PROJECT REPORT

ON

FEASIBILITY STUDY OF A NEW RESIDENTIAL CONSTRUCTION SITE AT PRAHALADNAGAR

IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF THE PROJECT STUDY COURSE OF TWO YEAR (FULL TIME) M.B.A. PROGRAMME

PROJECT GUIDE: PROF JUHI SHAH

SUBMITTED BY: CHETAN CHOTAI (8019) NEHA PODDAR (8078)

SUBMITTED ON: 20TH MARCH 2010

N.R. INSTITUTE OF BUSINESS MANAGEMENT AHMEDABAD 2008-2010

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CERTIFICATE
N.R. INSTITUTE OF BUSINESS MANAGEMENT (GLS-MBA)

This is to certify that Mr. Chetan Chotai Roll no. 8019 and Miss Neha Poddar Roll no. 8078 students of N.R. Institute of Business Management (GLS-MBA) have successfully completed the grand project on FEASIBILITY STUDY OF A NEW RESIDENTIAL CONSTRUCTION SITE AT PRAHALADNAGAR in partial fulfilment of the MBA programme of the Gujarat University. This is the original work and has not been submitted elsewhere.

Date: - 20th March 2010

PROF. JUHI SHAH

Place: - Ahmedabad

DR. HITESH RUPAREL

PREFACE
In todays competitive environment, survival of the fittest is the new motto. That is why its necessary that the theoretical knowledge is accompanied by practical knowledge. In an MBA programme, project study forms an important and an integral part. It helps in bridging the gap between the two main important aspects the theoretical as well practical knowledge. The real estate development sector encompassing the residential townships, commercial offices, IT parks, shopping malls, entertainment centers, multiplexes, hotels and restaurants, industrial buildings, factories and government buildings is witnessing an unprecedented growth. There is a spurt in suburban development of real estate for mixed use of land including residence, office, retail shops, schools etc. Real estate sector in India is the second largest employment generator next only to agriculture. About 250 ancillary industries directly or indirectly depend on real estate activity. The GDP contribution of this sector at current prices is approx. 6.5% or Rs.1, 37,000 crores i.e., over 30 billion US dollars. Indian realty sector is estimated to grow from US$ 15 billion in 2005 to US$ 90 billion by 2015. Similarly the commercial property market has compounded annual growth rate of over 30% during the last 5 years across major cities in India along with a phenomenal increase in demand for office space. Ahmedabad, Indias seventh largest city is experiencing a tremendous growth in its real estate sector. The demand for property has been witnessing a steep rise and this has resulted in the escalation of the number of real estate investments. Though the city has a vast potential, it has certainly not made the kind of waves that Pune, Hyderabad or Kolkata have in recent times. That may just be the reason to take a serious look at it while land prices are affordable. Prahaladnagar area in Ahmedabad has created a buzz for all the real estate players with majority of them coming up new and innovative concepts relating to residential and commercial property.
This report is made with the intention of understanding the real estate sector in Ahmedabad with special emphasis on Prahaladnagar area and To check the feasibility of commencing a new construction site at Prahaladnagar, Ahmedabad . We have done work to the best of our knowledge and sincerity. In spite of our best efforts, there may be errors or omissions and commissions in the

project for which we take full responsibility

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ACKNOWLEGEMENT
A successful project is fruitful culmination of efforts of many people, some directly involved, and others who have quietly encouraged and extended their support, while being in the background. We take this opportunity to extend our deep sense of gratitude and heartfelt thanks to all those who have helped us directly or indirectly during the course of our project. First of all, we would like to thank our project guide Ms. Juhi Shah for her invaluable support and guidance throughout the semester. Lastly I would like to thank my institute, N.R. institute of business management including all the staff members and participants for providing their assistance for the project.

DATE: 20-03-2010 PLACE: AHMEDABAD

Chetan A Chotai (8019) Neha P Poddar (8078)

EXECUTIVE SUMMARY
India Real Estate is the second largest industry next only to agriculture in terms of the contribution it makes to the gross domestic product (GDP) and the employment generation. Moreover, its share of contribution to the countrys GDP is expected to increase only in the years to come. According to a report, India is one among the four countries (the other three being Brazil, Russia and China) that are likely to achieve a much faster growth rate in the domain of property development and housing construction activities as compared to the UK and US real estate markets. The BRIC report, as it is called, has also projected a higher real estate investment over a period of the next five years. The forecast for the year 2010 has put a significant portion of the Foreign Direct Investment (FDI) towards investment in the Indian real estate market. Some of the leading real estate developers that have made a mark in India include corporate names, such as Sahara India, Aditya Birla, Tata, Godrej and Reliance Group, to name a few. Apart from that, there is a whole list of real estate developers that have given a new dimension to the housing and infrastructure development and placed India on the map of World real estate. Some of these builders and property developers include the names of DLF, Emaar MGF, Ansals, Raheja, Omaxe, Shipra, Arun Dev, Eros, JayPee, TDI, Prestige, Parsvnath, Vatika, Unitech, Vipul, Eldeco, Mapsko, Triveni and Kumar, to name just a few.

Moreover, every state and some of the major cities of the countries have housing or development authorities that build and provide affordable housing solutions to home seekers from lower- and middle- income group. The most sought after housing authorities and their latest residential projects in India include Delhi Development Authority (DDA), Maharashtra Housing & Area Development Authority (MHADA), Ghaziabad Development Authority (GDA), Haryana Urban Development Authority (HUDA) and Lucknow Development Authority (LDA), just to mention a few. Ahmedabad, Indias seventh largest city is experiencing a tremendous growth in its real estate sector. The demand for property has been witnessing a steep rise and this has resulted in the escalation of the number of real estate investments.

