SUMMER TRAINING PROJECT REPORT ON

CONSUMER BEHAVIOR

For the Partial fulfillment of the requirement

For the award of Bachelor of Business Administration
DEPARTMENT OF e-COMMERCE
KUMAUN UNIVERSITY, NAINITAL

SUBMITTED BY: -

FACULTY GUIDE:-

DARSHAN SHARMA

PRADEEP JOSHI

BBA V SEMESTER
ROLL NO. 1312250002

(ASSISTANT PROFESSOR)

Consumer Behavior

DECLARATION
I, DARSHAN SHARMA, hereby declare that information furnished in this Project,
is my original work containing authentic facts, has worked in Earthcon
Constructions Private Limited, Lucknow, under able guidance and supervision of
Mr. Sanjeev Dixit, General Manager, Earthcon Constructions Private Limited, and
the assistance of Mr. Chaman Kumar, Assistant Professor, Department of eCommerce.
The period for which I was on training was for 6 weeks, starting from 13 July 2015
to 26 August 2015. This Summer Internship report has the requisite standard for
the partial fulfillment the Under Graduation Degree in Management. To be best of
our knowledge no part of this report has been reproduced from any other report
and the contents are based on original research.

Counter Signed by: -

Name of the Student:-

PRADEEP JOSHI

DARSHAN SHARMA
BBA V SEMESTER
Roll No: 1312250001
Enrollment No: KU13051102

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ACKOWLEDGEMENT
I am very thankful to everyone who all supported me, for I have completed my
project effectively and more over on time. I am very grateful to my Project guide
Mr. PRADEEP JOSHI. He gave me moral support and guided me in different
matters regarding the topic. He has been very kind and patient while suggesting
me the outlines of this project and correcting my doubts. I thank him for his
overall support.
I am also very thankful to Mr. Sanjeev Dixit ( General Managerr At Earthcon
Constructions Pvt Ltd, Lucknow), for his able guidance and continuous support
and cooperation throughout my project, without which the present work would
not have been possible and for making me learn a lot of things and completing
my project effectively.
Thanking You

DATE:

DARSHAN SHARMA

PLACE:

BBA V SEMESTER

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Table of Contents
Chapter I1) Introduction of the Topic................................. 1
2) Objectives of study......2
3) Period of study.....3
4) Theoretical Background .........4
a) Application of performance appraisal results....5
b) Potential benefits of performance appraisal. ...6
c) Performance appraisal system in Escorts Ltd...7

CHAPTER II1)

Research Methodology
Research Design...14
Data collection..14
Sample size...14
2) Scope of the study....................................15
3) Limitations of the study....................................................16

Chapter III1) Industry profile..........................17

2) Company/organization profile.........19

Chapter IV
1)Data analysis & Interpretation....................................24

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Chapter V1) Findings.......................35
2) Suggestions & Recommendations....36
3) Conclusion37
Bibliography..38
Annexure.40

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EXECUTIVE SUMMARY
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 behavior literature relevant to real estate and suggest how these concepts could expand
real estate study.

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CHAPTER-I

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INTRODUCTION
Most real estate study is based on neoclassical economic theory that assumes that people make
rational decisions about renting and buying real estate as part of their attempt to maximize utility.
While recognizing that real estate markets are imperfect, most real estate researchers do not
examine the influence that the diversity of real estate consumers has on the demand for real
estate. Consumers are complex human beings driven by internal and external forces, some of
which are beyond their control and many of which they are relatively unaware.
Rather than ignore the human element of decision making or put all aspects of nonfinancial
decision factors in a black box called tastes and preferences, real estate students, professors,
and practitioners can benefit from integrating the study of consumer behavior with the financial
economic approach to real estate study. Greater knowledge of real estate consumers and their
behavior will lead to better understanding and prediction of decision makers actions in the real
estate market. The purpose of this paper is to present some of the most common consumer
behavior concepts and explain how integration of consumer behavior theories and understanding
would improve real estate study.

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OBJECTIVE OF THE STUDY
Main objective of the study is to have Consumer Behaviour. Other objectives of the study are
as follows:

To know about the real estate Industry in India.

To know about the real estate market in Lucknow.

To know about the consumer behavior in real estate sector.

To know about the Earthcon Constructions Private Limited.

PERIOD OF THE STUDY:

13 July 2015 to 26 August 2015

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THEORITICAL BACKGROUND
THE STUDY OF CONSUMER BEHAVIOR
Consumer behavior is the study of individuals, groups, or organizations in the selecting,
purchasing, using, and disposing of goods and services to satisfy needs and desires.
Consumer behavior examines not only what behaviors consumers exhibit but also the reasons
for those behaviors. On a macro level, marketers are interested in demographic shifts as well as
societys values, beliefs and practices that affect how consumers interact with the marketplace.
On a micro level, consumer behavior focuses on human behavior and the reasons behind these
behaviors. Thus, concepts drawn from psychology and sociology are prominently reflected in the
consumer behavior literature. The following sections describe these concepts as they are
applicable to the development of an increased understanding of real estate decisions in a
consumer behavior context.
CONSUMER CHOICE AND DECISION MAKING
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
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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.
DECISION RULES
When evaluating alternatives, such as choosing which property to purchase or rent, consumers
choose from a list of acceptable alternatives (evoked or consideration set) based on the criteria
they have selected as being important. For a product to be considered by a consumer, he must
know that it exists and perceive that it can satisfy his needs.
The criteria a consumer uses to choose between alternative products are the product attributes the
consumer considers important. Consumers may make the purchase decision using compensatory
or noncompensatory decision rules. With a compensatory decision rule, the consumer identifies
the important attributes, rates the alternative products on each attribute, and selects the product
with the highest score. With a simple additive rule, the consumer selects the product that is
judged to have the largest number of positive attributes.
This is a relatively simple rule used most often when motivation or ability is limited (Alba and
Marmorstein, 1987). Thus, a consumer might choose the apartment that offers a pool, exercise
room, built-in washer and dryer, but inconvenient location over an apartment with a
pool and a convenient location.
The weighted additive is a more complex compensatory rule in which the relative importance of
each product attribute is also factored into the decision. Therefore, the consumer completes the

