is made by Mr.

A . Within 15 day Mr. A paid their 50% amount.

Mr. A Purchased on 9 May2011, 300 sq. Ft., on first floor as per demand at that

time per square rate was Rs.10,000. Therefore total cost for Mr.A’s shop is

Rs.3000000 +x /-. While booking, Mr.A gave Rs.25000/- as a token money in cheque.

Mr.A completes their 50% payment within 15days. If it could not possible from

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loan on remaining 50%. So within 15days when Mr.A was paying their part of payment

we contact with our bank and fulfil all requirement of bank.

Firstly bank required following document from customer’s side :

If business man then 3 years Income tax returned filed,if service men then

form no.16 from and 3 years salary slips.

Last 1 years updated bank pass book copy.

Residential proof :- Electricity bill, Pan card Xerox,

2 photograph

Agreement and register document.

Estimated 5 years projected balance sheet some bank required

Every bank has different criteria for different customer. Co-operative bank like Ma-

hanagar Co-Operative Bank, Abhyudaya Bank, Saraswat Co-Operative Bank provided

loan only to businessmen not for servicemen and not NRI person. Only businessmen are

eligible for their requirement. And bank’s like ICICI, HDFC etc. provide loan to busi-

nessmen as well as NRI and Servicemen. Servicemen should have net salary more than

Rs.30000.

Rate of Interest is also differing from bank’s to banks. Co-operative bank have

less interest compare to nationalised bank. Rate of Interest for commercial loan is

between 12.5% to 14.0 %. Bank’s also charger processing fees and charger for pre-pay-

ment. Processing fees also differ from bank to bank between 0.5% to 1.0%.

It took 15days to provided loan to Mr.A after providing every document

which is required.

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SELLING & MARKETING DEPARTMENT

The ultimate aim of the Real Estate Marketing is to increase the demand for a

particular type of property and to increase the price so that the seller of the property

owns the highest amount of profit for himself. The Real Estate marketing is needful also

to make the Real Estate project work and make it familiar among the public as much as

possible. Most of the Real Estate sellers keep an amount intact just for their Real Estate

Marketing and on that basis they choose certain Real Estate Marketing Agents and give

them the responsibility to sell their property off with as much profit as possible. If the

seller’s budget is big enough then he can go for renowned Real Estate Marketing

agency and for those with small budgets the smaller agencies are also available. Most of

the big Real Estate owners who want to sell their properties prefer to go for big

marketing agencies as they have better ways to promote one's properties and have able

agents who can find the right kind of agents working for them who have better contacts

and have better ways to popularize the real estate property.

A good Real Estate Marketing Agency always puts special emphasis on the right

kind of information that one needs before starting Real estate Marketing and for that the

agency normally conducts some kind of survey to gather the right kind of information.

Later the Real estate marketing Agency depending on that report develops their ways of

marketing.

Nowadays a lot of Real estate marketing is done through the help of the Internet.

One can have various websites that do marketing for different real estate properties for

a certain amount of money. One also needs to make the website precise and filled with

to the point information. The Real estate Internet Marketing is a very simple process

and is cheaper in nature as well. Although one needs to keep the demands and the

reasonable amount of price in mind.

I was functioning under operational projects of Alliance Property Services for

Haware’s Commercial Projects namely -

Fantasia Commercial & Shopping Complex, Vashi

Vashi Infotech Park, Vashi58

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Haware Infotech Park, Vashi

Fantasia Mall, Vashi

In marketing, Promotional strategies were used namely -

News paper advertisements, TIMES OF INDIA (every Friday)

Visual media ads in local cable channels

Direct Marketing(door-to-door) in commercial complexes and

Through www.iproperty.com.

Business cards can either by a waste of paper or an effective bridge between a prospect

and their potential as a long-term client. So, follow-ups of all the business cards that

were dropped in at the site office were done on a daily basis.

Brokers & agents were also approached to get their clients for the deals. Telephone

& Email follow-ups also formed a part of my job. There was face-to-face interaction

with the customers for the sale of shops/offices by convincing them to buy.