Builders in the city are finally catering to the demand of the middle income group, with affordable housing in the range of Rs 10 lakh to Rs 25 lakh for a two or three bedroom-hallkitchen (BHK) flat. Up till now, plenty of high-end apartments were available in the above-Rs 50-lakh range and those worth less than Rs 5 lakh would have to come up in the villages. The gap between Rs 5 lakh and Rs 10 lakh is huge but it is gradually being filled up. The new areas of Ahmedabad are been explored by the builders as there is hardly any place left in the heart of the city. The builders are moving toward the suburbs like Prahaladnagar, Thaltej, Bopal, Chankheda and many such areas to launch their prestigious and concept based design schemes. These locations are very well connected to the various other areas of Ahmedabad and are surrounded with lush greenery all around. The inclination of the customers towards these areas is increasing and so the builders are tapping these opportunities that are present. As a result in the current phase we can they see the launch of very extravagant schemes in this area. Moreover, the concept of Affordable housing catering to the middle income group is peaking up in the city. Builders are providing 2bhk or 3bhk flats in the most affordable prices that would suit the pockets of the middle income segment. Along with providing affordable housing the builders are providing world class amenities in their schemes keeping the affordable housing in mind. The project aims to conduct the feasibility study of the new Residential Construction site that is coming up at Prahaladnagar. As a large number of projects are coming up in this area the feasibility study of any new proposed project becomes necessary. The feasibility study includes the financial, marketing and the technical analysis. Our focus was only on the financial and the marketing feasibility the technical feasibility is outside our scope of study. The project was started with a descriptive research. The research included the various revenues and the expenses that would be there in the proposed project. The duration of the completion of the project was calculated and on the basis of that the various costs and the receipts were estimated. On the basis of the various figures, the projected balance sheet, Income statement and the cash flow statement was prepared. After the projection was done in order to check the feasibility NPV of the project was calculated.
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After the financial feasibility, the exploratory research started. The questionnaire was used as an instrument for the exploratory research. This research was used to find out the various factors that affect the new property buying decisions of the customers. In addition to that the review of the customers for the Prahaladnagar area was also taken and the rates in which they would prefer to buy affordable housing in that area. After the study of both the financial and the marketing feasibility the correlation was developed as to whether it is feasible to go ahead with the project or not. The totally feasibility was conducted and the result was derived. The all the figures and the statistics that were necessary for the calculations in the financial feasibility are being taken as per the rates that were best available in the market. And the readymade information regarding the things that would be consumed were provided by the company who gave us the opportunity to go for this project. The marketing feasibility was done in the form of Questionnaires. The primary data was collected by the various walk-ins that are there in the various construction sites in the upcoming area. The feedback obtained from these questionnaires was then used for further analysis using SPSS software. From the research we can say that the new proposed project is feasible both financially and in marketing terms. The NPV of the project is positive thus giving a sign that the project can be started and undertaken. Through the marketing analysis customers gave highest preference to the Prahaladnagar area and are ready to buy the flats in the price range that is being proposed in the project. This Executive Summary is the highlight of the whole project report to get more detail, please go through the report.

CONTENTS

1.

Research Methodology 1.1 Main Objective 1.2 Sub Objective 1.3 Research Study 1.4 Research Method 1.5 Limitations 1.6 Data Sources 1.7 Sample Design 1.8 Tool for Data Analysis

9 10 10 10 11 11 11 12 12 13 14 15 16 17 28 31 33 35 38 42 45 64 121 123

2.

Industry Overview 2.1 Introduction to Real Estate Industry 2.2 Key Drivers of Real Estate 2.3 Real Estate Market 2010 2.4 Top Real Estate Players in India 2.5 Global giants in Indian Real Estate Sector 2.6 Changing Scenario of Real Estate in Ahmedabad 2.7 Current Real Estate Projects In Ahmedabad

3. 4. 5.

Scope of Study Introduction to Poddar Group Analysis 5.1. Financial Analysis 5.2. Marketing Analysis

6. 7.

Findings Conclusion BIBLIOGRAPHY ANNEXURE: Questionnaire for Descriptive research

1. RESEARCH METHODOLOGY

1.1 Main Objective

Important objectives of the study are:y

To conduct the feasibility study of the new residential construction site at Prahaladnagar.

y y

To financially study the feasibility of the upcoming project at Prahaladnagar To analyse the various preferences of the customers regarding their buying decision for a new property.

1.2 Sub Objective

Sub Objectives of the research are recognized as below:y

To find out the preferences of the customers regarding the New Prahaladnagar area in Ahmedabad.

Importance of the various factors that affect the purchase decision of a new residential through a consumer survey.

1.3 Research Study

The scrutiny was basically to find out the feasibility of the new residential site at Prahaladnagar. Prahaladnagar being the new upcoming area a lot of projects are launching or are in the pipeline for launching. The main crux of the study is to find out the feasibility study of one such residential construction site at Prahaladnagar. The research study includes both the financial and the marketing feasibility of the new construction project. The financial study inculcates the projected balance sheet, profit and loss account and the cash flows of the project over a period of time. In order to check the feasibility study we also calculated the NPV of the project. In order to unfold the picture, marketing feasibility of the upcoming project was also done. The sample was selected in order to narrate the non fictitious story of the factors that the consumers take care for while selecting a new property and to find out the opinions of the people for the New Prahaladnagar Area. The sample size aroused as or due to the limitation of the research. These consumers were surveyed at various construction sites in the most upcoming areas of Ahmedabad mainly the walk ins that were there on these sites where they were asked questions related to the topic and the questionnaire was filled up.