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more complicated task of computing a summated weighted score for each product on the salient
attributes and selects the product with the highest overall score.
In contrast, no compensatory decision rules do not balance all attributes and determine whether
the positives outweigh the negatives. Rather, if the product does not meet a minimum standard
on an important attribute, then it will not be considered. Using a conjunctive decision rule, the
consumer sets minimum acceptable levels on all important attributes and eliminates any
alternative that does not meet all the minimums. This helps consumers to narrow down the
choices for further evaluation. If none of the products meets all the cutoff requirements, either
the consumer must change the minimums acceptable or change his or her decision rule (Grether
and Wilde, 1984). In the above example, if the tenant requires a pool, exercise room, built-in
appliances, and convenient location, then neither of the apartments would be acceptable. The
consumer will either continue to search for the appropriate property or compromise on her
standards.
With the lexicographic rule, the consumer first ranks the attributes in terms of perceived
importance. Then the alternatives are compared on this one most important attribute. If one
scores sufficiently high on this most important attribute, then it is selected. If two or more are
perceived as equally good, they are then compared on the second most important attribute.
This process continues until the tie is broken. Therefore, if a tenant says she selected an
apartment because the balcony has French doors instead of sliding doors, it is important to
remember that this difference may reflect the tie breaker after other, more important, attributes
were deemed to be equal across apartment options.
Consumers may use a combination of decision rules in choosing a property. First, they may use a
rule to narrow down the choice set with some simple cutoff, and then they may apply a more

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complex compensatory rule to make the final choice. Some criteria are more salient than others
and those attributes will have a greater impact or importance in determining consumer selections.
Whether a characteristic is salient depends on the alternatives and consumers evaluation of
them. If, for example, the consumer with small children believes all neighborhoods in the city
offer equally good schools, then school quality is not a deciding factor in which house to buy.
Salient attributes that actually influence the evaluation of alternatives are known as determinant
attributes (Alpert, 1971). The particular criteria consumers use in their decision making depend
on situational influences, similarity among choices, motivation, involvement, and knowledge.
Decisions involving widely disparate alternatives (a single family detached house, a mobile
home in a trailer park, and a houseboat moored at a dock) may require the consumer to use more
abstract evaluative criteria to evaluate the alternatives (Bettman and Sujan, 1987; Corfman,
1991; Johnson, 1984; Johnson, 1989). The more similar the options, the more the consumer can
rely on concrete criteria and price to make comparisons. The consumers motivation for
purchasing a property will directly affect the criteria used to evaluate alternatives. Experienced
consumers are more likely to know which dimensions are useful for comparing alternatives.
First-time buyers are more susceptible to external influences determining what criteria they use
during decision-making (Bettman and Sujan, 1987).
The average consumers lack of information about all available real estate options may result in
the consumer not purchasing the property that would best serve his needs because he is unaware
that the property exists. Others may make less than optimal decisions because comparing all the
properties on all the salient attributes may be too complex. They may resort to a no
compensatory decision making process to make the procedure manageable. If consumers are
using no compensatory rules to make decisions, then the real estate appraiser needs to identify

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which property characteristics are being used to screen properties and remove the eliminated
properties from the list of comparables. Otherwise, the analyst may overestimate the contribution
of certain attributes to value. Property developers and managers need to recognize whether
consumers are making decisions based on cutoffs. If a consumer sets an acceptable minimum as
two bathrooms, then any house with only one and one-half bath would not be considered and a
house with three bathrooms may not be valued any higher than a similar house with only two
baths. Similarly, if consumers are using lexicographic rules, then the property must be perceived
to possess a noticeably higher level of the most important attribute(s) to ensure being selected.
Information search
Consumers seek and use information as part of a rational problem solving and decision making
process. Consumers first search internally for historically gathered information (Bettman, 1979;
Punj, 1987). Experience, length of time since last purchase, and satisfaction with previous
purchase will affect the consumers reliance on internal information. As most consumers
purchase real estate infrequently, they rarely rely solely on their past knowledge when selecting a
new property to purchase.
Consumers may also conduct an external search of personal and impersonal sources of
information. Situational determinants that can constrain information search include the quantity
and availability of information in the marketplace and time pressure (Beatty and Smith,
1987). Other factors that influence search behavior are product determinants and consumer
determinants.
Product determinants include a variety and type of product features. For example, if consumers
perceive great differences between products, they are likely to make more comparisons. Also,
products characterized by innovations may require consumers to update their knowledge since

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last purchase through an information search process. The relatively high price of real estate will
create concerns about the financial risks involved in the purchase and lead to greater search (Kiel
and Layton, 1981).
Some of the consumer determinants that affect individual search behavior include knowledge,
involvement, beliefs and attitudes, and demographic characteristics. Research has found that
product knowledge may be positively or negatively related to the amount of search (Beatty and
Smith, 1987; Kiel and Layton, 1981; Newman and Staelin, 1972; Punj and Staelin, 1983;
Urbany, Dickson, and Wilkie, 1989). Knowledge can allow the consumer to rely more heavily on
internal information, but it can also enhance search by enabling more effective use of newly
acquired information. When consumers feel more confident about their ability to judge products,
the will typically acquire more information (Duncan and Olshavsky, 1982).
This implies that there may be an inverted-U relationship between knowledge and external
search (Bettman and Park, 1980). Consumers with extremely limited knowledge (such as first
time homebuyers) may feel incompetent to undertake an extensive search and analysis on their
own. Instead, they may rely heavily on others such as friends, relatives, or salespersons.
Moderately informed consumers possess sufficient knowledge to explore and understand more
information, but their knowledge is not so great that they feel comfortable relying on memory
and experience, so they will undertake more extensive external search on their own.
Those consumers with the greatest knowledge of the product and market may already possess all
the information they need to make a decision without a formal extended search.

