DISSERTATION
On “Buying behavior and consumer preferences in the Residential Real Estate industry in Delhi NCR region”. By Gaurav Bhardwaj A0101911222 MBA Class of 2013
Under the Supervision of Mrs. Vandana Gupta Assistant Professor Department of Marketing
In Partial Fulfillment of Award of Master of Business Administration
AMITY BUSINESSS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
DECLARATION
I, Gaurav Bhardwaj , student of Masters of Business Administration from Amity Business School, Amity University Uttar Pradesh hereby declare that I have completed Dissertation on „Buying behaviour and consumer preferences in the Residential Real Estate industry in Delhi NCR region‟. .
I further declare that the information presented in this project is true and original to the best of my knowledge.
Date:
Gaurav Bhardwaj Enroll. No: A0101911222
Place: Noida
MBA Class of 2013
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AMITY UNIVERSITY UTTAR PRADESH AMITYBUSINESSSCHOOL
CERTIFICATE
I, Vandana Gupta, hereby certify that Gaurav bhardwaj student of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed dissertation on „Buying behaviour and consumer preferences in the Residential Real Estate industry in Delhi NCR region‟.
Vandana Gupta (Assistant Professor) Department of Marketing
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ACKNOWLEDGEMENT
The completion of any task depends upon the co-operation, coordination and consolidated efforts of several resources of knowledge, energy, time and above all the proper guidance of an experienced person. Therefore I approached this matter of acknowledgement through these lines trying my best to give full credit where it deserves. I wish to express my gratitude to those who helped me to complete this report with their knowledge and expertise. I would like to take this opportunity to express my deep gratitude Ms. Vandana Gupta (Department of Marketing and Sales) for giving me the opportunity to choose this topic and the guide me regarding the report. With great esteem and reverence, I would like to thank all those who have helped me with this report. I hope that the report will help to assimilate and learn from best practices shared by others in the industry.
Gaurav Bhardwaj MBA-General 2011-13
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Table of Contents
Chapter 1: Introduction .......................................................................................................................... 1 1.1
Housing growth trajectory ...................................................................................................... 2
1.2
Recent industry trends ............................................................................................................ 3
Chapter 2: Literature Review .................................................................................................................. 8 CHAPTER 3 : Research Methodology .................................................................................................... 15 3.1.1 Research title ........................................................................................................................... 15 3.1.2 Objectives of Study .................................................................................................................. 15 3.1.3 Hypothesis................................................................................................................................ 15 3.4 Research Design .......................................................................................................................... 15 3.5 Questionnaire Design.................................................................................................................. 16 3.6 Data Collection ............................................................................................................................ 16 3.7 Sampling Design .......................................................................................................................... 16 3.8 Instruments Used for analysis..................................................................................................... 17 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION ............................................................................ 18 4.1: Number of People who are permanent residents of Delhi Ncr. ................................................ 18 4.2: Number of people who have bought a property in Delhi NCR .................................................. 19 4.3 : Number of years respondents have been living in Delhi Ncr. .................................................. 20 4.4 : Ranking of localities in order of preference.............................................................................. 21 4.5: Number of Respondents who have bought properties in Delhi Ncr for the purpose of Investment. ....................................................................................................................................... 23 4.6 Type of Residential Property Preferred. ..................................................................................... 24 4.7 Preferred Payment Plan. ............................................................................................................. 28 4.8 : Respondent’s awareness of Big real estate developers. .......................................................... 29 4.10 : Real Estate Company Preference ............................................................................................ 31 4.12: Ratings of key factors while making buying decision .............................................................. 33 v
4.13 Factors Ratings .......................................................................................................................... 41 4.14: Important sources of Information ........................................................................................... 42 4.15: Income Level of the Respondent. ............................................................................................ 47 Crosstabs: .............................................................................................................................................. 48 Figure 4.16a) : Relationship between the income level of the respondent and payment plan preferred . ......................................................................................................................................... 48 4.17a) : For buying a property , what payment plan do you prefer ? * Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price? .................................................................................. 50 4.18 Please mark the options from which you take help while making a buying decision? a)Television * What is your annual Income? .................................................................................... 52 4.19 What type of residential property do you prefer? * What is your annual Income? Cross tabulation .......................................................................................................................................... 56 4.20 Correlations:.............................................................................................................................. 58 CHAPTER 5 : FINDINGS .......................................................................................................................... 61 CHAPTER 6: CONCLUSION AND RECOMMENDATIONS ......................................................................... 63 6.1Conclusions .................................................................................................................................. 63 6.2 Recommendations ...................................................................................................................... 66 Bibliography .......................................................................................................................................... 68 Annexure ............................................................................................................................................... 70
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List of Figures
Figure 4.1 : Are you a permanent resident of Delhi NCR region? ....................................................... 18 Figure 4.2 : Have you ever bought any property in Delhi NCR? .......................................................... 19 Figure 4.3: For how many years have you been living here? ................................................................ 20 Figure 4.4a) : Compiled ranking of localities(NCR) in order of preference. ........................................ 21 Figure 4.4 b) : Is there any specific reason for giving that locality the highest ranking? ...................... 22 Figure 4.5 : Have you ever bought a residential property in the Delhi NCR region for the purpose of Investment? ........................................................................................................................................... 23 Figure 4.6 a): What type of residential property do you prefer? ........................................................... 24 Figure 4.6 b): Will your preference in the last question change if the property is being bought for investment purpose?.............................................................................................................................. 25 Figure 4.6 c): If yes, what will be your preference in that case? ........................................................... 26 Figure 4.6d) : Data Comparison ............................................................................................................ 27 Figure 4.7 : For buying a property , what payment plan do you prefer ? .............................................. 28 Figure 4.8 : Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc.? .............................................................................................................................................................. 29 Figure 4.9 : Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price? ............................................. 30 Figure 4.10 : Please tick the Real estate company‟s name you would prefer buying a Property from. 31 Figure 4.11 : Please tick the options that you take into consideration while choosing a real estate company to buy a property from. .......................................................................................................... 32 Figure 4.12a): Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- a)Price .............................. 33 Figure 4.12 b)Privacy ............................................................................................................................ 34 Figure 4.12 c)Location .......................................................................................................................... 35 Figure 4.12 d) Neighborhood ................................................................................................................ 36 Figure 4.12 e) Area/size of the property............................................................................................... 37 Figure 4.12 f): Parking facility ............................................................................................................... 38 vii
Figure 4.12 g): Proximity to workplace ................................................................................................. 39 Figure 4.12 h): Interiors ........................................................................................................................ 40 Figure 4.13 : Factors Ratings ................................................................................................................ 41 Figure 4.14 : Source of Information. ..................................................................................................... 46 Figure 4.15 : Income level ..................................................................................................................... 47 Figure 4.16 : Relationship between the income level of the respondent and payment plan preferred . .............................................................................................................................................................. 48
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List of Tables
Table 4.1 : Are you a permanent resident of Delhi NCR region? ......................................................... 18 Table 4.2 : Have you ever bought any property in Delhi NCR? .......................................................... 19 Table 4.3: For how many years have you been living here? ................................................................ 20 Table 4.4a) : Compiled ranking of localities(NCR) in order of preference. ......................................... 21 Table 4.4 b) : Is there any specific reason for giving that locality the highest ranking? ...................... 22 Table 4.5 : Have you ever bought a residential property in the Delhi NCR region for the purpose of Investment? ........................................................................................................................................... 23 Table 4.6 a): What type of residential property do you prefer? ............................................................ 24 Table 4.6 b): Will your preference in the last question change if the property is being bought for investment purpose?.............................................................................................................................. 25 Table 4.6 c): If yes, what will be your preference in that case? ............................................................ 26 Table .6d) : Data Comparison ............................................................................................................... 27 Table 4.7 : For buying a property , what payment plan do you prefer ? ............................................... 28 Table 4.8 : Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc.? 29 Table 4.9 : Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price? ............................................. 30 Table 4.10 : Please tick the Real estate company‟s name you would prefer buying a Property from... 31 Table 4.11 : Please tick the options that you take into consideration while choosing a real estate company to buy a property from. .......................................................................................................... 32 Table 4.12a): Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- a)Price .................................................... 33 Table 4.12 b)Privacy ............................................................................................................................. 34 Table 4.12 c)Location ........................................................................................................................... 35 Table 4.12 d) Neighborhood ................................................................................................................ 36 Table 4.12 e) Area/size of the property ............................................................................................... 37 Table 4.12 f): Parking facility ................................................................................................................ 38 Table 4.12 g): Proximity to workplace ................................................................................................. 39 ix
Table 4.12 h): Interiors ......................................................................................................................... 40 Table 4.13 : Factors Ratings ................................................................................................................ 41 Table 4.14 a) : Sources of Information : Newspapers. ......................................................................... 42 Table 4.14 b) : Sources of Information : Television. ............................................................................ 42 Table 4.14 c) : Sources of Information : Radio. .................................................................................... 43 Table 4.14 d) : Sources of Information : Property Sites. ...................................................................... 43 Table 4.14 e) : Sources of Information : Developer’s Site.................................................................... 43 Table 4.14 f) : Sources of Information : People’s References. ............................................................. 44 Table 4.14 g) : Sources of Information : others. .................................................................................. 45 Table 4.14 h) : Sources of Information : Complied Frequency of Responses. ................................ 46 Table 4.15 : Income level ..................................................................................................................... 47 Table 4.16a) : Relationship between the income level of the respondent and payment plan preferred . ............................................................................................................................................................. 48 Table 4.16b) : Relationship between the income level of the respondent and payment plan preferred: Chi Square Test . .................................................................................................................. 48
Table 4.17a) : Relationship between the payment plan and * Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price? . ............................................................................................................................................................. 54
Table 4.17b) : Relationship between the payment plan and * Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price? (Chi Square test) . ............................................................................................................................................................. 54
Table 4.18a) Please mark the options from which you take help while making a buying decision? b)Television * What is your annual Income?..........................................................52 Table 4.18a) Please mark the options from which you take help while making a buying decision? b)Property Sites * What is your annual Income?....................................................53 Table 4.18a) Please mark the options from which you take help while making a buying decision? b)Developer’s Sites* What is your annual Income?................................................54 x
Table 4.18a) Please mark the options from which you take help while making a buying decision? b)People’s Reference * What is your annual Income?............................................55 Table 4.19a) What type of residential property do you prefer? * What is your annual Income? Cross tabulation............................................................................................................................................56 Table 4.19v) What type of residential property do you prefer? * What is your annual Income? Cross tabulation: Chi Square Test..................................................................................................................57 Table 4.20 : Please rate the following key factors on a scale of 1 to 5 that you take into
consideration while making a buying decision for a residential property……………………………58
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Executive Summary
The real estate sector in India assumed greater prominence with the liberalization of the economy, as the consequent increase in business opportunities and labour migration led to rising demand for commercial and housing space. At present, the real estate and construction sectors are playing a crucial role in the overall development of India‟s core infrastructure. The real estate industry‟s growth is linked to developments in the retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals, schools) and information technology (IT)-enabled services (like call centers) etc and vice versa.The Project is titled „Buying behavior and consumer preferences in the Residential Real Estate industry in Delhi NCR region‟. The Study is mainly focuses upon identifying the buying behavior of the customers and their preferences. The main objective of the study was to know: To study the set of factors that a consumer takes into consideration while making a decision of buying a home in Delhi NCR Region. To find out the effect of brand preference on the buying behaviour of the consumer. Buying preferences of the consumers for the type of property. Preferences of consumers for the type of payment plan. The study covered most of the areas in Delhi NCR including places like Gurgaon, Noida , Ghaziabad , Greater noida and Faridabad and most of the leading realtors .The sampling technique used for this study was convenient sampling and the sample size was 120. A descriptive study was conducted via questionnaire involving MCQ‟s, Open ended and close ended questions. The analysis is done with the help of SPSS, and shown with the help of Graphs, bars, charts and tables. As a result of this survey, It was fairly concluded Price is the most important factor in making the buying decision by customers, people prefer Gurgaon the most for buying a property in NCR also Market Reliability of a Company is the most preferred factor that the customers look for before buying a property from it. There is also a significant relationship between the payment plan preferred and the income level of the customer.