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1.4 Research Method

The research is both exploratory and descriptive in nature. The exploratory research deals with where the researchers have found the factors that have led to the growth of the real estate sector in India and in Ahmedabad especially. It also includes the various factors that are included in both the financial and the marketing feasibility. With the help of the research obtained through explorative research, Prahaladnagar area which is an upcoming area in Ahmedabad was chosen and in that a quantitative analysis and a descriptive research with the help of a structured questionnaire were done in order to know the Feasibility study of a New Residential Construction site at Prahaladnagar.

1.5 Limitations
Research method that was applied was questionnaire and so all the limitations related to the questionnaire also accompanied the study. Some of the limitations of the questionnaire and their study were: a) Due to the constraint of the demographics the analysis for the potential prospects from each of the area of Ahmedabad couldnt be re4ached through. b) The method that we have used for the financial analysis is not my expert analysis its on the basis of my academic knowledge there can be other methods too for analysing the feasibility.

1.6 Data Sources

Primary sources of data: Questionnaires Secondary sources of data: It was collected in form of comprehensive literature along with the use of internet for published research papers in the same sector of the present research done.

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1.7 Sample Design

Sampling Geography: Upcoming areas of Ahmedabad Sampling Frame: customers who are looking to purchase a new house Sample size: 200 Sampling type: Convenience Sampling

1.8 Tools for Data Analysis

For financial analysis the Discounted Flow Method was used and for the Questionnaire chisquare and cross tab analysis was applied to remove the lines of confusion and to clarify the picture. Computer software Statistical Package for social Science (SPSS 7.0) was used to analyze the data.

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2. REAL ESTATE INDUSTRY OVERVIEW

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2.1.

INTRODUCTION TO REAL ESTATE INDUSTRY:

India Real Estate is the second largest industry next only to agriculture in terms of the contribution it makes to the gross domestic product (GDP) and the employment generation. Moreover, its share of contribution to the countrys GDP is expected to increase only in the years to come. The GDP contribution of this sector at current prices is approx. 6.5% or Rs.1, 37,000 crores i.e., over 30 billion US dollars. Similarly the commercial property market has compounded annual growth rate of over 30% during the last 5 years across major cities in India along with a phenomenal increase in demand for office space. To be more precise, the next five years will see a rise of six percent from its present share of five percent contributed towards the GDP. The size in terms of total economic value of real estate development activity of the Indian real estate market is currently US$40-45bn (5-6% of GDP) of which residential forms the major chunk with 90-95% of the market, commercial segment is distant second with 4-5% of the market and organized retail with 1% of the market. Over next five years, Indian real estate market is expected to grow at a CAGR of 20%, driven by 18-19% growth in residential real estate, 55-60% in retail real estate, and 20-22% in commercial real estate.

According to a report, India is one among the four countries (the other three being Brazil, Russia and China) that are likely to achieve a much faster growth rate in the domain of property development and housing construction activities as compared to the UK and US real estate markets. The BRIC report, as it is called, has also projected a higher real estate investment over a period of the next five years. The forecast for the year 2010 has put a significant portion of the Foreign Direct Investment (FDI) towards investment in the Indian real estate market.

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2.2 KEY DRIVERS OF REAL ESTATE

y

Economic Growth GDP growth rate of ~8-8.5% Double-digit income growth rate for the next 3-4 years Income growth should improve affordability, driving demand for residential units Lower interest rates

Demographics and Urbanization Positive demographic trends - middle class or the aspirers to show a CAGR of 10.4% to reach 124m in 2013 compared to 46m in 2003 Urbanization UNDP forecasts urban population will constitute about 40% of total population by 2030 from the current about 28% Indian household families moving from joint families to nuclear families

Favourable Interest Rate and Fiscal Incentive Housing loan interest rate, despite the recent rise, continue to remain low compared to 15-16% in the 1990s

Growth in the next decade should come from Tier II/III cities Higher real-estate prices in Tier I cities coupled with manpower and infrastructure issues may force companies to look at Tier II and Tier III cities for expanding their operations o Tier I cities- Mumbai, Delhi and Bangalore o Tier II cities- Kolkata, Hyderabad, Pune o Tier III cities- Nagpur, Ahmedabad, Indore, Lucknow, Jaipur Within the next three to six years, towns and cities such as Chandigarh, Jaipur, Mysore, Indore, Coimbatore, Vishakhapatnam, etc are likely to see an increase in real-estate demand from the IT/ITES sector According to Nasscoms projections, Tier II and Tier III cities, which account for about 29% and 5% of the total commercial space in FY07, respectively, will increase to 44% and 20% at the end of FY17

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2.3 Real Estate Market 2010

When the industry comprising the IT and ITES sectors grows, the demand for commercial properties will rise, along with the ever-increasing demand for residential houses that has always kept the momentum of the housing development market in motion in India. The year 2010 is all set to witness an extraordinary rise in commercial real estate fulfilling increased demands for office space and retail industry.