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Consumers differ in their attitudes toward shopping. In general, consumers engage in more
search as their attitudes toward shopping become more favorable (Beatty and Smith, 1987; Punj
and Staelin, 1983). Individual beliefs about the cost versus benefits of search will also guide
search (Urbany, 1986). Research indicates that search may be related to several demographic
characteristics (Beatty and Smith, 1987). Age is often negatively related to search (Cole and
Balasubramanian, 1993). Older consumers have greater experience with many products so they
can rely on internal information. Higher income consumers often search less than lower income
consumers because of the value of their time (Urbany, 1986).
More educated consumers usually search more, perhaps because of their greater confidence in
their ability to undertake the search and use the information gathered effectively (Duncan and
Olshavsky, 1982). Because the modes of information search and, ultimately, decisionmaking are
a function of both internal and external influences on behavior, the remaining sections focus on
the consumer behavior implications of each.

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CHAPTER-II

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RESEARCH METHODOLOGY
RESEARCH PROBLEM
Real Estate Corporate facing financial crunch
Decreasing business of Real Estate Companies
RESEARCH DESIGN
Determined the Information Sources: The researcher gathered data through secondary sources.
PRIMARY DATA is collected through questionnaire, search and research from developers and
market watchers.
SECONDARY DATA is being search sites like magazines, newspapers, journals, websites and
the data has been collected through other approaches.
DATA COLLECTION
The researcher collected information through the official websites, magazines and journals.
DEVELOPED THE RESEARCH FRAME:
This included deciding upon various aspects for the project on which the entire research is based.
The research frame included:
NATURE OF STUDY
The project on which the researcher worked is descriptive and inferential in nature.
DATA SOURCE:
The researcher took the help of both primary as well as secondary sources. Primary data was
selected from Earthcon Construction Pvt. Limited. Secondary sources being interaction with
various Real Estate people of the selected and has been chosen for the research by the researcher.
Secondary sources being the internet as the medium and the official sites of the companies of
Real Estate sectors and corporate selling and feedback on real estate Companies.
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INSTRUMENT USED
The researcher for the research used a Questionnaire cum Schedule for market research for both
the segments horizontal and vertical. The Questionnaire was prepared by the researcher and
Schedule was provided by the company in which the researcher did its research report.
SAMPLE SIZE
Sample size for the research is fixed. It counts to 100.
SAMPLE AREA
Lucknow

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LIMITATIONS

There was a time constraint, as study continues for a limited period.

A single person has conducted the study and as a result only limited numbers of people
were being contacted.

The data provided by the investors may be biased, which may affect the purpose of study.

Some people found it unsafe to disclose actual information about their investments,
which affected study, as targeted population sometimes has to be skipped.

Study if limited to customers of Earthcon Construction Private Limited

The study is conducted for a limited area i.e. Lucknow; other areas are not taken in
consideration.

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CHAPTER-III

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INDIAN REAL ESTATE SECTOR
The Indian real estate sector is one of the most globally recognised sectors. In the country, it is
the second largest employer after agriculture and is slated to grow at 30 per cent over the next
decade. It comprises four sub sectors - housing, retail, hospitality, and commercial. The growth
of this sector is well complemented by the growth of the corporate environment and the demand
for office space as well as urban and semi-urban accommodations.
According to a study by ICRA, the construction industry ranks third among the 14 major sectors
in terms of direct, indirect and induced effects in all sectors of the economy.
It is also expected that this sector will incur more non-resident Indian (NRI) investments in the
near future, as a survey by an industry body has revealed a 35 per cent surge in the number of
enquiries with property dealers. Bengaluru is expected to be the most favoured property
investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and
Dehradun.
Indias real estate market is expected to increase seven times by 2028 to reach US$ 853 billion
by 2028 from US$ 121 billion in 2013. It is currently the fourth-largest sector in the country in
terms of foreign direct investment (FDI) inflows. FDI in the sector is estimated to grow to US$
25 billion in 10 years.
Real estate contribution to Indias gross domestic product (GDP) is estimated to increase to about
13 per cent by 2028, on the back of increasing industrial activity, improving income level and
urbanization.
Private equity (PE) investments in real estate in 2013 stood at US$ 1.1 billion, a 13 per cent
increase in INR terms from US$ 1.2 billion in 2012. Total number of deals increased from 34 in
2012 to 40 in 2013, with an average deal size of US$ 28.0 million.
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The Government of India has allocated US$ 1.3 billion for Rural Housing Fund in the Union
Budget 2014-15. It has also allocated US$ 0.7 billion for National Housing Bank (NHB) to
increase the flow of cheaper credit for affordable housing for urban poor.
The entry of major private players in the education sector has created vast opportunities for the
real estate sector. Emergence of nuclear families and growing urbanisation have given rise to
several townships that are developed to take care of the elderly. Growth in the number of tourists
has resulted in demand for service apartments. This demand is likely to be on the uptrend and
presents opportunities for the unorganised sector.

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MARKET SIZE
The Indian real estate market size is expected to touch US$ 180 billion by 2020. The housing
sector alone contributes 5-6 per cent to the country's gross domestic product (GDP). Also, in the
period FY08-20, the market size of this sector is expected to increase at a compound annual
growth rate (CAGR) of 11.2 per cent. Retail, hospitality and commercial real estate are also
growing significantly, providing the much-needed infrastructure for India's growing needs.
Real estate has emerged as the second most active sector, raising US$ 1.2 billion from private
equity (PE) investors in the last 10 months.
Foreign investors have bought tenanted office space worth over US$ 2 billion in India in 2014, a
four-fold rise compared to the previous year, in order to increase their rent-yielding commercial
assets in Asia's third largest economy.
According to a study by Knight Frank, Mumbai is the best city in India for commercial real
estate investment, with returns of 12-19 per cent likely in the next five years, followed by
Bengaluru and Delhi-National Capital Region (NCR). Also, Delhi-NCR was the biggest office
market in India with 110 million sq ft, out of which 88 million sq ft were occupied. Sectors such
as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space
in recent times.
Delhis Central Business District (CBD) of Connaught Place has been ranked as the sixth most
expensive prime office market in the world with occupancy costs at US$ 160 per sq ft per
annum, according to a survey by CBRE.