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Chapter 1: Introduction
The real estate sector in India assumed greater prominence with the liberalization of the economy, as the consequent increase in business opportunities and labour migration led to rising demand for commercial and housing space. At present, the real estate and construction sectors are playing a crucial role in the overall development of India‟s core infrastructure. The real estate industry‟s growth is linked to developments in the retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals, schools) and information technology (IT)-enabled services (like call centers) etc and vice versa. The Indian real estate sector has traditionally been dominated by a number of small regional players with relatively low levels of expertise and/or financial resources. Historically, the sector has not benefited from institutional capital; instead, it has traditionally tapped high networth individuals and other informal sources of financing, which has led to low levels of transparency. This scenario underwent a change with in line with the sector‟s growth, and as of today, the real estate industry‟s dynamics reflect consumers‟ expectations of higher quality with India‟s increasing integration with the global economy.
Residential real estate industry has witnessed stupendous growth in the past few years owing to the following reasons: • Continuous growth in population • Migration towards urban areas • Ample job opportunities in service sectors • Growing income levels • Rise in nuclear families • Easy availability of finance 1
Demand for houses increased considerably whilst supply of houses could not keep pace with demand thereby leading to a steep rise in residential capital values especially in urban areas. Broadly, residential real estate industry can be divided into four growth phases, as can be seen in the chart below:
1.1 Housing growth trajectory
Phase I (2001-2005) was an initial growth phase with stabilizing residential real estate prices following the global recovery post the “dot com” bust and 9/11 terrorist attacks in New York. At the same time, there was steady growth in Indian economic activity, noteworthy recovery in IT/ITES industry, growing urbanization and a rising trend towards nuclear families. Phase II (2006-2008) was a high growth phase where high demand for residential real estate led to doubling of housing prices. Demand rapidly increased due to India‟s growing population, accentuated urbanization, rising disposable incomes, rapidly growing middle class and youth population, low interest rates, fiscal incentives on interest and principal payments for housing loans and heightened customer expectations. Phase III (2009-2010) witnessed substantial slowdown and part recovery in demand because of the global economic downturn, which led to a decline in affordability and tight liquidity. The retreat of various real estate investors, accompanied by slowdown in the capital markets, has resulted in oversupply and falling prices. Phase IV (2011-2014) is expected to remain a consolidation phase after slowdown. Demand is expected to remain strong with capital values witnessing modest rise. This period is expected to witness substantial supply of housing especially in urban areas. In spite of the stupendous growth witnessed in the past 10 years, substantial housing shortage is still prevalent in India. Housing shortage in India is estimated at 78.7 million units at the end of Phase II. The overall housing shortage in India is likely to decline to 75.5 million units by the end of Phase IV.
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However, housing shortage in urban areas will continue to rise owing to migration towards urban areas and iNCReasing trend of nuclear families. Housing shortage in urban areas is estimated at 19.3 million units at the end of 2008, up from 15.1 million units at the start of 2005. Housing shortage in urban areas is likely to touch a walloping 21.7 million units by the end of 2014. Rural areas, on the other hand, will witness a reduction in housing shortage due to migration and conversion of kutcha houses into pucca houses. The government‟s continuous focus on improving the housing situation, especially for population below poverty line, under schemes like Indira Awaas Yojna, Rajeev Gandhi Aawaas Yojna, Two Million Housing Programme, is expected to reduce housing shortage in rural areas. Rural housing shortage is expected to decline to 53.8 million units by 2013-14 from 59.4 million units at the end of 2008.
1.2 Recent industry trends Despite strong fundamentals backing the residential real estate, the segment is highly influenced by economic cycles. Owing to global meltdown, the residential real estate market in India too witnessed an astounding fall in demand and capital values, between first half of 2008 and first half of 2009. However, the sector experienced a pickup in demand during the second half of 2009 across major cities mainly attributed to improvement in economy. Residential projects across cities saw several new mid-income housing projects being launched by developers to attract potential buyers. Demand for houses mounted as the global economy improved bringing back financial confidence to the home buyers along with low interest rates. End-users, who had put their purchasing plans on hold due to the fall in affordability levels and job-related uncertainties, started booking houses. 1.2.1 Delhi An approximate 75% end-user presence makes this a largely end-user driven market. However, there is a heavy financier presence in this micro market. Across Delhi it has been observed that the transactions are at rates much higher than the designated circle rates.Circle rates are the minimum rates for the valuation of land and immovable properties in Delhi. These rates are taken into consideration for registration of instruments related to land and 3
immovable properties in Delhi by all the registering authorities. Land transactions are estimated at rates over 10 times of the circle rates in most parts of the capital city. According to the Delhi Master Plan 2021, 'greater efficiency and benefits through a unified metro transport authority' are being targeted. Acknowledging the increased vehicle density, the government is trying to rope in theprivate sector to develop parking facilities through multi-level and underground parking spaces. It is also planning an integrated multi-modal public transport system to reduce the pressure of private transport on the road. Cycle tracks, pedestrian- and disabled-friendly features in the arterial and sub–arterial roads are also being planned.
1.2.2 Gurgaon:
Gurgaon markets have reached a high level of appreciation. This year launches have been slow and the transaction volumes have been low. However, over a 4-5 year period the Gurgaon market will see good appreciation. This will be because of employment opportunities, heavy investor appetite and a strong broker community presence in this micromarket. While Golf Course Road (GCR) and Golf Course Road Extension areas are seeing the launch of a few high end properties and builders are looking at higher margins, areas like Dwarka Expressway are seeing interest on account of affordability and the bet on the future infrastructure in that area. Price Trends in Gurgaon
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1.2.3 Noida,
Infrastructure issues The market has ample supply and the demand has moderated. While the fall of Greater Noida and Noida Extension markets has benefited Noida (rates have moved up marginally in certain projects), the situation is one of wait and watch. Over a long term horizon, the Noida markets will see a 10-15% YoY appreciation on the basis of the healthy infrastructure story in Noida and its heavy end-user base. Farmer protests over land acquisition in Greater Noida and Noida Extension have slowed down the market. We see a downside risk in capital value over the one-year horizon due to land issues and an oversupply situation. However, over the long term this sector will recover on account of good infrastructure and continued demand from the sub INR 3,000/sq.ft. category home buyer.
The Gurgaon real estate market falls under the jurisdiction of the Haryana government whereas the Noida market comes under the purview of Uttar Pradesh. Buyers tend to invest their money based on the comfort level with the respective governments.
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Greater Noida and Noida Extension:
The real estate markets in Gurgaon and Noida are driven by very different dynamics; they are in fact at contrasting ends of the real estate spectrum in certain aspects. The Haryana government in Gurgaon allows developers to directly acquire land from farmers. Later, the builder applies to the government for infrastructure support for his project. So here, acquisition is followed by the completion of the project and subsequently, infrastructure support from the government. However, the Uttar Pradesh government in Noida follows a different model. Here, the government directly acquires land from the farmers, after which it draws a plan in terms of infrastructure support for the area, and earmarks plots. The last stage involves auctioning the plots to builders. So, infrastructure support comes before the residential project. 6
Gurgaon's infrastructure issues in terms of water, power and roads are a cause of concern. The city lacks proper amenities to support the rising new supply. In comparison to Noida, the degree of planning and road connectivity in Gurgaon appears to be flat. As discussed earlier, this comes from the model of land acquisition followed by the government. In Noida many of the erstwhile infrastructure issues have been resolved with better road connectivity, better water supply in most pockets, well laid out drainage systems, and reduction of load shedding from 8-10 hours to just 1-2 hours. The Metro has penetrated till sector 50, with the end station being 'Noida City Centre'.