Though the demand for commercial real estate has increased over the years, the residential property market drives the builders and other professionals engaged in the industry for more in construction and service related activities. The Tenth Five Year Plan has put the gap in the demand and supply of housing units for the current year to over 22.4 million units, which is likely to become 90 million over the next 10 years. The housing construction industry is thus geared to meet the whopping demand that the country is going to face in this segment in future.

As the demand is more for affordable homes, the state-sponsored housing authorities have come to play a major role in fulfilling the housing requirements for lower- and middleincome groups. A number of housing solutions in the forms of 2, 3 and 4 BHK flats, studio apartments, condos and town homes are being created with active support from the private construction companies and real estate investors. The current scenario has given an impetus to the ongoing residential construction boom by government housing authorities as well as private builders across the major locations of the country including all Tiers-I and Tier-II cities.

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2.4. Top Real Estate Players Of India

y DLF INDIA
DLF Limited is India's largest real estate company in terms of revenues, earnings, market capitalization and developable area. It has a 62-year track record of sustained growth, customer satisfaction, and innovation. The company has approximately 238 msf of completed development and 423 msf of planned projects, and has pan India presence across 30 cities. DLF's primary business is development of residential, commercial and retail properties. The company has a unique business model with earnings arising from development and rentals. Its exposure across businesses, segments and geographies, mitigates any down-cycles in the market. DLF has also forayed into infrastructure, SEZ and hotel businesses. DLF pioneered the retail revolution in the country and brought about a paradigm shift in the industry by redefining shopping, recreation and leisure experiences with the launch of City Centre in Gurgaon in 2000. The Retail Malls business is a major thrust area for DLF. Currently, DLF is actively creating new shopping and entertainment spaces all over the country. The company has land resource of 92 msf for office and retail development, with 17 msf of projects under construction. Built on a foundation of strong lineage and an established reputation, DLF Home Developers, the residential business group of DLF, has been a trendsetter in contemporary urban development and housing. These developments have always been all embracing with comprehensive solutions for eminent and quality living. DLF has pioneered some of the best-known urban housing and retail destinations in Delhi including South Extension, Greater Kailash, Rajouri Garden, Model Town, Hauz Khas and Kailash Colony. Featuring International standards geared to serve customer needs, the Group's complexes are truly a reflection of quality living and contemporary lifestyles. The product categories of the Group deliver the synergistic strengths of good architecture, appropriate designs, impressive aesthetics and safety features.

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NEW PROJECTS

DLF Phase III

Capital

Greens,

New Hyderabad

City

Heights

DLF Panchukla

Valley

The Gurgaon

Belaire

DLF Gurgaon

Park

Place

DLF Goa

River

Valley

DLF Phase II

Capital

Greens,

DLF Shivaji Marg, Delhi

Capital

Greens,

Westend BTM Bangalore

Heights,

New DLF Kakkanad

Town

Heights

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Express DLF New Gurgaon

Greens

Gardencity DLF New Indore

Gardencity DLF OMR, Chennai

Townhouses New Town Heights

and

Independent

Floors

New Gurgaon

Town

Heights

New DLF Rajarhat, Kolkata

Town

Heights

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y RAHEJA GROUP
K Raheja Corp is a success story spanned across decades and continues to achieve higher targets relentlessly for quality performance and service in diverse fields of real realty business, hospitality sector and retailing outfits.

The group has made an impact on the supply side of the modern day living. A style that has been the dream of new class of consumers, a style encompassing the whole range of consumption pattern of the young and the upcoming consumers that has become synonym with the brand K Raheja Corp.

The group has pioneered the trend of setting world class hotels and convention centres across the country with enhanced facilities to meet the business and leisure needs of the international and domestic traveller.

The higher standards set by the group in its pursuit to position India on par with the developed economies of the world and with a vision to be and remain at the commanding height of Real Estate Business. Sensitivity to consumer needs is the inspiration to creating distinct home. Over the years, we have created projects that add real value by offering a host of amenities that enhance the quality of life. One excellent example is like the illustrious Raheja Vihar: a luxurious, self-contained township in Mumbai. This township was the proud recipient of 'The Clean and Green Mumbai' Mayor's Cup. Yet another prestigious venture is Mindspace. It is India's most advanced and luxurious business cum residential community, designed with the help of global consulting expertise and attention to the minutest detail.

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Their proposed development at Mahalaxmi, Mumbai is specially created for a pleasant urban lifestyle, with hotel - like ambience and well - appointed facilities. Each developments of the Raheja Group offer the best of amenities reflecting the unique class and quality that K. Raheja Corp stands for, and thus making them the most livable homes available. RESIDENTIAL PROJECTS COMPLETED BY RAHEJA TILL NOW
y y y y y

Maple Leaf, Mumbai Raheja Vistas, Mumbai Raheja Vistas, Pune Vivarea, Mumbai Raheja Vistas, Nacharam, Hyderabad

PROPOSED SITES

y y y y

Worli, Mumbai Vivarea Kormangala, Bangalore Villas & homes - Pirangut, Pune Villas & homes, Kadamba, Goa