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INVESTMENTS
The Indian real estate sector has witnessed high growth in recent times with the rise in demand
for office as well as residential spaces.
Blackstone Group Lp is all set to become the largest owner of commercial office real estate in
India after a three-year acquisition drive in which it spent US$ 900 million to buy prime assets.
According to data released by Department of Industrial Policy and Promotion (DIPP), the
construction development sector in India has received foreign direct investment (FDI) equity
inflows to the tune of US$ 24,012.87 million in the period April 2000-December 2014.
Some of the major investments in this sector are as follows:

Google Capital has invested in Bengaluru-based online property search platform,

CommonFloor.com.

Omkar Realtors and Developers Pvt Ltd is in talks to raise Rs 400 crore (US$ 66.68
million) from KKR India Asset Finance Pvt Ltd, the local arm of global investor
Kohlberg Kravis Roberts and Co LP (KKR).

Goldman Sachs Group bought shares worth Rs 255 crore (US$ 41.23 million) in Vatika
Hotels Pvt Ltd, a company owned by real estate and hospitality firm Vatika Group.

SoftBank Internet and Media Inc will invest, along with Falcon Edge Capital and others,
US$ 90 million in Locon Solutions Pvt Ltd, which runs Housing.com - a realty website.
The SoftBank Group will become the largest investor in Housing.com after this round of
funding.

The Qatar Prince, Hamad bin Khalifa Al Thani, plans to invest Rs 1,000 billion (US$
16.17 billion) over the next five years in at least 10 smart cities of India. He has already

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tied up with a Delhi-based businessman for taking the investment forward through
projects in real estate, sea ports and airports, besides smart cities.

Real estate firm Supertech has planned to invest about Rs 2,000 crore (US$ 323.49
million) in Gurgaon over the next few years by launching several luxury and affordable
projects.

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GOVERNMENT INITIATIVES
Under the Sardar Patel Urban Housing Mission, 30 million houses will be built by 2022, mostly
for the economically weaker sections and low-income groups, through public-private-partnership
(PPP), interest subsidy and increased flow of resources to housing sector', according to Mr M
Venkaiah Naidu, Union Minister of Urban Development, Housing and Urban Poverty Alleviation
and Parliamentary Affairs, Government of India.
The Government of India along with the governments of the respective states have taken several
initiatives to encourage the development in the sector. Some of them are as follows:

The Government of Maharashtra has announced a series of measures to bring

transparency and increase the ease of doing business in the real estate sector.

The Government of India has relaxed the norms to allow foreign direct investment (FDI)
in the construction development sector. This move should boost affordable housing
projects and smart cities across the country.

The Securities and Exchange Board of India (SEBI) has notified final regulations that
will govern real estate investment trusts (REITs) and infrastructure investment trusts
(InvITs). This move will enable easier access to funds for cash-strapped developers and
create a new investment avenue for institutions and high net worth individuals, and
eventually ordinary investors.

The Telangana Real Estate Developers' Association (Treda) plans to host the Fifth Treda
Property Show 2014 at Hitex Centre, Hyderabad. The show will be open to a mix of the
populace, including prospective property purchasers, investors, architects and others.

The State Government of Kerala has decided to make the process of securing permits
from local bodies for construction of houses smoother, as it plans to make the process

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online with the launch of a software called 'Sanketham'. This will ensure a more
standardised procedure, more transparency, and less corruption and bribery.

ROAD AHEAD
Responding to an increasingly well-informed consumer and keeping in mind the globalization of
the Indian business outlook, real estate developers have also shifted gears and accepted fresh
challenges.
The most marked change has been the shift from family owned businesses to professionally
managed ones. Real estate developers, in meeting the growing need for managing multiple
projects across cities, are investing in centralized processes to source material and organize
manpower and hiring qualified professionals in areas like project management, architecture and
engineering.
The growing flow of FDI into Indian real estate is encouraging increased transparency.
Developers, in order to attract funding, have revamped their accounting and management
systems to meet due diligence standards.

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INDIAN REAL ESTATE MARKET PERMEATES TO SMALLER
TOWNS AND CITIES
According to leading global property consultancy firm Knight Frank, the real estate action is no
longer limited to the large metropolises of India but has now permeated to the burgeoning
smaller towns and cities. These emerging centers of growth are lending sparkle to India's
booming economy. What is leading this transformation?
According to Research, the upswing of the Indian real estate sector has been an outcome of a
number of positive micro and macro factors. Consistent and sustaining GDP growth, expanding
service sector, rising purchasing power and affluence, proactive and changing government
policies have all lent momentum to this rapidly growing sector.
Accounting for almost 80% of the total office space absorption, the Indian IT/ITES sector has
been the primary demand driver. India's low cost-high quality and productivity model has given
it a leadership position in the outsourcing arena. In a bid to scale up their operations and to
remain globally competitive, the Indian IT/ITES companies are exploring the smaller towns and
cities. Rising manpower and real estate costs, plaguing attrition levels and very often risk
mitigation have been the key reasons for this movement.
Positive economic growth has also translated in rising disposable incomes and growing
aspiration levels across India. Rising consumerism has created a demand for new retailing and
entertainment avenues. Realizing that consumers across cities have similar needs, albeit the scale
may vary, new age retailers are vying to cash in on the first mover advantage and are expanding
into hitherto unexplored smaller cities. Advent of organized retailing has also translated into real
estate growth in these emerging locations.