Customer Database was also maintained considering various heads like- Date of

purchase, Shop/Office no., Name of the customer, Area of the shop/office in sq.ft.,

Total value of Shop/office in Rupees, Total Received(cash/cheque) and Balance

amount.

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CHAPTER 4:

STUDY OF SELECTED

RESEARCH PROBLEM

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4.1 STATEMENT OF RESEARCH PROBLEM

Some achievements often require long, tortuous, bitter experiences powerful enough to

derive one to despair. But one must rise above disappointments neglect and renew the

pledge-devoted action. This study is also bound to come up with some constraints and

limitations that made efficiency of the report low and to extend deviated from its main

line of thoughts. Thought no stone was left unturned to make this study more precise,

accurate to the objectives, yet there were some limitations, which are not so worthy to

make my study more meaningful. Some of the limitations are as follows-

Time was the major constraint for conducting the study, as I am an industry-

integrated student it was difficult to devote sufficient time for preparation of report.

The study involves a lot of cost and energy.

As Faridabad is not representation of total population, the result to the extent may be

biased.

Mainly persons didn’t feel interested in giving their views in the area of real estate or

they may give fake answers so, it is quite difficult to get at exact result.

4.2 STATEMENT OF RESEARCH OBJECTIVES

The project titled procedures & documentation of APS is clearly defined & based on

systematic research design to meet the objectives of the study. The logical analysis of

various aspects of the data is made to arrive at the results of the study.

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The research process includes the following steps:

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Defining the

problem.

Statement

of research

objectives.

Planning the research design. Planning the sample.

Collection of data.

Analyzing the data.

Formulation of conclusion. Preparation of the report.

TYPES OF RESEARCH

Exploratory Research

Descriptive Research

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Exploratory Research

It is done to generate new ideas; respondents should be given sufficient

freedom to express themselves. It is generally based on secondary data

that are readily available. Therefore unable to frame detailed research

questions.

Descriptive research

It is undertaken when researcher is interested in knowledge the

characteristics of certain groups such as age; sex; educational level;

occupation or income; interested in knowledge the proportion of it in a

given population who have behaved in a particular manner; making the

projections of a certain things; or determining the relationship between

two or more variables, descriptive study may be necessary.

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4.3 RESEARCH DESIGN & METHODOLOGY

Data collection methods can be classified into two methods:

1. Primary methods

2. Secondary methods

PRIMARY METHODS

Data directly colleted by a researcher is known as Primary DataThe methods used for collecting primary data may be:

1. Survey.

2. Observation.

Sources of primary data1. Interview methods

(a) Mail interviews(b)Telephone interviews.

2. Projective technique

3. Focus group interviews

4. Questionnaire(a) Structured(b)Unstructured(c) Semi-unstructured

SECONDARY METHODS

Data not originally collected for use in the research project under consideration, but rather for use by some other person or for some other project are termed

Secondary Data -

It can be classified into two categories:1. Internal Sources

2. External Sources

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Sources of secondary data

Internal Sources

Sales recordsCredit recordsInternal records Published

DirectoriesPeriodicalsFinancial recordsStatistical recordsAdvertising

External Sources

CommercialDemographic dataStore auditDiary panelExplosives

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It is a type of blueprint prepared developing on various types of blueprints available for

the collection, measurement & analysis of data. The design of a research study is based

on the purpose of the study

Types of research design

Qualitative Design Research

.Quantitative Research Design.

RESEARCH METHODOLOGY ADOPTED

Research design- Quantitative and Qualitative

Sampling plan-

1. Sample method- Probability Sampling

2. Sample size- Wide

Sampling design

Cluster and Area Sampling

Sources of data

Data collected by me is 65% secondary and 35% primary.

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CHAPTER 5:

ANALYSIS.