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y PARSVNATH BUIDERS
There are few parallels in the annals of the Indian real estate and construction industry that emulate the success trail blazed by Parsvnath Developers Limited. Over the past two decades, the company has emerged as one of the most progressive and multi-faceted real estate and construction entities in the country. Through the years, Parsvnath have stayed true to their commitment to `building a better world by transforming barren tracts into landscaped green belts housing world class commercial, residential and recreational properties. Parsvnath is a company whose business philosophy lies in the commitment to creating architectural marvels using state-of-the-art technology and global architectural, construction and business practices. They are passionate about providing cost-effective and holistic solutions for their customers while creating and adding value for their partners and stakeholders. The unwavering focus on these factors catapulted Parsvnath Developers Limited into the top echelons of the Indian Real Estate and Construction Industry in 2007. With a pan-India presence in over 47 cities in 16 states, they are steadfastly focused on continuing to create and build dreamscapes that transform lives and the world around us be it through contemporary residential spaces, state-of-the-art office complexes, affordable housing, luxurious, shopping malls and hypermarkets, posh hotels, futuristic multiplexes, and ultra modern IT Parks and special economic zones. In the last two decades, the group has created edifices of magnificence through the length and breadth of the country by successfully completing 39 projects. Today, Parsvnath with its high commitments has become synonym for perfection, innovation, customer satisfaction, transparency and developing high end luxury, affordable & value for money projects. Parsvnath Developers Limited is an ISO 9001, 14001 and OHSAS 18001 certified company.

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FORTHCOMING PROJECTS Group Housing Projects Projects Parsvnath Royal Floors Parsvnath Prominence Project Located at Panipat Project Located at Khekhra Group Housing at Kundli Group Housing at Chennai Group Housing at Sonepat Townships Projects Parsvnath City Parsvnath City Location Rohtak Kurukshetra Karnal Location Goa Bhiwadi Haryana Uttar Pradesh Haryana Tamil Nadu Haryana

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y PACIFICA COMPANIES
Pacifica Companies is multi-talented Real Estate Property Development Company. Founded in 1978 by Ashok Israni, Pacifica's vast Real Estate portfolio includes Hotels, Office Buildings, Industrial Buildings, Condos, Retail Shopping Centres, Apartment projects, Mixed-use Developments, Residential Communities, and Land Development Projects in US as well as in India. Corporate headquarter for Pacifica Companies is located in San Diego, California and other offices in Austin, Tampa and Riverside. Pacifica companies started its Indian operation in 2004-05, with head office in Ahmedabad & regional offices in New Delhi, Bangalore and Hyderabad. These offices are well poised to meet their vision of establishing a national leading position in the real estate industry, spanning the spectrum of all real estate development. Pacifica brings along with itself 30 years of experience in real estate to India. With the rationalized Foreign Investment Policies in India, the real estate/property developer has targeted several Indian Cities for its projects. There are a lot of world class Residential sites that are coming in Ahmedabad. With innovative designs and the luxuries customized to the needs of the customers PACIFICA companies are accustoming to the needs of the customers.

Ahmedabad Residential Project The Pacifica Ahmedabad Residential Project is being developed in close proximity to the Sarkhej - Gandhinagar highway on the rapidly developing western parts of the city. This Luxurious Apartment project is located at Prahaladnagar which is one of the most affluent area Ahmedabad.

Luxurious Condominiums with all the amenities like swimming pool, Club House with gym, Landscaping, gar etc is planned. Lots of open and green spaces found in the Project.

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OMAXE GROUP

Incorporated as Omaxe Builders Private Limited in 1989, to undertake construction & contracting business, the company changed its constitution to a limited company known as Omaxe Construction Ltd., in 1999. The name of the company has now changed to Omaxe Ltd in 2006. Omaxe was founded by Shri. Rohtas Goel, a first generation entrepreneur, a civil engineer by qualification and a visionary. With over two decades of experience in construction and real estate development, Rohtas Goel, as Chairman & Managing Director of Omaxe Ltd., has been at the forefront of the real estate industry, following its motto Turning Dreams into Reality through building world class residential and commercial projects. As a civil construction and contracting company, Omaxe successfully executed more than one hundred and twenty industrial, institutional, commercial and residential projects for a number of prestigious Indian private, public sector and Multinational's clients such as Amity University, LG, Pepsi, Samsung, Wave Cinemas, National Brain Research Centre, P.G.I. M.E.R, Apollo Hospitals and Delhi High Court. To capture the opportunities offered by the growing real estate market in India, Omaxe entered the real estate development business in 2001. In the span of a few years, Omaxe Ltd. has experienced exponential growth and success, crowned by its landmark IPO oversubscribed by 68 times in 2007, and is now amongst the largest public-listed real estate development companies in India. By the end of 2007, the company has completed and delivered eleven projects consisting of eight residential, one integrated township and two commercial, covering 5.6 million sq. ft of area. The Forest, The Nile, NRI City, Omaxe Connaught Place, Wedding Mall, House 2 Home, Omaxe Plaza, Omaxe Arcade, Park Plaza, Pearls Omaxe, Omaxe Jasola, Omaxe Novelty Mall, Omaxe Terminal Mall and Omaxe Mall - Ludhiana are some of the milestone projects of the company.