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Chapter 2: Literature Review
Mwfeq Haddad (2011) According to the researcher objective of this study is to investigate the main factors that influencing the customers' buying behavior toward apartment, and tried to identify the most influencing factors that affect buying. A convenience sample consists of 120 persons who already bought an apartment in different areas in Amman. One sample ttest, independent sample t-test, and one-way ANOVA were used in testing the hypotheses. This study found that respondents would significantly adopt the main constructs when buying residential apartments, including aesthetic, economic, marketing, geographic, and social constructs. And the study concluded that there were significant differences in decision making regarding buying residential apartments according to the sample gender and Age. And there were significant differences in the respondents answer due to age and there were no significant differences according to the marital status or educational level. Buying an apartment is one of the most significant economic decisions that people make, and it requires gathering a lot of information regarding its features (Hua Kiefer, 2007). The role of marketing is one of the keys in the success of any businesses. This study concentrates on the factors that affect purchasing of the real estate; this kind of studies has not much been investigated in the Jordanian market, particularly in the real estate. It is one of the businesses that depend on many factors for purchasing. From investigations and field survey,researchers classified the important factors affecting the decision to buy a definite apartment and they are: Form,Views, Decoration, Entrance, Design, Finishing, Price, Advertising, Credibility, Reputation, Income, Interest, Apartment Area, Conversion and Taxes. Susan L. Nelson (1998) Most real estate study is base on neoclassical economics. Consumers are expected to make real estate decisions that maximize their utility and wealth given price and income constraints. Tastes and preferences are taken as given. The outcomes of consumer actions are used to infer these preferences. The study of real estate would benefit from an expansion to include consumer behavior concepts from sociology and psychology as synthesized through marketing. Inclusion of these concepts in real estate education will help real estate analysts better explain and predict the behavior of decision-makers in real estate markets. This paper will present a review of the consumer behaviour literature relevant to real 8
estate and suggest how these concepts could expand real estate study. Much of the study of consumer behavior focuses on consumer choice. Utility theory in economics and attitude theory in social psychology have strong similarities and constitute a basis for consumer decision and choice processes. Consumers purchase goods and services for the benefits derived from their use. While the study of economics focuses on outcomes, consumer behavior emphasizes the process. Rather than assuming perfect conditions, consumer behavior researchers explicitly recognize the impact of situational elements on behavior and the variance among individuals. Most real estate purchases and leases would be considered high involvement goods that would require complex decision-making. The three major comprehensive models of this type of consumer decision making (Engel, Kollat and Blackwell, 1968; Howard and Sheth, 1969; Nicosa 1966) trace the psychological state and behavior of individual purchasers from the point at which they perceive a need through the search for information, evaluation of alternatives, purchase, and final evaluation of the consequences. The assumption is that a purchase act is preceded by a sequence of mental information processing. This involves a cognitive function in forming beliefs, an emotional component in developing positive or negative attitudes, and a reaction through being motivated to select and buy. Maria Carolina (2011) Her research work addresses determinants of housing consumer behavior. This Brazilian work presents the development of a methodology which combines the examination of housing attributes and behavioral attitudes about residential mobility, choice and satisfaction. A theoretical revision is made initially considering these three processes of architecture and socio-demographic literature. The research method is the multiple case studies. The data had been collected since 2004. About 80 studies had been carried. A general vision of the study is presented, with description of the sources of the data. Presenting one of the cases, the work shows how the progression of households through the stock is influenced by the circumstances that prompt moves, economic resources and family life cycle stage. For analysis of this concept, a representative project was developed, considering the notion of parallelism between professional and housing careers, life cycle events and family financial aspects. The end results might be used by developers authorities assessing the impacts of environmental characteristics as dissatisfaction causes of residential mobility. The knowledge of determinants of housing behavior allows information about the significance of relationships between the environment and human actions, which might be 9
used by planning authorities in the definition of better subsequent built environments. Two aspects are essential in the present work: conceptual and methodological. The first concerns to the work‟s goal in uniting the concepts searched in the several literatures that discuss the consumer behavior theme, adapting them to an unique and enclosing notion and involving the theme. The second concerns to the goal of proposing a methodology able to investigate the consumer behavior from this enclosing conceptual notion. The discussion around the behavior of the habitation demand frequently is restricted to the works that evaluate the residential satisfaction, generally backed in the Post-Occupational Evaluation methodology, already broadly spread in the national scenery. However the demand behavior also involves other aspects, besides the residential satisfaction. It becomes necessary to consider the behavior in a systemic manner, relating needs, preferences, motivations that generate the search for a new house and the characteristics that define the family‟s social economic profile. Ebrahim Variawa (2010) Marketers increasingly face challenges in trying to understand the decision-making processes and behaviors of those consumers located at the Bottom of the Pyramid (BOP). It has been proven that 73% of fast-moving consumer goods (FMCG) purchases are made at the point-of sale, and product packaging has been found to play a strategic role in seven of the ten in-store purchase decision criteria. Packaging is, therefore, an important basis through which companies can differentiate products from the plethora of competing brands. On average, big retailers carry 50 000 items and the typical shopper passes 300 items per minute. The packaging must, therefore, perform many of the sales tasks, making an overall favourable brand impression and experience. The research has attempted to understand the constructs of packaging and brand experience as purchasing decision criteria for FMCG products. The researcher administered 250 surveys with low-income consumers in the Star Hyper supermarket in the mining town of Carlton ville. The findings demonstrated how low-income consumers have an appreciation of all product packaging as they often re-use it once the product is consumed. Furthermore, lower income consumers enjoy a greater brand experience with 'premium' product brands when compared to their brand experience levels with what they perceive to be 'cheaper' brand products. Even though a statistical weak relationship between product packaging and brand experience was found, the qualitative findings support the notion of a strong relationship as lower income consumers
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gain more value/greater brand experience not just out of consuming 'premium' brand products, but also from the use of the packaging for other needs afterwards. Feng Xu (2010) In New Zealand, the housing market is composed of distinct communities with different roles. These are the buyers, the sellers, and intermediaries between buyers and sellers of real estate. Real estate agents and brokers, as a third party of housing deals, are a very important intermediary in the New Zealand real estate industry. On the one hand, they help people to sell the property professionally and efficiently; on the other hand, they help people find the optimal home for living or property investment and consolidate loans. According to Gilbert (2002), less than 0.5% of all property sales are made privately, and around 80% of properties placed on private sale are transferred to real estate agents within three months. The real estate industry in New Zealand is now a multi-cultural enterprise composed of diverse ethnicities, due to New Zealand‟s immigration policy. In the last ten years, the inflow from „non-traditional countries of origin‟ has particularly increased the number of new settlers from Asian countries (Bascand, 2009, Aug 14). Increasing diversity means that all parties must come to grips with the challenge of understanding the housing needs of people from different cultures. The Chinese are the largest Asian ethnic group in New Zealand and have been so since the nineteenth century (Bell, 2001). As a result, as confirmed by local media, there is a large intra-Chinese housing trade market within the Auckland Chinese community. As the housing demand of the Chinese community is a valuable resource to support the New Zealand real estate industry, it is significant to have a timely research on the marketing strategies used in that specified housing market. Ultimately, the stimulus of Chinese buyers in the housing market can enhance a prosperous New Zealand economy. This thesis examines two groups of real estate intermediaries - Chinese and nonChinese – and investigates the role of these people in New Zealand, particularly as it concerns the principles, behaviours, relationships and practices of Chinese and non-Chinese real estate personnel vis-à-vis their clients and the mortgage market. In this study, the research domain 5 of the housing market we are focusing on is the Auckland region, which includes Auckland City, Manukau City, North Shore City, Waitakere City, Franklin District, Papakura District, Rodney District, Waiheke and Hauraki Gulf Islands (Housing New Zealand Corporation, 2005). However, the four main cities, as the metropolitan area, are the main research regions of this study.
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Melika Husić-Mehmedović (2010) Real estate property is defined as a financial asset that brings interest, benefits and encumbrances inherent in the ownership of the land and all improvements that are permanently related to it. Real estate market is recognized as a market of the constant rising value, independent of the particular country development. During last 20 years Bosnia and Herzegovina (further B&H) went through the large transitional changes. Challenges facing today's real estate market in B&H have never been so difficult. Real estate ownership is an unobtainable goal for most of the employed young people. Main topic of this paper is decision making process of the new emerging segment called young professionals in relations to real estate market and understanding their buying behavior. Combining quantitative and qualitative methods, it analysis the real estate market in Bosnia and Herzegovina in the period directly influenced by the recent economic crisis. This research is testing the influence of the specific reference groups (family, friends and experts) of the young professionals (up to 35), during their real estate purchase. This kind of decision making is a complex process, but still the most important part of the real estate purchase. Research has shoved that family and friends have the main influence in the process, however their importance varies upon their education/age level, family life cycle stage, level of self esteem and their life style. Findings of the research have great managerial implications in order to help sellers to develop segment oriented offerings and selling strategy. Brian A. Glanville (2006) The rapid changes of the last decade, in both real estate markets and the global economy, have created an interconnected world where barriers of time and geography have fallen away. Real estate‟s growing place in investment portfolios demands that any professional dealing with real property be prepared to play on this new field. International activities offer the Appraisal Institute a strong potential for growth. Such activities also offer Appraisal Institute members the opportunity to learn firsthand how to do busi- ness abroad and reap the financial benefit of providing services for multinational clients. Building on its history of leadership in developing and disseminating real estate valuation theory, the Appraisal Institute is in a position to see that this theory is transferred in practical ways around the world. The organization‟s core competencies are in high demand by the international community. By taking the lead to ensure the systematic development of markets around the world, the organization can realize growth in both membership and business opportunities for all members.