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Growth of the Indian 'Rich' (annual income>USD 4,700) and 'Consuming' (annual income USD
1,000-4,700) class coupled with falling interest rates and other fiscal incentives on home loans
has increased the affordability and the risk appetite of the average Indian consumer thereby
leading to a substantial rise in demand for housing. This has been further fueled by the increase
in the size of 25-55 age group of earning population and the emergence of double income,
nuclear families. Over the last decade the average age of Indian home loan borrower has reduced
by 10 years.
Another variable facilitating real estate growth in India is the growing urbanization. According to
United Nations Population Division, the urban population in India will continue to grow at a rate
of 2.5% per annum for the next two and a half decade. As per the Census of India 2001, 41% of
the total population of India will be living in urban areas by 2011. The number of cities with a
population of one million or more is also is expected to double from 35 recorded in 2001 to 70
by 2005. This increase in population will generate incremental demand for housing and other real
estate components.
All these factors together with increased liquidity in the real estate sector through the
international real estate funds and private equity funds will result in radically transforming the
real estate landscape over the next 3-5 years. India's investment scenario is already undergoing a
sea change and has been seen to be making roads in rural India with telecom, rural retailing,
agricultural supply chain and logistics facilities, micro-credit, etc. All these factors foretell that
the real estate growth will soon spread out of the established boundaries.
However, to support this growth and to make it more expansive, a lot needs to be done. Foremost
is the thrust on infrastructure. According to a World Bank estimate, India needs to invest an
additional 3-4% of its GDP on infrastructure to sustain its current levels of growth and to spread

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the benefits of growth more widely. Some positive steps have already been taken in this
direction. Huge investments in infrastructure to the tune of $350 billion have been envisaged
over the next five years. Connectivity may get a boost with the completion of ~13,000 kms of
roads under the Golden Quadrilateral, North-South-East-West (NSEW) corridor and with 4laning of all the major national highways. This will further facilitate the economic development
of smaller towns and cities in the country.
Major real estate destinations of the country and some other emerging towns can be classified
into three broad categories depending upon the stage of real estate development that each one of
them is undergoing.
Tier I Cities: Bangalore, Mumbai and NCR Characteristics: Fairly well established real estate
market. Demand drivers quite pronounced.
Tier II Cities: Hyderabad, Lucknow, Chennai, Pune and Kolkata Characteristics: Growing real
estate markets. Experiencing heightened demand and investments.
Tier III Cities: Chandigarh, Lucknow and Kanpur, Guwahati, Bhubaneswar, Jaipur, Ahmedabad,
Surat, Nagpur, Indore, Goa, Visakapatinam, Mysore, Coimbatore, Kochi, Vijaywada, Mangalore,
Trivandrum and Baroda Characteristics: Real estate markets yet to establish.Perceived to have
substantial potential demand.
As the Indian real estate sector moves higher on the growth curve, a number of state capitals and
smaller cities which have relatively better infrastructure and are able to support higher economic
growth have come into limelight. These emerging growth centers are characterized by low real
estate costs, availability of land for development, untapped manpower pool and rising quality of
life. Many of these towns have industrial and tourism driven economic base that can be

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leveraged for growth. Anticipating the latent demand in these markets, a number of real estate
developers and retailers have chalked out expansive plans to harness the opportunity.

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REAL ESTATE POTENTIAL IN LUCKNOW
According to a latest report by CRISIL (Credit Rating Information Services) Lucknow real estate
market is going through a transitional phase where lot of activities are going on there. CRISIL
has listed the realty sector of Lucknow city as one of the fastest growing real estate markets
in India. The number of buyers and investors from national and international market investing in
the city has also increased substantially.
Successful shifting from traditional homes to new-age high rise apartments among the modernday buyers is one of the prime reasons for this growth. To elaborate further Lucknows realty
market can be broadly divided into 2 main zones: Old Lucknow and New Lucknow. People in
Old Lucknow prefer independent housing (for example DLF Gardencity plots) whereas New
Lucknow is dominated by high rise housing solutions. Being the political capital of Uttar
Pradesh the city has witnessed a great infrastructural development that gave a much needed boost
to the real estate sector.
Adding more to it 3 proposed metro projects will give an additional push to Lucknow market and
will help in unlocking its real potential. Talking further under-construction bridges across Gomti
River, expressways connecting Lucknow to nearby cities has played a pivotal role in expanding
the realty section here. Trans Gomti region especially Gomti Nagar Phase I, Phase II and Gomti
Nagar Extension are the main centres of development attracting both the developers and the end
users. The region not only boasts of good road network but also offer well-planned civic
infrastructure and close proximity to nearby places. Sahara Hospital and Ram Manohar Lohiya
Hospital are two major hospitals located in the Gomti Nagar area.
Lucknow Industrial Development Authority (LIDA) is also implying for the development of city
realty market especially the Lucknow-Kanpur Road section where many new projects are

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coming up in near future. To sum it all Lucknow market is going to establish its mark in coming
times thus it is the right time to invest here.

LUCKNOW METRO TO BOOST REALTY MARKET

The Lucknow realty market is in for a major boost with the much-delayed Lucknow Metro rail
project on track.
The project, estimated around Rs 15,000 crore, was given the go-ahead by the state Cabinet last
week. The first phase, estimated at Rs 8,000 crore, is likely to be up and running by 2016-17.
Players are optimistic that once the project starts, local realty would become hot property, akin
to what Delhi Metro did to the sector in the national capital region (NCR).
Besides, the state is also considering steps to unlock land value in the vicinity of the metro route
by offering higher floor area ratio, flexible land use, etc.
He said while the areas on the periphery of the metro route would see maximum appreciation in
rates, faraway ones could benefit to the extent of 100 per cent.
Already Lucknow property rates have seen upward spiral with the circle rates hiked by almost
20-25 per cent effective from August 2013.
Real Estate Developers Association of UP president Sudhir S Halwasiya said Lucknow property
market, which had been sluggish of late, would definitely get an upsurge with the additional of
this rapid transport infrastructure.
With explosive horizontal growth in major tier II and II towns across India, Lucknow being no
exception, realty has been witness to steady organic and incremental growth on the demand for
housing.
The suburban areas have been bursting at the seams with real estate projects, both by reputed
national brands viz. DLF, Omaxe, Parsvnath etc, and local players.

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The project would be funded 50:50 by the Centre and UP on the lines of Delhi Metro Rail
Corporation (DMRC).
Both the joint venture partners would infuse 20 per cent each as equity in the project, while the
rest of the funds would be raised through debt. A sub-committee had already been constituted
under Rajiv Aggarwal, state housing secretary, to identify alternative sources of funding.