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The company currently has fifty four projects under development, including hotels: twenty three group housing projects, sixteen integrated townships, fourteen shopping malls and commercial complexes. These fifty four projects cover a total of over 156 million sq ft of area and are located in 31 towns in 10 states in northern, central and southern India. In addition to these, Omaxe is developing a Special Economic Zone on 12, 500 acres in Alwar Rajasthan. Omaxe is also spreading its wings off shores and has acquired land in Dubai through a wholly owned subsidiary. Thanks to its strong experience in construction, Omaxes uniqueness also lies in the fact that the company doesn't give its projects on sub contract: while assuring timely completion, this also allows keeping pace with the progress in construction technology, helping to give clients value for money. Today, OMAXE enjoys a reputation of being one of India's leading real estate developers with an indelible focus on customer satisfaction. Omaxe has adopted quality system standards that integrate technological and design innovations with a strong technical base to provide state-of-the-art real estate options. Omaxe has also been the first to:
y y y y

offer Penalty Clause, introduce Sample Flats concept, offer Theme Malls, like the Wedding Mall, House 2 Home Mall, etc., offer ready-to-move-in homes.

Besides this, Omaxe is the first to have created and implemented the concept of Eco Friendly City, integrating Environment Protection Measures in all projects, with a defined implementation process For Omaxe, environment protection and innovative architecture and practices are the standard of today and tomorrows in real estate development.

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Residential Omaxe Group is one of the leading real estate development and construction company with footprints in Townships, Group Housing, Commercial-Shopping malls, Office spaces, Hotels, Bio-Tech Parks, IT Parks, SEZs and a presence in 31 towns in 10 states in northern, central and southern India. There are around 40 group housing and integrated township projects, which are either under construction or planning stage. Omaxe, the most innovative developer, was first to introduce the concept of sample apartment, the concept of ready-tomove-in homes and the concept of luxury apartments & penthouses. They wish to invite prospective customers who intend to develop their manufacturing and processing facilities as part of this dedicated park. The employees of such facilities would be largely benefited as they may walk to work while living in this modern and landscaped township.

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2.5. Global giants in India's real estate sector:

Global real estate business houses like the Philippines-based Ayala, and Signature group, Och-Ziff Capital, EurIndia and Old Lane from Dubai are keen on sizeable investments in India. And, investors in the UK, US, Israel, Malaysia and Singapore are also eyeing the real estate sector in India. Tishman Speyer of USA and ICICI has formed a Special purpose vehicle called TSI ventures and started the real estate development in the south India. US-based global investment bank Goldman Sachs and Unitech, the largest listed real estate company in India, will set up a special purpose vehicle (SPV) with a corpus of US$ 208.7 million DLF Ltd is forging a 50-50 joint venture with Nakheel, a large property developer of the UAE, for two integrated townships in India at a whopping investment of US$ 10 billion Zurich based Credit Suisse, the world's leading financial house, is in the process of finalizing on a US$ 1 billion fund to invest in India Dawnay Day International, the US$ 10 billion UK-based investment company, plans to invest US$ 1.5 billion in the next couple of years Hilton Hotels Corporation (HHC) announced a joint venture company with DLF Ltd to develop and own 75 hotels and serviced apartments over 7 years

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REAL ESTATE AHMEDABAD

Ahmedabad, India's seventh largest city is experiencing a tremendous growth in its real estate sector. The demand for property has been witnessing a steep rise and this has resulted in the escalation of the number of real estate investments. The city is increasingly becoming the next hot destination for domestic and alien investors, thanks to burgeoning education centres, IT parks, and other manufacturing industries. Since 2000, the city has transformed through the construction of skyscrapers, shopping malls, and multiplexes. Ahmedabad has proven to be an ideal city attracting residential and commercial property due to excellent infrastructure. The city commits to meet expectations of investors. The State Government has envisaged of developing Ahmedabad into a world-class city through reforms and infrastructure development. It forces to make the city clean, liveable, and productive has translated into the setting up IT parks in and around the city. Since the declaration of Ahmedabad as a mega city in the last Union Budget, the real estate developers have geared up. The western parts of the city are booming areas for residential properties in the city. Real estate has been charged by improvements in road and public transportation and other infrastructure. Bungalows and apartments are coming upon the new four-lane road developed from SG Road to the new Sardar Patel Ring Road. As the every city of India, the size of the residential market has been estimated at over Rs 1500 crores per year. The residential property has been risen 10% to 15% on an average. According to industry experts, it will go up to 20% to 40 %. The residential rates have been increasing at alarm rate. The land prices in and around the city has doubled because of better connectivity and wide roads. Market sources predict that around Rs. 700 crore will be investing in mall segment in the next two years. Ahmedabads commercial realty will experience a supply-surge of 3.6 mn sq ft in 2009-11 against the estimated demand of 2.5 mn sq ft; the oversupply will stabilize commercial realtys outright values at current levels in 2010. This is a key forecast of the 2010 realty report issued by the Credit Rating and Information Services of India Ltd (Crisil). Though a large number of Special Economic Zones (SEZs) have been planned in Ahmedabad and
29

Gandhinagar, the report does not expect them to come up in the 2009-11 period. As for the oversupply in commercial realty, it has affected the retail lease rentals; that is the reason why the rates are expected to settle down at current levels. Retail lease rentals have declined sharply on the SG Road, raising the vacancy levels. The average lease rentals on the SG Road declined by 20% during the March - November period in 2009 and are expected to go down even more in the future. Crisil estimates that 1.9 mn sq ft of retail supply will be available in the market in 2009-11, but the planned supply is 3.4 mn sq ft. A majority of the upcoming malls are being developed in western Ahmedabad. At any rate, retail lease rentals are expected to stabilize at current levels with a gradual pick up in transactions being expected in 2010. Lakshmi Narayanan, the president and CEO of Real Estate Bank International Ltd, (REBI), a national realty consultancy, agreed that there was an oversupply in the citys commercial space. He said, however, there were chances of growth in the coming period. Experts believe that the oversupply will unleash cutthroat competition and cause developers in areas that lie far from the central business district (CBD) to offer lower rates. In the circumstances, developers are also expected to work towards community-centric growth, focusing on value-for-money products. The report also states that commercial realty in Ahmedabad is being led primarily by sectors such as banking, financial services and insurance (BFSI); telecom; pharma; and textile. CAPITAL VALUE Locality Apartment (Rs/sq ft) Feb10 Central (2) 1100-3000 North (2) 1100-2200 South (3) 2000-3600 West (11) 1700-4000 Others (4) RENTAL VALUE Locality Central (2) North (2) South (3) West (11) Others (4) 2500-4500 Apartment 2 BHK (Rs/month) Feb10 6000-10000 3000-8000 6000-15000 4000-15000 6000-15000