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Jonathan Kohn (2007) The US economy experienced excessive demand for housing for over a decade, causing a housing boom. Consumers went on a spending spree driven by higher and higher, real and perceived home equity values, as well as equity market increases. In the US market, “bigger is better” or “as much as one can afford” became the mentality of home buyers. In addition, consumers were driven to buy houses now to avoid future higher prices. Interest rates were generally held to historic lows from 1990 to about 2007. For a long time, the Federal Reserve was praised for helping the financial markets sustain their roles in the housing markets. Since the housing market crash, beginning about 2006, the Federal Reserve has been blamed for the housing crisis. This research examined the housing market boom to determine what factors led to this economic situation.
(KEMENY, 1998) Comparative housing research has become a major ® eld of investigation in the last two decades, and it is now possible to discern distinct approaches. In this paper we present an overview of the literature, distinguishing between three dominant perspectives. At one extreme are particularistic approaches which are conceptually unexplicated and highly empirical and in which each country is seen as unique. At the other extreme are universalistic approaches in which all countries are seen as being subjected to the same overriding imperatives, whether this is „the logic of industrialism‟, capitalist market failures, the structural drive to increasingly comprehensive welfare states or its opposite, the privatisation and recommodi® cation of welfare. In between these two extremes are studies which attempt to develop what might be called „theories of the middle range‟ and to discern typologies of housing systems. (PUGH, 2001) In terms of welfare, development, and overall distributional impact, the study of whole sector housing development is more signiŽ cant than attention to parts of a housing system. Housing policy development is increasingly taking the more compre- hensive approach. The Ž rst phases of international housing policy, 1972–83, represented in sites and services (and related in situ slum upgrading) projects, could never become completely effective. These approaches had only fragmentary relationships to general land policies, to the development of housing Ž nance systems, and to the broader economic, social and institutional conditions for enhancing the qualities and supplies of housing. In due time the theoretical and practical limitations became apparent and various international aid agencies, 13
including the World Bank, adopted broader, more sophisticated thinking in housing, leading to a quest for whole sector housing develop- ment. But in the late 1990s, within managerial reforms in the World Bank, the specialist housing section was disbanded and the staff dispersed to other sections. This paper provides an historical explanation for the change, along with critical commentaries on the potential dilemmas with the modern, more comprehensive approaches. It is argued that policy and research agendas should be more evidently based upon understanding of the developmental dialectic between the economic, the social and the political. The developmental welfare of such a dialectic has authority and legitimacy from several Nobel prize winners in the 1990s. This paper re•ects upon the relevance of their theoretical contributions. (Clapham, 1996) The intention of this review is to examine the nature and dynamics of housing systems by reviewing research on the relationship be- tween housing markets and the market econ- omy of which they are part. The example taken here is Britain, which, although usually categorised as somewhere between a market and a welfare system, has under continuous right-wing governments since 1979, moved far closer to the ideal type market housing system in the last decade. However, this move has been problematic in many respects and an analysis of the impact of the changes shows many problems associated with a mar- ket approach. Many of these problems relate to the speci® c situation in Britain, but others may reject the more general problems which are inherent in market systems.
14
CHAPTER 3 : Research Methodology
3.1.1 Research title „Buying behavior and consumer preferences in the Residential Real Estate industry in Delhi NCR region‟.
3.1.2 Objectives of Study To study the set of factors that a consumer takes into consideration while making a decision of buying a home in Delhi NCR Region. To find out the effect of brand preference on the buying behaviour of the consumer. Buying preferences of the consumers for the type of property. Preferences of consumers for the type of payment plan.
3.1.3 Hypothesis H0: There is not a significant relationship between the type of property preferred and Income level of the person .
HA: There is a significant relationship between the type of property preferred and Income level of the person. H1: There is not a significant relationship between type of payment plan preferred and income level of the customer. H2: There is a significant relationship between type of payment plan preferred and income level of the customer.
3.4 Research Design The methodological approach to this study is descriptive, because the researcher has attempted to identify and explain variables that exist in a given situation and to describe the relationship that exists between these variables. 15
To study the impact of consumer perception, the researcher first carried out a Descriptive analysis with the help of Questionnaire over 120 respondents. Then to understand the different perception of people of different areas the researcher has conducted personal interviews of people from different demographic profiles in order to distinguish among their thoughts, view towards the Real estate Industry in Delhi/NCR region.
3.5 Questionnaire Design A structured questionnaire was prepared to get the most efficient and accurate results from the survey. The research question specifies the information the decision making needs.
3.6 Data Collection Both Primary and Secondary data was collected during the project.
Primary data was collected through questionnaire filling and interviews. The questionnaire is designed in structured form and most of the questions were multiple choice questions. And some open ended questions were also included in the questionnaire. Respondents were asked to complete 5 point Likert scale in some questions. Secondary data: The major source of secondary data is:
Internet
Product‟s websites
Articles from marketing magazines
Research papers
Journals
3.7 Sampling Design There are four steps involve in the sampling design process. These steps are closely interrelated and relevant to all aspects of the marketing research project. These steps are as follows:
16
3.7.1 Define the target population The target population is the collection of elements or objects that possess the information sought by the researchers and about which the inferences are to be made. The target population represents the Delhi/NCR regions. The people were from different professional backgrounds.
3.7.2 Select a sampling technique The sampling technique used in this project is Convenient Sampling Technique. It is because equal opportunity should be provided to every kind of people in order to obtain better result to understand the consumer perception. The selection of sampling units is left primarily to the interviewer. Often, respondents are selected because they happen to be on right place at the right time.
3.7.3 Determine of the sample size Sample size refers to the number of units or respondents to be included in the study. One of the important considerations in the sample size determination is the sample size used in the similar studies and the resource constraints. In the study, sample size is influenced by the target population. So, sample size of 120 customers, to obtain better results for analyzing the perception of consumers.
3.8 Instruments Used for analysis The basic instrument used in the research is the structured questionnaire with both open and close ended questions. Most of the questions are Multiple choice and options are provided. It is kept so in order to maximize the response of the Respondents.
17
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 4.1: Number of People who are permanent residents of Delhi Ncr.
Table 4.1: Are you a permanent resident of Delhi NCR region? Cumulative Frequency Valid
Percent
Valid Percent
Percent
Yes
103
85.8
85.8
85.8
No
17
14.2
14.2
100.0
120
100.0
100.0
Total
Figure 4.1: Are you a permanent resident of Delhi NCR region?
Interpretation: The above Figure 4.1 suggests that almost 5/6th of the respondents are permanent residents of Delhi NCR. That will help the results to be more efficient and accurate.
18
4.2: Number of people who have bought a property in Delhi NCR
Table 4.2: Have you ever bought any property in Delhi NCR? Cumulative Frequency Valid
Percent
Valid Percent
Percent
Yes
109
90.8
90.8
90.8
No
11
9.2
9.2
100.0
120
100.0
100.0
Total
Figure4. 1 : Have you ever bought any property in Delhi NCR?
Interpretation: In the above pie chart it can be seen that 90.83% of the total respondents have actually bought a property in Delhi and NCR region. 19
4.3 : Number of years respondents have been living in Delhi Ncr.
Table 4.3 : For how many years have you been living here? Cumulative Frequency Valid
Percent
Valid Percent
Percent
<5 years
18
15.0
15.0
15.0
5-10 years
18
15.0
15.0
30.0
10-25 years
62
51.7
51.7
81.7
>25 years
22
18.3
18.3
100.0
120
100.0
100.0
Total
Figure 4. 2: For how many years have you been living here?
As seen in the above pie chart, almost half of the Respondents have been staying in Delhi Ncr for last 10-25 years, on the second place are the ones living in Delhi for more than 25 years in Delhi Ncr. 20
4.4 : Ranking of localities in order of preference. Table : 4.4a). : Compiled ranking of localities(NCR) in order of preference. Rank
Rank
Rank
Rank
Rank
1
2
3
4
5
Faridabad
11
6
33
33
37
Noida
36
37
19
11
17
Gurgaon
41
28
17
20
14
5
34
28
31
22
33
15
17
25
30
Greater Noida Ghaziabad
Figure 3.4 a): Compiled ranking of localities(NCR) in order of preference.
As seen above, Gurgaon has received maximum number 1st Rank by the respondents. With a high growth rate and more and more companies are opening their offices in gurgaon. People tend to prefer gurgaon as its close to their workplace and there is a good availability of nearby markets, malls, cinema halls , 5 star Hotels which make gurgaon a perfect choice for property buyers. Noida has got maximum number of Rank 2 as its growing very rapidly and most of the big realtors are eyeing Noida as a profitable area to invest in. Faridabad has been given maximum of 3rd, 4th and 5th Ranking, closely followed by Greater Noida for the 3rd and 4th Rank . This may be a result of steady developmental growth in Faridabad and Greater noida these days. Companies are also moving their offices to these localities as property is comparably cheap as compared to Gurgaon and Noida. 21
Tabel 4.4b) Is there any specific reason for giving that locality the highest ranking?
Frequency Valid
Percent
Valid Percent
Cumulative Percent
Yes
35
29.2
29.2
29.2
No
85
70.8
70.8
100.0
120
100.0
100.0
Total
Figure 4.4b) : Is there any specific reason for giving that locality the highest ranking?
Almost one third of the Respondents have a specific reason for giving the locality the highest rating in the last part. The main reasons were mainly composed of responses such as good locality, close to the workplace, scope of high capital appreciation, good development rate, availability of markets, malls etc affordable price of properties etc.
22
4.5: Number of Respondents who have bought properties in Delhi Ncr for the purpose of Investment.
Table 4.5: Have you ever bought a residential property in the Delhi NCR region for the purpose of Investment?
Frequency Valid
Percent
Valid Percent
Cumulative Percent
Yes
79
65.8
65.8
65.8
No
41
34.2
34.2
100.0
120
100.0
100.0
Total
Figure 4.5 : Have you ever bought a residential property in the Delhi NCR region for the purpose of Investment?