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5.1 ANALYSIS OF DATA

Price Variations in India

There are unbelievable variations in the prices of real estate sector in the past. Which

mainly affect to the sale of business. Mainly there are two causes for the same:

Per Capita Income

GDP at Market Price

Per Capita Income

As depicted by fig. 2 per capita income is increasing in India, which has increased the

purchasing power of the people. Due to this over the last year (2006-07) houses prices

have raised by 10-90% and commercial property prices by 10-30% in different area of In-

dia. Correlation .996 is found between PCI and real estate prices. Thus there is a positive

correlation between per capita income and real estate prices.

GDP at Market Price

GDP, the indicator of the national growth, from the past 2-3 years is increasing by 6.5%

to7.5%. Every rupee spend on the construction add to nearly 60% of GDP. As shown by

the figure the GDP has increased from the 2463324 crore to 3529240 crore from 2002-03

to 2005-06, so it indicates that how the spending on the construction sector helps the real

estate prices to increase.

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Price Variations in Different cities:

Price variations in Mumbai

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Price variations in Kolkata

It is clear from the above tables that in real estate prices are touching heights. In some ar -

eas the prices are increased by 90-100%. In Gurgaon and Noida prices has jumped by as

much as 200%. The cheapest DLF apartment in Gurgaon costs Rs. 1 crore.

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Clear Title

90% of the lands in India do not have clear title. The ownership is unclear, thereby creat-

ing a scarcity of land. This is due to poor record keeping and outdated complaint pro-

cesses. All updated records must be computerized to increase transparency in land owner-

ship. And special fast track courts must be set up to clear all legal land disputes in a short

period of time.

Stamp Duty & Registration

The cost of transferring land titles must be reduced from rates of 10% stamp duties to rea-

sonable levels of 3 to 5%; similar to prevailing rates in developed countries. This will en-

courage sellers to pay stamp duties, instead of trying to cheat the government, thus in-

creasing the revenue for the country. The high duties have also encouraged unaccounted

money being used in most real estate transactions in India. The registration procedure

should also be made transparent and simple so that corruption can be minimized.

Building Codes, Standards & Permissions

There are several building guidelines and standards in various cities and states, however

they are neither followed by the developers nor implemented by the authorities.

Development and Planning

In India development and planning concerned with real estate sector is not up to the

mark. The city or state authorities must use professionals to plan and execute all develop-

ment plans for cities and towns, with future development in mind. This must be done

without political compulsions. This will allow proper zoning within cities and towns,

green areas and other infrastructure systems to fall into place as the development plans

unfold.

Present Scenario in India

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Up to the end of 2007 real estate sector in India was growing at a very high rate. There

was a situation of boom in this sector. The home loans were easily available and RBI was

following very liberal policies regarding the interest rates. But in 2008 the things are

changing due to the high rate of inflation in the Indian economy. There is uncertainty in

the market as share market is showing depression and the RBI is also increasing the Bank

rate leading to the increase in the interest rates. So the buying power is reducing. The ma-

jor reasons for this downfall are inflation and the low rate of GDP.

5.2 Summery Of Findings

• As the GDP increases the real estate prices also increases because there is a high de-

gree of positive correlation between the real estate prices and GDP.

• Real estate prices also increases with increase in the per capita income as there is high

degree of positive correlation between these two also.

• The infrastructure of India is also growing day by day so it adds to the better facility to

different sectors which affect the real estate prices.

• The FDI into the country affects the real estate FDI and real estate having a positive

correlation leads to the boom in this sector. Increase in FDI from 2006 to march 2007 is

10%. Earlier it was 16% and now in 2008 it is 25%.

• The interest rate also affects the real estate prices because it affects the lending and bor -

rowing by the investors.

• The growth in the real estate sector is between 25-30% in a residential sector, 10-15%

in commercial sector and agriculture sector.

• Housing sector constitute 80% of real estate in terms of value and 20% by commercial

sector.

• In residential segment, availability of easy home finance and rising purchasing power

has driven the growth. Builders are launching high-end, life style residential products to

cater to the growing bunch of high net worth individuals.