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SOME REAL ESTATE PLAYERS IN LUCKNOW

DLF

PARSVNATH

IVRCL

ANSAL API

ELDECO HOUSING & INDUSTRIAL LIMITED

UNITECH LIMITED

SAHAR CITY HOMES

RR GROUP

SAS GROUP

RUDRA REAL ESTATE DEVELOPERS

HALWASIA PROPERTIES

NDBG GROUP

SHINE

KASHI DEVELOPERS

EARTH INFRA

JDGROUP LIMITED

ANAND PROPERTIES

ASTHA INFRA HEIGHTS

AG HOUSING & PROPERTIES LTD.

SHRI LAXMI BUILDERS

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AVADH CONSUTRUCTIONS

COMPANY PROFILE

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COMPANY PROFILE
Founded on the success of Ganga Contract and Projects Ltd., a construction company set up by
first generation entrepreneurs Mr. Shadab Khan and Mr. Tanweer Obaid Azmi, Earthcon was
established in 2005. Since then it has built an enviable reputation for itself as a real estate
development company.
Earthcon Construction Pvt. Ltd.s vision to develop value housing in Tier I and Tier II cities soon
bore fruit as it achieved success in its Tier I & Tier II city projects which were well received.
Group housing projects in Lucknow and Aligarh have added considerable depth and width to its
portfolio. Today, its diversified portfolio includes nearly 110 acre of land with 85,00,000sq.ft. of
development in various stages of execution along with a steady pipeline of projects under
consideration and acquisition.
The company has earned awards and accolades for its high quality standards, innovation,
creativity and high performance culture such as the Best Developer of the Year award in 2010 by
the Builder Council of India.
To accelerate growth and consolidate its position as a real estate developer, the company, in
2009, carved out a separate joint venture called Earthcon Vertical Limits Infracon Pvt Ltd. The
new entity is presently working on five large residential and commercial developments in
Lucknow, Moradabad, Noida and Greater Noida.

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MISSION & VISION
Our Mission
To scheme sustainable real estate developments through continuous innovation and best practices
to provide quality life spaces to customers across all segment.
Our Vision
To create sustainable real estate developments through continuous innovation and best practices
to provide quality life spaces to customers across all segment.
Concerned Living
At one end of the 'Concerned Living' continuum are customers and their preferences and, at the
other, the companys commitment to environmentally sustainable development. Remaining true
to our values and principles, Earthcon believes in creating living and working that are
environmentally friendly, energy efficient, cost effective yet stylish. Harmony between form and
function is the foundation of the Concerned Living approach. In keeping withthis focus,
Earthcon creates world class living spaces suited to Indian tastes and needs, so that its customers
can enjoy healthy lifestyles.

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OUR VALUES
Customers first
Catering to our clients needs, preferences, and expectations effectively and speedily is part of
our DNA. We believe in providing personal and individual service which we assess against core
values such as integrity, ethics and diligence.
Innovation
We know we can achieve our goal of spear heading the regional real estate business only by
embracing innovative ideas and technology in a constantly changing environment.
Quality
Adherence to high quality standards is the key to delivering value for money to our customers
and creating client delight. Quality is the driving force behind our work and our products. We
believe in "doing it right the first time."
Integrity
At Earthcon, we believe in scrupulous professional integrity. We deliver what we promise!
Responsible Corporate Citizenship
As responsible corporate citizens, we provide an enhanced living experience to our customers
through sustainable development. We are actively involved in exemplary environmental practices
as caring corporate citizens. Embracing and promoting sustainable development is at the heart of
our core strategy.

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LEADERSHIP
From a modest beginning in 2002 "Earthcon Constructions
Pvt. Ltd" has now grown into a fully incorporated building
& construction corporation. Analogous to Earthcon, Ganga
Contracts has been making significant contributions in
government infrastructure development. The guiding values
of the company throughout have been creation of
insuperable commercial and residential spaces, encouraging
better living and providing value for money deals to its patrons.
In business for over a decade, Earthcon has enjoyed a strong reputation in private and
government construction as well. While Earthcon has been illustrious in private construction,
Ganga Contracts has established itself as a valuable government partners and undertook major
central & states government projects.
The company has plans to develop as a one-stop-shop for its clients and investors as well.
Projects of Earthcon & Ganga Contracts have been bench-marked against the best constructed
with regular up-gradation of engineering and innovation. It is our firm belief that value-driven
constructions will lead to holistic development of the nation and society. The world today desire
green and clean work and living spaces which has been a part of our corporate culture since
inception. Hence we have the aptitude and ambition to be a global conglomerate committed to
bettering lives individually and society at large.
If today Earthcon stands proudly as realty major, it is largely due to the trust of its valuable
clients and confidence of its farsighted investors.

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2013 was a year of excellence all round performance for Earthcon. Looking ahead we will
continue our journey towards building aesthetically unparalleled & environmental friendly
nation.

Shadab Khan
Chairman
Earthcon Constructions Pvt. Ltd.

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LEGACY
After achieving many milestones, Earthcon Constructions Pvt. Ltd. today holds a position of
strength in the real estate industry. The company, under its predecessor, Ganga Projects and
Contracts Ltd has delivered consistent performance and earned appreciation.
Consolidating and building on this success, we sought new opportunities and grew from strength
to become reputed real estate developers.
Our experience as project contractors puts us in a win-win situation. Our hands-on experience
gives us valuable insight into the real estate industry and a greater control over different aspects
of building construction. Another advantage is that we don't have to rely on a third party for the
execution of our projects. And, most importantly, our extensive experience of project
management consultancy had proved to be our greatest asset. At Earthcon, we aspire to achieve
the best quality work within budget and on time by applying project management techniques to
building construction.
Backed by our extensive experience, we understand the art and craft of construction; and are
committed to using this knowledge to the best advantage for our customers.