The above pie chart shows that almost 66% of the Respondents have bought properties for the purpose of Investment as Real estate is considered a good option to invest in and it gives good returns in terms of capital appreciation and can also serve the purpose of a regular Income by Renting and leasing. 23
4.6 Type of Residential Property Preferred.
Table No. 4.6a) : What type of residential property do you prefer? Frequency Valid
Percent
Valid Percent
Cumulative Percent
Residential Plot
12
10.0
10.0
10.0
Independent House
21
17.5
17.5
27.5
Multi-storey apartment
33
27.5
27.5
55.0
Builder floor
27
22.5
22.5
77.5
villa
12
10.0
10.0
87.5
Other
15
12.5
12.5
100.0
Total
120
100.0
100.0
Figure 4.6a) : What type of residential property do you prefer?
In the above figure, its easily seen that with 27.5% multi-storey apartments score the maximum in terms of preference for the type of property closely followed by Builder floor with 22.5%. Families these days have a desire to buy a floor so that the whole family could live together on the same floor as it‟s hard to move up and down in case of properties with multiple floors. Also, Independent houses and villas are comparably pricier as compared to multi-storey apartments and builder floors. 24
Table 4.6b) Will your preference in the last question change if the property is being bought for investment purpose? Cumulative Frequency Valid
Percent
Valid Percent
Percent
Yes
71
59.2
59.2
59.2
No
49
40.8
40.8
100.0
120
100.0
100.0
Total
Figure 4: Will your preference in the last question change if the property is being bought for investment purpose?
Surprisingly, it‟s seen in the above data that almost 60% of the total respondents would change their Preference for type of property if the property is being bought for investment purpose.
25
4.6c) If yes , What will be your preference in that case?
For Investment
Residential
Independent
Plot
house 28.14
Multi storey 22.5
25.53
Builder floor 14.08
Villa others 4.2
5.6
Figure 4.6c ) : If yes, what will be your preference in that case?
In case of buying a property for Investment, a drastic change can be seen in the above data where Residential plot gets the maximum score with 28.14%, closely followed by multistorey apartments with 25.5% and Independent house with 22.5%.
26
Data Comparison Table 4.6d
For living For Investment
Residential
Independent
Multi
Plot
house
storey
Builder floor
Villa others
10
17.5
27.5
22.5
10
12.5
28.14
22.5
25.53
14.08
4.2
5.6
Figure 4.6 d) : Data Comparison
In the above Bar graph, it can be seen that the preference for buying a residential plot has jumped from 10%(Living) to 27.5%(Investment) . Preference for buying and Independent house have also moved higher from 17.5% to 22.5 %, whereas multi-storey apartments have gone down a little from 27% to 25.2% .
27
4.7 Preferred Payment Plan. Table 4.8: For buying a property , what payment plan do you prefer ? Cumulative Frequency Valid
Percent
Valid Percent
Percent
Down payment Plan
23
19.2
19.2
19.2
Flexi Plan
40
33.3
33.3
52.5
Construction linked plan
57
47.5
47.5
100.0
120
100.0
100.0
Total
Figure 4.7): For buying a property , what payment plan do you prefer ?
Its clearly seen above that almost half of the Respondents prefer to buy a property with the construction linked plan where the payment is made in instalments according to the progress in construction of the property. 33.3% People prefer the flexi plan which is a mix of construction linked and down payment plan. Down payment plan gets the lowest preference with 19.1%. 28
4.8 : Respondent‟s awareness of Big real estate developers. Table 4.8 Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc. ? Cumulative Frequency Valid
Percent
Valid Percent
Percent
Yes
104
86.7
86.7
86.7
No
16
13.3
13.3
100.0
120
100.0
100.0
Total
Figure4.8: Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc.?
It‟s seen above that a very high percentage (86.67%) of Respondents have heard about the renowned real estate developers such as DLF, Unitech ,Amrapali etc.
29
Table 4.9 : Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price? Cumulative Frequency Valid
Percent
Valid Percent
Percent
Yes
69
57.5
57.5
57.5
No
51
42.5
42.5
100.0
120
100.0
100.0
Total
Figure4.9 : Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price?
From the above data it can be interpreted that people do have a brand preference in the real estate Industry as more than half i.e. 57.5% Respondents are ready to pay an additional cost to buy a property from a renowned real estate company such as DLF, Unitech etc.
30
4.10 : Real Estate Company Preference Table 4.10 : Please tick the Real estate company‟s name you would prefer buying a Property from. Cumulative Frequency Valid
Percent
Valid Percent
Percent
DLF
42
35.0
35.0
35.0
Unitech
23
19.2
19.2
54.2
Supertech
18
15.0
15.0
69.2
Amrapali
5
4.2
4.2
73.3
BPTP
11
9.2
9.2
82.5
Emaar MGF
11
9.2
9.2
91.7
Ansal API
10
8.3
8.3
100.0
120
100.0
100.0
Total
Figure 4.10 : Please tick the Real estate company‟s name you would prefer buying a Property from.
Dlf has got the maximum preference for buying a property from with 35% i.e more than 1/3rd of the sample,followed by unitech with 19.17% and Supertech with 15% preference.
31
Table 4.11 Please tick the options that you take into consideration while choosing a real estate company to buy a property from :-
Frequency Valid
Percent
Valid Percent
Cumulative Percent
Market Reliability
48
40.0
40.0
40.0
Financial Stability
23
19.2
19.2
59.2
6
5.0
5.0
64.2
Customer Service
17
14.2
14.2
78.3
Earlier completed Projects
15
12.5
12.5
90.8
Any other
11
9.2
9.2
100.0
120
100.0
100.0
Word of Mouth
Total
Figure 4.11: Please tick the options that you take into consideration while choosing a real estate company to buy a property from.
Most people choose market reliability(40%) as the main consideration before buying a property from a real estate company followed by , financial stability with 19.17% , customer service with 14.17% and success of earlier completed projects with 12.5% . 32
4.12: Ratings of key factors while making buying decision Table 4.12a) : Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- a)Price Frequency Valid
Percent
Valid Percent
Cumulative Percent
Least Important
17
14.2
14.2
14.2
Somewhat Important
22
18.3
18.3
32.5
Neutral
11
9.2
9.2
41.7
Important
28
23.3
23.3
65.0
Most Important
42
35.0
35.0
100.0
120
100.0
100.0
Total
Figure 4.12a): Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- a)Price
Almost 35% respondents have given Price the most Important rating, that means price is the most crucial variable which highly affects the buying decision of the buyer. 33
Table
4.13b : Please rate the following key factors on a scale of 1 to 5 that you take into
consideration while making a buying decision for a residential property:- b)Privacy
Cumulative Frequency Valid
Percent
Valid Percent
Percent
Least Important
16
13.3
13.3
13.3
Somewhat Important
30
25.0
25.0
38.3
Neutral
23
19.2
19.2
57.5
Important
33
27.5
27.5
85.0
Most Important
18
15.0
15.0
100.0
120
100.0
100.0
Total
Figure 4.12 b) Privacy
Privacy gets the maximum rating as Important with 27.5%.
34
Table 4.12 c) : Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- c)Location Cumulative Frequency Valid
Percent
Valid Percent
Percent
Least Important
22
18.3
18.3
18.3
Somewhat Important
23
19.2
19.2
37.5
Neutral
11
9.2
9.2
46.7
Important
40
33.3
33.3
80.0
Most Important
24
20.0
20.0
100.0
120
100.0
100.0
Total
Figure 5 : c)
Location
Location also gets the maximum rating as Important with 33.33% , followed by most Important with 20% . 35
Table 4.12 d :Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- d)Neighbourhood Cumulative Frequency Valid
Percent
Valid Percent
Percent
Least Important
28
23.3
23.3
23.3
Somewhat Important
17
14.2
14.2
37.5
Neutral
35
29.2
29.2
66.7
Important
23
19.2
19.2
85.8
Most Important
17
14.2
14.2
100.0
120
100.0
100.0
Total
Figure 4.12 d) : Neighborhood
36
Table 4.12e :Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- e)Area/size of the property Cumulative Frequency Valid
Percent
Valid Percent
Percent
Least Important
40
33.3
33.3
33.3
Somewhat Important
16
13.3
13.3
46.7
Neutral
10
8.3
8.3
55.0
Important
36
30.0
30.0
85.0
Most Important
18
15.0
15.0
100.0
120
100.0
100.0
Total
Figure 4.12e) : Area/size of the property
Area/size of a property gets maximum rating as least important with 33.33%. 37
Table 4.13 f) : Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- f) Parking facility Cumulative Frequency Valid
Percent
Valid Percent
Percent
Least Important
23
19.2
19.2
19.2
Somewhat Important
29
24.2
24.2
43.3
Neutral
22
18.3
18.3
61.7
Important
29
24.2
24.2
85.8
Most Important
17
14.2
14.2
100.0
120
100.0
100.0
Total
Figure 4.12 f) : Parking facility
Parking facility gets equal ratings of Somewhat important and important with 24.17%. 38
Figure 4.13 g) : Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- g) Proximity to workplace Cumulative Frequency Valid
Percent
Valid Percent
Percent
Least Important
17
14.2
14.2
14.2
Somewhat Important
22
18.3
18.3
32.5
Neutral
24
20.0
20.0
52.5
Important
22
18.3
18.3
70.8
Most Important
35
29.2
29.2
100.0
120
100.0
100.0
Total
Figure 4.12 g) : Proximity to workplace
Proximity to workplace also gets the maximum rating of most important with 29.17%.
39
Table 4.13 h) :Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property:- h) Interiors Cumulative Frequency Valid
Percent
Valid Percent
Percent
Least Important
17
14.2
14.2
14.2
Somewhat Important
41
34.2
34.2
48.3
Neutral
23
19.2
19.2
67.5
Important
28
23.3
23.3
90.8
Most Important
11
9.2
9.2
100.0
120
100.0
100.0
Total
Figure 4.12 h): Interiors
Interiors get maximum rating as somewhat important with 28.5%.