Plot (Rs/sq yard) Feb10 10000-15000 8000-90000 40000-75000 20000-75000 25000-50000

30

2.6. CHANGING SCENARIO OF REAL ESTATE IN AHMEDABAD

The Ahmedabad realty market is gearing up to offer affordable houses for the middle income group, and it is happening for the first time in many years. Builders in the city are finally catering to the demand of the middle income group, with affordable housing in the range of Rs 10 lakh to Rs 25 lakh for a two or three bedroom-hall-kitchen (BHK) flat. Till now, plenty of high-end apartments were available in the above-Rs 50-lakh range and those worth less than Rs 5 lakh would have to come up in the villages. The gap between Rs 5 lakh and Rs 10 lakh is huge but it is gradually being filled up. The shift in focus has come about due to a bust in the retail industry as well as due to prices hitting the roof in the real estate sector. Between 2004 and 2007, real estate rates started to rise uncontrollably and increased so much that there were no buyers left and people postponed buying decisions, opting to wait for the prices to come down, he said. There is a huge rush of activity in the area between the Sarkhej-Gandhinagar highway (SG Highway) and SP Ring Road in Ahmedabad. This area has been notified as the R3 zone. This zone is only for bungalows with a minimum lot size of 1,200 sq yard. Only 15 per cent of the area is allowed to be built upon, so what we are watching in here are state-of-the-art bungalows. Many people who had large bungalows on 1,500 sq yards of land on CG Road and the area around it are raking it in today. The land price on CG Road right now is between Rs 60,00070,000 per sq yard. From here, most are moving to places like Prahlad Nagar on SG Highway or just beyond to areas like Bopal, Ambli, Shilaj, Bodakdev, Khoraj, Rancharda and Thaltej. There, at a fraction of the cost (compared to CG Road), they can get a four-bedroom high-end apartment or a five-bedroom independent bungalow. Newer residential areas in the R2 and R3 zones are very close to SG Highway, which is the main commercial hub at the moment. There are supermarkets and big malls on SG Road already, and more are being planned.

31

The residential development is mainly happening towards the west and some in the north side of the city. Though only a few townships have been announced as yet, what are catching up in Ahmedabad are small residential developments with bungalows or apartment complexes. Safal Parivesh Developers is another prominent name in the city. It is constructing a township near Prahaladnagar of 400 to 500 apartments of two to three BHKs. The area within the city has no land for construction of new buildings and the city is expanding in a circle, making the area inside the proposed ring roads attractive. The outermost ring road in the concentric circle is supposed to be completed by 2011. That makes the area surrounding it extremely attractive for buyers and sellers as it gives easy connectivity to the city. The Sardar Patel Ring Road area is the space to watch out for in the near future. With the hike in real-estate prices, most developers played it safe by halting projects and waiting for the slump to tide over. Some of them have begun construction again slowly and, rather than creating ambitious projects, are looking to offer affordable housing where bulk sale is possible. Today, people of all strata are looking for comfortable two to three BHK accommodations and everybody wants to save costs. So it doesnt look attractive to keep building expensive houses.

32

2.7. LATEST REAL ESTATE PROJECTS IN AHMEDABAD

Ahmedabad is known for its spending power and retail potential. It is a buzz with retail activities. Pantaloon Retail is planning to open its fifth central mall in Ahmedabad by 2009. Its retail chain, Big Bazaar will set up 12 more stores there. Pyramid Retail has signed up for property here. Liberty Shoes has set up Foot mart Retail and is opening its flagship store in Ahmedabad.

Ganesh Housing Ltd., which has constructed the first ever project to have earthquake resistant scheme plans to set up an IT park for Rs. 700 crore. The company which has a research and development team to analyze traditional and new technology has introduced WiFi enabled 'Smart Homes' with digital security and solar passive architecture. Multiplexes have been dotting the landscape of Ahmedabad. There are major projects under implementation.

Major builders in the city including N.G Developers, Navratna, BGP Builders and Saumya Constructions have their hands full in commercial projects. Other players looking at reaping the benefits in the real estate market are also big names like DLF, K Raheja Group, Unitech, Parsvnath and some others. Construction giant DLF is investing in a project that has been identified for urban infrastructure development in the city along with the Sabarmati riverfront project and integrated public transit system.

The Adani group is planning a Rs. 2000 crore plus mega township near Nirma University on SG highway. The Heritage Group has projects spread out around the city. They are planning a 200-bungalow scheme at Sola near the science city. These will be four-bedroom twin bungalows which will cost Rs 40 lakh (Rs 4 million) and above. On 40 acres at Koba on the way to Gandhinagar, Heritage has a farmhouse scheme with houses on 4,000 sq yard plots (Rs 1.5-1.75 crore -- Rs 15-17.5 million).