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PROJECTS

Commercial

Residential

Holiday Homes

Completed Projects:

Ekta Vihar (Sambhal)

Sir Syed Apartments (Noida)

Naini Resort (Bhowali)

Neeligiri Apartments (Bhowali)

Museum Complex (Darjeeling)

Progessive Co-op Housing Society (Dwarka)

Surya Co-op Housing Society (Dwarka)

Milan Vihar Co-op Housing Society (Patparganj)

Gyan Shakti Co-op Housing Society (Dwarka)

Administrative Building, Govt. of J&K (Jammu)

Mini Secretariat, Govt. of Haryana (Karnal)

Housing Project, Subroto Park (New Delhi)

Housing Project (Greater Noida)

Auditorium Building (Greater Noida)

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OUR GREEN INITIATIVES

At Earthcon we believe in creating spaces that have international feel but suited to Indian tastes.
Our innovative architecture designs are modeled on eco-friendly concepts and incorporate the
best of East and West.
The idea behind our residential spaces is that owners come home to green havens of peace, a
place that evokes in them a feeling of joie de vivre! Our commercial places that pulsate with
human activity are marvels of technical innovation based on the concept of sustainable
development.
For us aesthetics of open spaces is as important as the inner space, so our open spaces are as
meticulously planned and designed as the inner one. We utilize our open spaces to create green
patches around our high rise buildings, so the people, who are always on the go, can take some
time off and connect with their inner being in the freshness of their green surroundings. No
matter how tall our building may rise, never lose touch with our roots. We are committed to
protecting the environment. We believe in the concept of green living and are incorporating the
green building techniques in our projects, because we understand that life flourishes best when
we align our needs without physical environment.
We believe in sustainable urbanization, so we build sustainable homes. In our residential and
commercial projects we have rainwater harvesting facilities and solar panels to make buildings
energy efficient. To improve the thermal performance of the building we use high-performance
glass for windows and roof insulation. We are also working on facilities that can offer waste
management solutions to our buyers.

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LUCKNOW PROJECT
URBAN VILLEGE

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SITE PLAN

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FLOOR PLAN

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FLOOR PLAN

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FLOOR PLAN

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FLOOR PLAN

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FLOOR PLAN

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FLOOR PLAN

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FLOOR PLAN

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LOCATION MAP

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CHAPTER-IV

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DATA ANALYSIS
1) Table showing present type of Residential Ownership.
Type

No. of Respondents

% of Respondents

Ownership

36

36%

On Rental

49

49%

Others

15

15%

Total

100

100%

The above table shows that, maximum no. of respondents stays on rental basis i.e.49%, 36% of
the respondents have their ownership on residence and 15% of respondents are in others
category, which include residence on lease or staying at relative.

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2) Table Showing Factors taken into consideration while purchasing Residential properties.
Factors

No. of Respondents % of Respondents

Location

28

28%

Price

39

39%

Transportation Facility

16

16%

Accessibility to Market

07

07%

Others

10

10%

Total

100

100%

The above table shows that maximum no. of respondents i.e. 39% consider Price, whereas 28%
consider location while 16% consider transportation facility whereas 10% consider other factors
like Vastushastra, Water availability etc. and 07% of respondents consider accessibility to market
as important factor for purchasing residential properties.
3) Table showing Parameters considers while selecting residential properties.
Parameters
Brand Name

No. of Respondents
53

Quality
Space (Sq. ft.)

62
49

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Facilities
Interior
Schemes

73
30
57

The above table shows that maximum no. of respondents i.e. 73 consider Facilities as parameter
while 62 respondents consider Quality, whereas 57 of respondents consider Schemes whereas 53
respondents consider Brand name while 49 respondents consider Space (Sq. ft.) and 30
respondents consider Interiors as the parameters while selecting residential properties.

4) Table showing sources of Information for respondents while Property Purchasing.

Sources

No. of Respondents % of Respondents

Hoardings

13

13%

Newspapers

17

17%

Agents/Consultants

33

33%

Relatives/Friends

28

28%

Others

09

09%

Total

100

100%

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Above table shows that 33% of respondents get their information from Agents /Consultants,
where as 28% of respondents get information from Relatives/ Friends while 17% of respondents
get information from Newspapers whereas 13% of respondents get information from Hoardings
and 09% of respondents get their information through Other Sources like Local News
Channel,Radio,Internet etc. for Purchasing Residential Properties.
5) Table showing awareness in respondents about various schemes offered by Earthcon.
Awareness

No. of Respondents % of Respondents

Yes

67

67%

No

33

33%

Total

100

100%

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The above table shows that maximum no. of respondents i.e. 67% were aware about the various
schemes offered by EARTHCON whereas 33% of respondents were not aware about various
schemes offered by EARTHCON.

6) Table showing duration of the year when normally respondents like to purchases
residential properties.
Month

No. of Respondents % of Respondents

Jan to Apr

35

35%

May to Aug

13

13%

Sept to Dec

52

52%

Total

100

100%

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Above table shows that maximum no. of respondents i.e. 52% would prefer Sept to Dec as the
duration where as 35% respondents would prefer Jan to Apr while 13% of respondents prefer
May to Aug as the duration of the year where they would like to purchase residential properties.

7) Table showing type of Residential property respondents would like Purchase.

Type

No. of Respondents % of Respondents

1 BHK Flat

18

18%

2 BHK Flat

48

48%

3 BHK Flat

24

24%

Bungalow/Row house

04

04%

Others

06

06%

Total

100

100 %

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Above table shows that maximum no. of respondents that is 48% would like to purchase 2 BHK
Flat, whereas 24% respondents prefer 3 BHK Flat, while 18% respondents prefer 1BHK Flat
whereas 4% of respondents prefer Bungalow/Row house and 06% respondents prefer others
which include Duplex, Terrace Flat, Attached Flat etc. for purchases of residential property.
8) Table showing mode of purchases of residential property preferred by respondents.
Mode

No. of Respondents % of Respondents

Home Loans

57

57%

Lum-sum

06

06%

Installments

33

33%

Others

04

04%

Total

100

100%

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Above table shows that maximum no. of respondents i.e.57% would prefer Home Loans whereas
33% of respondents would prefer Installments while 06% of respondents would prefer Lum-sum
and 04% of respondents prefer Others.