40
4.13 Factors Ratings Table No.4.13 Least
area/size of Price
proximity to
privacy location neighbourhood property
parking workplace
interiors
17
16
22
28
40
23
17
17
22
30
23
17
16
29
22
41
Neutral
11
23
11
35
10
22
24
23
Important
28
33
40
23
36
29
22
28
Most
42
18
24
17
18
17
35
11
Important Somewhat Important
Important
Figure 4.13: Factors Ratings
Least important is the area of the property
Somewhat important are the interiors of the property
Respondents are neutral to the neighbourhood
Important is the location
Most important is the price of the property. 41
4.14: Important sources of Information
Table 4.14 a) : Please mark the options from which you take help while making a buying decision? a)Newspapers
Cumulative Frequency Valid
Valid Percent
Percent
check
74
61.2
61.7
61.7
unchek
46
38.0
38.3
100.0
120
99.2
100.0
1
.8
121
100.0
Total Missing
Percent
System
Total
b)Television
Table 4.14 b) Please mark the options from which you take help while making a buying decision? b)Television Cumulative Frequency Valid
Total
Valid Percent
Percent
check
68
56.2
56.7
56.7
unchek
52
43.0
43.3
100.0
120
99.2
100.0
1
.8
121
100.0
Total Missing
Percent
System
42
c)Radio
Table 4.14 c Please mark the options from which you take help while making a buying decision? c)Radio Cumulative Frequency Valid
Valid Percent
Percent
check
69
57.0
57.5
57.5
unchek
51
42.1
42.5
100.0
120
99.2
100.0
1
.8
121
100.0
Total Missing
Percent
System
Total
d) Property sites
Table 4.14 d : Please mark the options from which you take help while making a buying decision? d)Property sites(Makaan.com,99 acres.com) Cumulative Frequency Valid
Total
Valid Percent
Percent
Check
79
65.3
65.8
65.8
Unchek
41
33.9
34.2
100.0
120
99.2
100.0
1
.8
121
100.0
Total Missing
Percent
System
43
e) Developers sites Table 4.14 e: Please mark the options from which you take help while making a buying decision? e) Developer's Site Cumulative Frequency Valid
Valid Percent
Percent
check
78
64.5
65.0
65.0
unchek
42
34.7
35.0
100.0
120
99.2
100.0
1
.8
121
100.0
Total Missing
Percent
System
Total
f) Perople‟s references
Table 4.14 f : Please mark the options from which you take help while making a buying decision? f) People's References Cumulative Frequency Valid
Total
Valid Percent
Percent
check
62
51.2
51.7
51.7
unchek
58
47.9
48.3
100.0
120
99.2
100.0
1
.8
121
100.0
Total Missing
Percent
System
44
g) Others
Table 4.14 g : Please mark the options from which you take help while making a buying decision? g) Others Cumulative Frequency Valid
Missing Total
Percent
Valid Percent
Percent
check
20
16.5
16.7
16.7
unchek
100
82.6
83.3
100.0
Total
120
99.2
100.0
1
.8
121
100.0
System
45
Table 4.14 h): Complied Frequency of Responses
Newspapers
Television
74
68
Radio
Property
Developer'
People's
Other
sites
s site
references
s
Source of Information
69
79
78
62
20
Figure 4.14 h): Source of Information.
From the compiled data for the sources of information , it can be seen that Property sites(79) are the most preferred source of information , very closely followed by developer‟s site(78) and newspaper (74) .
46
4.15: Income Level of the Respondent. Table 4.15 : What is your annual Income? Cumulative Frequency Valid
Percent
Valid Percent
Percent
<10 Lakhs
30
25.0
25.0
25.0
10-25 lakhs
35
29.2
29.2
54.2
25-50 lakhs
24
20.0
20.0
74.2
>50 lakhs
31
25.8
25.8
100.0
120
100.0
100.0
Total
Figure 4.15 : Income level
29.17% of the total respondents are from 10-25 lakhs annual income level group , closely followed by 25-50 lakhs income group . 47
Crosstabs: Crosstab Count 4.16: Relationship between the income level of the respondent and payment
plan preferred. Table No: 4.16a)
What is your annual Income? <10 Lakhs
For buying a property , what payment plan do you prefer ?
10-25 lakhs
25-50 lakhs
>50 lakhs
Total
Down payment Plan
5
1
2
15
23
Flexi Plan
9
15
12
4
40
16
19
10
12
57
30
35
24
31
120
Construction linked plan Total
Figure 4.16a) : Relationship between the income level of the respondent and payment plan preferred .
Interpretation: In the above table 4.16 we can see that Respondents who are having an annual income of less than 25 lakhs are likely to choose Construction linked payment plan, whereas in case of Respondents in the 25-50 lakhs annual income level are likely to go for Flexi payment plan and Respondents with more than 50 lakhs annual income preferred the Down payment Plan. 48
Table 4.16b) Chi-Square Tests Asymp. Sig. (2Value
df
sided)
Pearson Chi-Square
12.795a
6
.046
Likelihood Ratio
15.254
6
.018
3.437
1
.064
Linear-by-Linear Association N of Valid Cases
21
a. 12 cells (100.0%) have expected count less than 5. The minimum expected count is .76.
Significance level is less than .05 that means there is a significant relationship between the income level of the respondent and payment plan preferred. So, the null hypothesis is rejected as P-value is less than .05
49
4.17a) : For buying a property , what payment plan do you prefer ? * Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price?
Table 4.17a) Crosstab
Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price? Yes For buying a property , what payment plan do you prefer ?
Down payment Plan
No
Total
6
17
23
Flexi Plan
17
23
40
Construction linked plan
46
11
57
69
51
120
Total
The above data clearly suggests that people who prefer the Down payment plan are likely not to pay additional cost to buy a property from a renowned real estate company (DLF, Unitech etc) and same is the case with flexi plan but people preferring the construction linked plan are likely to go for a brand and ready to pay any additional cost for buying the property.
50
Chi-Square Tests Asymp. Sig. (2-
Table No 4.17b) Value
df
sided)
Pearson Chi-Square
25.526a
2
.000
Likelihood Ratio
26.775
2
.000
Linear-by-Linear Association
24.117
1
.000
N of Valid Cases
120
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 9.78.
Significance level is less than .05 that means there is a significant relationship between the Brand preference of the respondent and payment plan preferred .
51
4.18 Please mark the options from which you take help while making a buying decision? a)Television * What is your annual Income?
Crosstab Count
Table No . 4.18a)
What is your annual Income? <10 Lakhs
Please mark the options from which you take help while
10-25 lakhs
25-50 lakhs
>50 lakhs
Total
check
24
20
14
10
68
unchek
6
15
10
21
52
30
35
24
31
120
making a buying decision? b)Television Total
The above data can be interpreted as the people who use Television as the source of gaining information regarding the real estate industry are from less than 10 lakhs annual income level group.
Chi-Square Tests Asymp. Sig. (2Value
df
sided)
Pearson Chi-Square
14.203a
3
.003
Likelihood Ratio
14.801
3
.002
Linear-by-Linear Association
12.560
1
.000
N of Valid Cases
120
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 10.40.
Significance level is less than .05 that means there is a significant relationship between the Television-Source of Information and Income level of the person . 52
4.18) Please mark the options from which you take help while making a buying decision? b)Property sites(Makaan.com,99 acres.com) * What is your annual Income?
Crosstab Count
Table No 4.18b)
What is your annual Income? <10 Lakhs
Please mark the options from which you take help while
10-25 lakhs
25-50 lakhs
>50 lakhs
Total
check
23
28
7
21
79
unchek
7
7
17
10
41
30
35
24
31
120
making a buying decision? d)Property sites(Makaan.com,99 acres.com) Total
The above data can be interpreted as the people who use Property sites as the source of gaining information regarding the real estate industry are from 10-25 lakhs annual income level group.
Chi-Square Tests Asymp. Sig. (2Value
df
sided)
Pearson Chi-Square
19.084a
3
.000
Likelihood Ratio
18.528
3
.000
3.428
1
.064
Linear-by-Linear Association N of Valid Cases
120
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 8.20.
Significance level is less than .05 that means there is a significant relationship between the Property sites-Source of Information and Income level of the person . 53
4.18c) Please mark the options from which you take help while making a buying decision? c) Developer's Site * What is your annual Income?
Crosstab Count
Table No. 4.18c)
What is your annual Income? <10 Lakhs
Please mark the options from which you take help while
10-25 lakhs
25-50 lakhs
>50 lakhs
Total
check
25
23
11
19
78
unchek
5
12
13
12
42
30
35
24
31
120
making a buying decision? e) Developer's Site Total
The above data can be interpreted as the people who use Developer‟s sites as the source of gaining information regarding the real estate industry are from less than 10 lakhs annual income level group.
Chi-Square Tests Asymp. Sig. (2Value
df
sided)
Pearson Chi-Square
8.503a
3
.037
Likelihood Ratio
8.865
3
.031
Linear-by-Linear Association
4.413
1
.036
N of Valid Cases
120
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 8.40.
Significance level is less than .05 that means there is a significant relationship between the Developer‟s sites-Source of Information and Income level of the person . 54
4.18d) Please mark the options from which you take help while making a buying decision? d) People's References * What is your annual Income?
Crosstab Count What is your annual Income?
Table No 4.18d) Please mark the options from which you take help while
<10 Lakhs
10-25 lakhs
25-50 lakhs
>50 lakhs
Total
check
19
15
17
11
62
unchek
11
20
7
20
58
30
35
24
31
120
making a buying decision? f) People's References Total
The above data can be interpreted as the people who use People‟s references as the source of gaining information regarding the real estate industry are from less than 10 lakhs annual income level group.