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• In 2008 the growth of real estate sector is going down due to high inflation and hike in

home loan rates by the banks following the increase in bank rate and SLR by the RBI

• The outsourcing and IT/ITES industry have contributed to the demand for quality of-

fice-space. The estimated demand from IT/ITES sector alone is expected to be 150mm

sq. ft. of space across the major cities by 2010.

CHAPTER 6:

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SUMMARY AND CON-CLUSION

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6.1 SUMMARY OF LEARNING EXPERIENCE

I To find out the awareness among how property can be legally purchased.To

understand that how realty sector can grow in modern era.To evaluate success rate of

these policies.I have learned so many just like how to handle the market situation in

inflation?, How tohandle the customer Queries?, Preparation of the documents at the

time Purchasing, Selling,Leasing, Reselling the property?

6.2 CONCLUSIONS AND RECOMMENDATIONS

Go for the Long Shot there are no such suggestions and recommendations on my

behalf for the whole company as I am only a small part of the company. So I can’t

consider myself up to that level that I can recommend for every part of the company.

But still, I can recommend few suggestions in the field of real estate as I have

researched and gone through the same experience as others manager or more I can

conclude for the future welfare and growth of the company as one of the part of the

company, which are as follows:

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The work to be done should not be delayed by the colleagues as it creates

many disturbances and Mis-coordination.

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Based on major findings of the study, the researcher has come out with some

viable

suggestions:

The following recommendations are made this paper-

• Due to high prices the lower income group is not able to purchase the shops, so com-

pany should take kept in mind to protect the lower income group.

• The agriculture land covered into the commercial and residential purpose. But the

population is also increasing day by day. So company should steps for the same.

• The investors should analyze the type of project in which they are going to invest

and the potential returns from it.

• Privatization of Airports and ports needs to be speed up.

• There is a lack of proper data and management of the real estate sector so company

should take the corrective steps in this regard so that the proper estimation and man-

agement of the real estate can be made possible.

• Commonwealth is scheduled for 2010. Hotels, sport stadiums and other infrastruc-

ture to have successful games need to be expedited. This is another great opportunity

for foreign developers and investors to step in India. Thus more and more encourage-

ment should be given to foreign investors.

• Stamp duty is extremely high and must be rationalized and brought down to 2-3% as

per global practice, which is now in India varies from 5-6%.

• Due to lot of investment avenues in real estate in India, fraud cases are also increas-

ing day by day like in Navi Mumbai deconstruction of buildings. Thus careful mea-

sures and laws should be enacted to deal with these types of situations.

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Conclusion

After studying all the factors of the real estate it can be concluded that the Real Estate

is a very wide concept and it is highly affected by the macro-economic factors like

GDP, FDI, per capital income, Interest rates and employment in the nation. The most

important factor in the case of Real Estate is location which affects the value and re-

turns from the Real Estate. India needs a stronger capital market base for property fi-

nancing. The debate on the potential introduction of REITs and real estate funds

points in the right direction. The introduction of REIT s in 2007, will give interna-

tional investors in particular a familiar investment vehicle. Private investors could also

enter into indirect investment in real estate. Although interest in new projects is most

likely to come primarily from institutional investors, the rising middle class is likely

to seek new instruments aside from direct property investments in the medium term.

So, in the end we can say that the investment in Real Estate in India is a very good in -

vestment opportunity. But one should be very careful while taking decision in this di-

rection due to rising inflation and interest rates. Legal issues should also be kept in

mind while choosing a property.

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BIBLIOGRAPHY

Websites:

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www.iproperty.com

www.suryarealtors.com

www.google.com

Newspapers:

The times of India

Hindustan times

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QUESTIONNAIRE

1. Do you need property?

Yes No

2. What is your opinion about Real Estate?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

3. Which is the best way to buy the property?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

4. What extra benefits to purchase the property?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

5. Do you have ever purchased any property?

Yes No

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6. According to you which real estate company is performing best now days and on whatbasis?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

7. Is the information provided by you above is based on your:

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Knowledge

Judgment

Personal experience

Other source

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8. Real Estate Sector is developed with previous record? Yes

No