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CHAPTER-V

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FINDINGS
1) During the time of survey, it was found that 49% respondents are having the resident on
rental, 36% respondents are having own property & 15% respondents are having other
sources such as lease, relatives & friends etc.
2) It was found that the price & location is major factor which consider by the customer at the
time of purchasing the residential property. Here 39% respondents are considering the price,
28% respondents are consider location & 16% & 7% respondents are considering
transportation & market facility.
3) It was found that the quality & facilities are most considerable parameters at the time of
selecting residential property. Brand Name & schemes are also consider the consumer at the
time of purchasing the residential property.
4) It was found that the source of information for consumers the real estate consultant play
very vital role. 33% respondents go through the consultants, 28% respondents prefer
relatives & friends, 17% go through newspapers & 22% respondents prefer through
hoarding & others sources.
5) It was found 67% respondents were aware of various schemes offered by EARTHCON &
33% respondents were not aware. Here the most of the respondents opinions about
schemes of EARTHCONs are good.
6) In the duration of September to December the most of the respondents were like to purchase
the residential property because most of the festival are in this duration. Here 52%
respondents preferred in September to December, 35% respondents preferred in January to
April & 13% respondents preferred in May & August.

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7) It was found that demand of the 2 & 3 BHK flats were more as comparing to other types.
48% respondents prefer 2 BHK flat, 24% respondents prefer 3 BHK & 18% & 4%
respondents choose the 1 BHK & Bungalow respectively. Here 6% respondents go through
the other type such as Duplex flat, Gallery or Terries & 1 HK flat.
8) In the mode of payments 57% respondents go through home loans of various banks &
private financial institutes, 33% respondents go through installments, 6% respondents
through lum sum amount & 4% respondents choose other mode of payments.
9) It was found that the close competition of EARTHCON were Vascon, Bramha Builders &
Nyati Builders which were mostly known by the respondents.

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CONCLUSION
A significant portion of the study of real estate deals with the consequences of consumer
decisions regarding real estate assets and services. Appraisal attempts to estimate the value of
property to consumers. Market analysis attempts to predict consumer demand for real estate
services. Investment analysis examines the required and expected rate of return to an investor,
and finance analyzes consumers mortgage choices and likelihood of repayment.
The study of consumer behavior involves trying to understand complex human beings and the
reasons they act the way they do in the marketplace. It recognizes that consumer decisions take
place inside a person who is distinctive in his personality and attitudes, yet similar to other
consumers who have been exposed to the same external influences of culture and society.
Rather than ignoring these complexities, real estate researchers should embrace the study of
consumer behavior to better understand the reasons behind market choices.
Within appraisal, the sales comparison approach estimates the value of a property based on what
consumers are willing to pay for individual components of the property. The study of consumer
behavior examines why people value those components, which people value those components,
and why preferences change over time. A review of the consumer behavior literature would
suggest that buyer/seller attributes be explicitly considered in appraisal to determine market
characteristics and the properties considered to have the same utility and amenities (Ratcliff,
1965; 1972).
Attitudes, lifestyle, and tastes affect consumer preferences for space. Market analysts should not
rely exclusively on census-based economic and demographic data from which they infer
information about consumers (Rabianski, 1995). Megbolugbe, Marks, and Schwartz (1991)
contend that the incorporation of information about consumer attitudes, preferences, and
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perceptions into economic models of housing demand is critical to any reduction of the large
margin of unexplained variance in housing consumption behavior.
The importance of the individual in the study of investments is reflected in the discussion of
investment value. The value of a particular property to an individual investor reflects the
investors unique situation with respect to such factors as taxes, investment objectives, financing
opportunities, and the need for liquidity (Corgel, Smith, and Ling, 1997; Lusht, 1997). Each
person may vary as to level of risk aversion as well.
The incorporation of consumer behavior concepts into traditional real estate study in these and
other areas will improve understanding of individual decision-making in a real estate context.
This understanding will lead to better explanations and predictions in real estate markets and, as
a result, greater success in the marketplace.

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ANNEXURE

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BIBLIOGRAPHY

http://www.ibef.org/industry/indian-real-estate-industry-analysis-presentation

http://www.crisil.com/star-ratings/cities/rated-projects-kanpur.html

https://www.realtyfact.com/factors-boosting-lucknow-real-estate-market/

http://www.business-standard.com/article/companies/lucknow-metro-to-boost-realtymarket-113070400735_1.html

http://www.earthcon.co/

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QUESTIONNAIRE
Personal Details
NAME:OCCUPATION :GENDER:FAMILY SIZE :CONTACT :
E-MAIL:NO. OF EARNING MEMBERS:ANNUAL INCOME:
1. Do you have any plan to purchase residential property in Lucknow?
Yes

No

2. What is your present type of property?

Ownership

On rental

Others

3. In which city would you prefer to purchase residential properties? Why?

Lucknow

Any Other city

4. Which factor do you take in to consideration while purchasing residential properties? (Choose
any one)
Location

Price

Transportation facility

Accessibility to market

Others ___________________________________________

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5. Which parameters do you take in to consideration while selecting a residential property?
(Allow to multiple choice)
Brand Name

Quality

Space (sq. ft)

Facilities

Interiors

Schemes

6. Which other construction company / industry are you aware of other than EARTHCON?
(Open ended)
____________________________________________
____________________________________________
7. Kindly Indicate the source of information that you consider for property purchasing? (Choose
any one)
Hoarding

Newspapers

Agent

Relatives

Others
8. Are you aware of various schemes offered by EARTHCON?
Yes

No

If yes what is your opinion,

Very Good

Good

Average

9. During which duration of the year normally would you like to purchase residential properties?
Jan. to Apr.

May to Aug.

Sep. to Dec.

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10. What type of

residential property you would like to purchases?

1BHK Flat

2BHK Flat

3BHK Flat

Bungalows/Row House

Others

11. What will be your mode of purchase of residential property?

Home Loans

Lum sum

Installments

Others
__________
Signature

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