Chi-Square Tests Asymp. Sig. (2Value
df
sided)
Pearson Chi-Square
9.504a
3
.023
Likelihood Ratio
9.690
3
.021
Linear-by-Linear Association
2.087
1
.149
N of Valid Cases
120
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 11.60.
55
4.19 What type of residential property do you prefer? * What is your annual Income? Cross tabulation Table no 4.19a) What is your annual Income? <10 Lakhs What type of residential property do you prefer?
Total
10-25 lakhs
25-50 lakhs
>50 lakhs
Total
Residential Plot
5
5
0
2
12
Independent House
5
9
3
4
21
Multi-storey apartment
9
9
4
8
33
Builder floor
8
7
6
6
27
villa
3
0
1
11
12
other
0
5
10
0
15
30
35
24
31
120
Significance level is less than .05 that means there is a significant relationship between the People‟s References-Source of Information and Income level of the person . In the above table, its clearly suggested that people who are in the income level of less than 10 lakhs are likely to prefer Multi-storey apartments , people who are in the income level group of 10-25 lakhs are likely to go for either independent house or multi-storey apartment, in case of people from 25-50 lakhs income level group are likely to go for other type of properties such as serviced apartments or studio apartments , in case of people from more than 50 lakhs income level group are likely to go for buying a villa.
56
Chi-Square Tests Asymp. Sig. (2-
Table No. 4.19b) Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association
df
sided)
a
15
.000
50.223
15
.000
4.921
1
.027
45.338
N of Valid Cases
120
a. 13 cells (54.2%) have expected count less than 5. The minimum expected count is 2.40.
Significance level is less than .05 that means there is a significant relationship between the type of property preferred and Income level of the person. So, the null hypothesis is rejected as P-value is less than .05
57
4.20 Correlations: Table 4.20 : Please rate the following key factors on a scale of 1 to 5 that you take into
consideration while making a buying decision for a residential property. e)Area/ size of a)Price
b)Privacy
c)Location
d)Neighbourhood
the propert
g) f) Parking facility
Please rate the following key
Pearson
factors on a scale of 1 to 5
Correlation Sig. (2-
that you take into
tailed)
consideration while making a
N
1
-.234
.597
**
.313
h)
to
Interiors
workplace
y **
Proximity
**
-.107
.003
.193*
-.104
.010
.000
.001
.245
.978
.035
.256
120
120
120
120
120
120
120
120
-.234**
1
-.042
-.452**
-.113
-.006
-.138
.088
.649
.000
.219
.946
.134
.339
buying decision for a residential property:- a)Price Please rate the following key
Pearson
factors on a scale of 1 to 5
Correlation
that you take into
Sig. (2-
consideration while making a
tailed)
buying decision for a
N
.010
120
120
120
120
120
120
120
120
.597**
-.042
1
.338**
-.318**
-.078
-.084
.055
.000
.649
.000
.000
.398
.363
.551
120
120
120
120
120
120
120
120
.313**
-.452**
.338**
1
-.175
-.546**
-.092
-.155
.001
.000
.000
.056
.000
.315
.091
120
120
120
120
120
120
120
120
-.107
-.113
-.318**
-.175
1
-.164
.228*
-.090
.245
.219
.000
.056
.073
.012
.327
120
120
120
120
120
120
120
residential property:b)Privacy Please rate the following key
Pearson
factors on a scale of 1 to 5
Correlation
that you take into
Sig. (2-
consideration while making a
tailed)
buying decision for a
N
residential property:c)Location Please rate the following key
Pearson
factors on a scale of 1 to 5
Correlation
that you take into
Sig. (2-
consideration while making a
tailed)
buying decision for a
N
residential property:d)Neighbourhood Please rate the following key
Pearson
factors on a scale of 1 to 5
Correlation
that you take into
Sig. (2-
consideration while making a
tailed)
buying decision for a
N
120
residential property:-
58
e)Area/size of the property Please rate the following key
Pearson
factors on a scale of 1 to 5
Correlation
that you take into
Sig. (2-
consideration while making a
tailed)
buying decision for a
N
.003
-.006
-.078
-.546**
-.164
-.024
.356**
.978
.946
.398
.000
.073
.798
.000
120
120
120
120
120
120
120
120
.193*
-.138
-.084
-.092
.228*
-.024
1
-.148
.035
.134
.363
.315
.012
.798
120
120
120
120
120
120
120
120
-.104
.088
.055
-.155
-.090
.356**
-.148
1
.256
.339
.551
.091
.327
.000
.106
120
120
120
120
120
120
120
1
residential property:- f) Parking facility Please rate the following key
Pearson
factors on a scale of 1 to 5
Correlation
that you take into
Sig. (2-
consideration while making a
tailed)
buying decision for a
N
.106
residential property:- g) Proximity to workplace Please rate the following key
Pearson
factors on a scale of 1 to 5
Correlation
that you take into
Sig. (2-
consideration while making a
tailed)
buying decision for a
N
residential property:- h) Interiors **. Correlation is significant at the 0.01 level (2-tailed). *.Correlation is significant at the 0.05 level (2-tailed).
In the above correlation table 4.20, it‟s showing the correlation between various factors affecting the buying decision for a property by a customer. In the first row its clearly seen that Price is having a negative correlation (.010) with privacy (-.234), that means a person rating price as most important factor is likely to rate privacy as least important or somewhat important. It also shows a positive correlation between price and location (.597) that means a person rating price as most important factor would most probably rate location as most important as well, price also has a positive correlation with neighborhood (.313) and a negative correlation with the interiors (-.256). Coming to the second row, the privacy factor has a negative correlation with price (-.234) as discussed earlier. Privacy also shows a very strong negative correlation with neighborhood (.452) that means a person who considers privacy as the most important factor while making a buying decision for a property would consider neighborhood as the least important factor. In the third row, Location shows a very strong positive correlation with price (.597) as already discussed above, it also shows a positive correlation with the neighborhood (.338) , a negative correlation is found in relation with the area or size of the property (-.318) that means that a person preferring a good location would be happy to forgo the big size of the property. 59
120
In the fourth row, Neighborhood is having a very strong positive correlation with the price (.597) as discussed earlier in the first paragraph, it also shows a negative correlation with the privacy factor (-.452) , a positive correlation with location (.338). Neighborhood also has a strong negative correlation with the parking facility (-.546) that means a person who prefers neighborhood of a property is likely to forgo the parking facility. In the fifth row, area/size of the property is having a strong negative correlation with the location factor (-.318) as already discussed above. It also shows a positive correlation with the proximity to workplace (.228). In the sixth row, Parking facility shows a negative correlation with the neighborhood factor (-.546) and also shows a positive correlation with the interiors. A person who considers parking facility as the most important fact is likely to consider the interiors of the house as the most important factor as well. In the seventh row, Proximity to workplace is in positive correlation with the price (as discussed above), it also shows a positive correlation with the area/size of the property (.228) In the last row, Interiors show a positive correlation with the parking facility factor (.356) as already discussed in the paragraph 6.
60
CHAPTER 5 : FINDINGS
1. 85.83% of the respondents are permanent residents of Delhi NCR. 2. 90.83% of the respondents have bought properties in Delhi Ncr region. 3. 51.67% of the respondents have been living in delhi Ncr from 10-25 years, 15% from 5- 10 years and 15% from less than 5 years and 18.33% from more than 25 years. 4. Respondents have given no.1 rank to Gurgaon in terms of preference for buying property, because of the recent developments and high growth rate. Noida have got the second rank as its also reaching to the level of gurgaon , more and more offices are now being operated in noida and big realtors are now eyeing Noida to invest in . 5. 65.83% of the respondents have bought a residential property in the Delhi NCR region for the purpose of Investment. 6. 27.5% of the respondents prefer buying Multi-storey apartments, 22.5% prefer to buy Builder floors, 17.5% of the respondents prefer buying Independent house and rest 32.5% composed of the others. 7. 59.17% of the respondents have said that they would change their preference made in the last question if the property is being bought for Investment purpose. 8. In case of buying property for Investment purpose, 28.14% people would prefer buying Residential plot, 22.5% would prefer Independent house ,25.3% would prefer Multi-storey apartments and rest would go for other type of properties. 9. Residential plot jumped from 10% to 27.5% in case of investment purpose, independent house moved from 17.5% to 22.5%, multi-storey fell from 27% to 25.2%. 10. 47.50% of respondents prefer the construction linked plan, 33.33% prefer flexi plan and 19.17% prefer the Down payment plan. 11. 86.66% of the respondents have heard of Developers such as DLF,Unitech,Amrapali etc. 12. 57.5% Respondents are ready to pay an additional cost to buy a property from a renowned real estate company such as DLF, Unitech etc.
61
13. Dlf has got the maximum preference for buying a property from with 35% i.e more than 1/3rd of the sample, followed by unitech with 19.17% and Supertech with 15% preference. 14. 40% of the respondents choose market reliability while making a buying decision, 19.17% would choose financial stability, customer service 14.17% and earlier completed projects 12.5%. 15. Price is the most important factor while making a buying decision, Interiors is also somewhat important. 16. Property sites(79) are the most preferred source of information , very closely followed by developer‟s site(78) and newspaper (74) . 17. 29.17% of the total respondents are from 10-25 lakhs annual income level group , closely followed by 25-50 lakhs income group. 18. Price is having a negative correlation (.010) with privacy (-.234), It also shows a positive correlation between price and location (.597) also has a positive correlation with neighborhood (.313) and a negative correlation with the interiors (-.256). 19. Privacy shows a very strong correlation with neighborhood (-.452), location shows a positive correlation with the neighborhood (.338), a negative correlation is found in relation with the area or size of the property (-.318). 20. Neighborhood also has a strong negative correlation with the parking facility (-.546). Area/size of the property shows a positive correlation with the proximity to workplace (.228) , Parking facility shows a positive correlation with the interiors
62
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS 6.1Conclusions 1. There is a significant increase in people coming from different states and buying residential properties in Delhi and NCR region as these areas are now the hub of Multinational corps. 2. Gurgaon is the most preferred locality in NCR region in terms of preference of the customers mainly because of high growth rate and more and more companies are opening their offices in gurgaon. People tend to prefer gurgaon as its close to their workplace and there is a good availability of nearby markets, malls, cinema halls , 5 star Hotels which make gurgaon a perfect choice for property buyers. Noida being the second most preferred locality for the customers in terms of buying a house is also climbing the ladder very quickly, the growth rate is rising and most of the big realtors are eyeing Noida as a profitable area to invest in. 3. There is a significant increase in the people who buy properties for the purpose of Investment as as Real estate is considered a good option to invest in and it gives good returns in terms of capital appreciation and can also serve the purpose of a Regular Income by Renting and leasing. 4. Multi-storey Apartments is the most preferred type of property, closely followed by builder floors. Families these days have a desire to buy a floor so that the whole family could live together on the same floor as it‟s hard to move up and down in case of properties with multiple floors. Also, Independent houses and villas are comparably pricier as compared to multi-storey apartments and builder floors which are more affordable. 5. More than half of the people change their preference of property type when the buying decision is for the purpose of Investment. For investment purpose, people tend to prefer residential plots and Multi storey apartments. 6. Construction linked payment plan is the most favourite among the customers because then the customer is having time to arrange funds in between the instalment dates. Flexi plan is the second most preferred payment plan followed by the down payment plan where the whole payment is usually made within 2-3 months. 63
7. Nowadays, People are more aware of Brands such as DLF, Unitech, Amrapali group etc in the Real Estate Industry. Customers are also ready to pay an additional cost to buy from such Renowned real estate developers. 8. DLF is the most preferred real estate company because of its trust and long existence in the Industry. Unitech is second and is closely competing with the DLF. Supertech is third in the list, followed by BPTP , Emaar MGF,Ansal API and Amrapali. 9. Market Reliability of a Company is the most preferred factor that the customers look for before buying a property from it . Financial stability is the second in the list, followed by customer service and earlier completed projects. 10. Price is the most important factor in making the buying decision because in India, customers are very price sensitive and a small variation in price can lead to great changes in demand. Location is also an important factor.
11. As customers are now more educated and have access to the internet, the property sites such as Makaan.com, 99acres.com or magicbricks.com are the most used source to gather information regarding the real estate in Delhi Ncr. The second source of information is the Developer‟s site, followed by newspapers, radio, television etc.
12. There exists a significant relationship between the income level of the customer and the payment plan preferred. Clearly, with the help of the survey we can conclude that the customers having an annual income of more than 50 lacs prefer the Down payment plan as they are having sufficient funds to purchase the property in one go, whereas customers in the less than 10 lacs income level prefer the construction linked plan as the payment is made in instalments.
13. People who prefer the Down payment plan are likely not to pay additional cost to buy a property from a renowned real estate company (DLF, Unitech etc) and same is the case with flexi plan but people preferring the construction linked plan are likely to go for a brand and ready to pay any additional cost for buying the property. 64
14. There is also a significant relationship between the Source of information gathering and the annual Income on the customer. Customers who prefer to gather information through television are from less than 10 lacs annual income group and customers who take help of property sites are from the 10-25 lacs annual income group. 15. People who are in less than 10 lacs annual income level prefer buying multi-storey apartments, people in 25-50 lacs income group prefer buying other type of properties such as serviced apartments and studio apartments and people with more than 50 lacs annual income prefer buying villas and multi-storey apartments. 16. Price is having a negative correlation with privacy that means a person rating price as most important factor is likely to rate privacy as least important or somewhat important. It also shows a positive correlation between price and location that means a person rating price as most important factor would most probably rate location as most important as well, price also has a positive correlation with neighbourhood and a negative correlation with the interiors .
17. The privacy factor has a negative correlation with neighbourhood that means a person who considers privacy as the most important factor while making a buying decision for a property would consider neighborhood as the least important factor.
18. Location shows a positive correlation with the neighbourhood, a negative correlation is found in relation with the area or size of the property that means that a person preferring a good location would be happy to forgo the big size of the property. 19. Neighbourhood has a strong negative correlation with the parking facility that means a person who prefers neighborhood of a property is likely to forgo the parking facility. 20. Area/size of the property is having a positive correlation with the proximity to workplace. Parking Facility shows a positive correlation with the interiors. A person who considers parking facility as the most important fact is likely to consider the interiors of the house as the most important factor as well.
65
6.2 Recommendations
1. As there is a significant increase in people coming from different states and buying residential properties in Delhi and NCR region as these areas are now the hub of Multinational corps. The real estate developers should look to focus on the residential areas near the business parks and corporate offices as people do tend to prefer locations which are in close proximity to their workplace.
2. Gurgaon is the most preferred locality in NCR region in terms of preference of the customers mainly because of high growth rate and more and more companies are opening their offices in Gurgaon. The realtors should mainly focus upon investing in Gurgaon and Noida more as there is a scope for a high property demand.
3. There is a significant increase in the people who buy properties for the purpose of Investment as as Real estate is considered a good option to invest in and it gives good returns in terms of capital appreciation and can also serve the purpose of a Regular Income by Renting and leasing.
4. Multi-storey Apartments is the most preferred type of property, closely followed by builder floors. Families these days have a desire to buy a floor so that the whole family could live together on the same floor as it‟s hard to move up and down in case of properties with multiple floors. The real estate developers should mainly focus upon offering multi-storey apartments and builder floors more than the other types of properties as there is a rising demand for apartments and builder floors.
5. Nowadays, People are more aware of Brands such as DLF, Unitech, Amrapali group etc in the Real Estate Industry. Customers are also ready to pay an additional cost to buy from such Renowned real estate developers. So, the developers can take the advantage of it , by charging an additional cost for their properties and giving better services and security. 66
6. DLF is the most preferred real estate company because of its trust and long existence in the Industry. Unitech is second and is closely competing with the DLF. Supertech is third in the list, followed by BPTP , Emaar MGF,Ansal API and Amrapali. Dlf should look to maintain its domination in the real estate industry and the other developers should look to replace Dlf from the top spot.
7. Market Reliability of a Company is the most preferred factor that the customers look for before buying a property from it. Financial stability is the second in the list, followed by customer service and earlier completed projects. So, the real estate companies should focus on creating a good brand image in the market and should try to reflect as a reliable unit. Companies should also try to maintain their financial stability.
8. Price is the most important factor in making the buying decision because in India, customers are very price sensitive and a small variation in price can lead to great changes in demand. Location is also an important factor.
9. As customers are now more educated and have access to the internet, the property sites such as Makaan.com, 99acres.com or magicbricks.com are the most used source to gather information regarding the real estate in Delhi Ncr. The second source of information is the Developer‟s site, followed by newspapers, radio, television etc. The companies in the real estate industry should maintain good deals with these property sites by offering a good commission, and using different means of advertising on those property sites.
10. Neighbourhood has a strong negative correlation with the parking facility that means a person who prefers neighbourhood of a property is likely to forgo the parking facility. So, the realtors should focus more on offering a good neighbourhood rather than putting high costs for providing the parking facilities.
67
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69
Annexure
Questionnaire
Q1 . Are you a permanent resident of Delhi NCR region? a)
Yes
b) No
Q2 . Have you ever bought any property in Delhi NCR? a)
Yes
b) No
Q3 . For how many years have you been living here? a)
<5 years
b) 5-10 Years
c) 10-25 years
d) >25 years
Q4. Please rank these localities of NCR in order of preference for buying a property:a)
Faridabad
b) Noida c)
Gurgaon
d) Greater Noida e)
Ghaziabad
Is there any specific reason for giving that locality the highest ranking? a)
Yes
b) No
If yes, Please mention it here __________________________________________________. Q5 . Have you ever bought a residential property in the Delhi NCR region for the purpose of Investment? a)
Yes
b) No
Q6. What type of residential property do you prefer? a)
Residential Plot
b) Independent house c)
Multi-storey Apartment
d) Builder Floor e)
Villa
f)
Other
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Q7 . Will your preference in the last question change if the property is being bought for investment purpose? a)
Yes
b) No
If yes, what will be your preference in that case __________________________________________________.
Q8 . For buying a property, what payment plan do you prefer ? a)
Down Payment
b) Flexi plan c)
Construction linked plan
Q9 . Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc. ? a)
Yes
b) No
Q10 . Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is available at a lesser price? a)
Yes
b) No
Q11 . Please tick the Real estate company‟s name you would prefer buying a Property from. a)
DLF
b) Unitech c)
Supertech
d) Amrapali e)
BPTP
f)
Emaar MGF
g) Ansal API
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Q 12 . Please tick the options that you take into consideration while choosing a real estate company to buy a property from :-
a) Market Reliability b) Financial Stability c) Word of mouth d) Customer Service e) Earlier completed projects f) If any other, Please specify____________________________________
Q13 . Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a buying decision for a residential property. (1=Least Important , 5 = Most important) a)
Price
_____
b) Privacy
_____
c)
_____
Location
d) Neighbourhood
_____
e)
Area/size of the property
_____
f)
Parking facility
_____
g) Proximity to workplace
_____
h) Interiors
_____
Q14 . Is there any special feature that hasn‟t been mentioned in the last question and is important to you? ---------------------------------------------------------------------------------Q15 . Please mark the options from which you take help while making a buying decision? a)
Newspapers
b) Television c)
Radio
d) Property sites(Makaan.com,99 acres.com) e)
Developer‟s site
f)
People‟s references
g) Any other
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Q16 . What is your Annual Income? a)
<10 lacs
b) 10-25 lacs
c) 25-50 lacs
d) >50 lacs
Personal Details : Name __________________________________________________________________________ Age
_______ Sex _________
Occupation_____________________________________
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