33

Ahmedabad with new kinds of planning is becoming a trendsetter of sorts .A golf housing community project situated close to the Nal Sarovar Bird Sanctuary will be the first of its kind. The 600-acre Kensville project will have residential plots on the fairways. It is not very highly priced. The rates vary from Rs.600 per sq yd to Rs. 1100 per sq yds for plots ranging from 1000 sq yds to 3500 sq yds.\ The most talked about Niho's Scottish Mall will be spread over an area of 4.5 lakh sq ft. at a cost of Rs. 180 crore. The proposed exhibition cum convention centre at Ahmedabad would involve investment of $9.2 million, which will further boost commercial activity in the city. Venus Projects is also doing an integrated township for which they are roping in a foreign architect. The 350-acre integrated township called Venus Metropolis is close to SP Ring Road and will have condominiums, twin bungalows and apartments in the range of Rs 20 lakh (Rs 2 million) and Rs 1 crore.

34

3. SCOPE OF PROJECT

35

SCOPE OF THE PROJECT

The Ahmedabad Real estate is right now in the boom stage. There is hardly any land that is available in the heart of the city and so the builders and construction companies are exploring new and new areas for the launch of the various commercial and the residential areas. Some of these upcoming areas which were unexplored before by the construction companies and builders are the Prahaladnagar, Vejalpur, Chankheda, Nikol, Bopal and many more to add to this list. Demand for the properties in these areas is increasing and to meet with the demands of the consumers many builders are coming with innovative concept based housing for these areas. Prahaladnagar area is the hotspot area right now and many builders are focusing on this area and launching their projects in that area. The scope of our project is confined to the Real Estate sector in Ahmedabad and in that too Prahaladnagar area of Ahmedabad and with a special focuses on the construction of the residential site in that area. Commercial property is excluded from our scope of the study our main focus would be on the residential real estate part and that too in Prahaladnagar are a only. All the legal documentations that are involved in the construction process is been excluded from the project. The scope is only limited to the marketing and the financial feasibility we have excluded technical analysis as it is beyond our knowledge and expertise and we would need the help of the civil engineers to do it. We have covered two kinds of feasibility Financial and Marketing Feasibility. The scope of the financial study is limited to the just the financials of the Project. For doing the feasibility study we were provided with the site at which the new project is being planned, so all the details in regards to the acquisition of the land are excluded from the study. The scope of the marketing feasibility is limited to the factors that affect the buying decision of the consumers regarding a new residential property with convergence of the new site that is planned at Prahaladnagar and to know the preference of the consumers for the New Prahaladnagar Area. The marketing plan of the construction site is excluded from the scope of the study.

36

The study could have been done in more depth but due to some limitations the project could not be further expanded to a greater extent. Thus, the boundary of the research project could not be further expanded to the technical analysis of the project, passing of the plan by AUDA, the marketing strategy of the site and various other factors that are related to the extent of the completion of the project. Thus the scope of the project is more than the limitations of the project.

37

4. INTRODUCTION TO THE PODDAR GROUP

38

PODDAR GROUP
Introduction
Poddar Developers was started in the year 1987 in Surat .The main activity of the group is to construct and sell residential units, offices and shop. During the past years, the construction activity was carried by different associated / sister concerns under the brand name of Poddar Group.

Promoters
Shri Pramod Poddar is a Commerce Graduate from the Gujarat University. He plays a key role in the planning of the construction activity and does the co-ordination work with various local authorities.

Shri Aashish poddar is a MBA Marketing from the University of Wales. He mainly looks after the marketing and selling of the various schemes / projects. Over the years he has developed vast relations and is instrumental in the success of the company.

Shri. Rajesh Poddar is a Commerce graduate. He is mainly involved in managing up purchase of Lands and managing Finance activities of the company. Smt. Usha Poddar is a commerce graduate.

39

Current Projects
Currently Poddar Group is carrying on construction in Surat & Ahmedabad. Following is the list of total on-going projects of Poddar Group.

Sr. 1 2 3

Project Names The Poddar Residency The Poddar Park Raj Shelly

Project Type Apartments Apartments Apartments

No. of Units 182 156 33

Past Projects
Over the past two decades Poddar Group has decisively changed the skyline of Surat City. Choicest location, perfect planning and immaculate implementation have ensured value for money for the consumers. Following is the List of some landmark projects implemented under the umbrella of Poddar Group. The list is only indicative and not comprehensive.

Sr. 1 2 3 4 5 6 7

Project Name MADHULIKA GREEN AVENUE TURNING POINT SILK CITY MARKET PODDAR AVENUE PODDAR PLAZZA PODDAR ARCADE

No. of units 110 250 270 600 77 75 360

Completion Year 1992 1998 1994 1996 2001 2003 2005

40

8 9 10 11

RAJ VILAS SWASTIK RESIDENCY RATNA ANSH ORCHID GREENS

86 104 78 292

2009 2009 2009 2009

Highlights (a) None of the buildings was damaged in the recent catastrophe of earthquake in year 2001 in Ahmedabad, Gujarat. (b) The Company has constructed maximum number of R.C.C. frame structure high-rise buildings in Surat. (c) Company is known for initiating projects in undeveloped and developed areas. Poddar Group is instrumental in the rapid development and expansion of areas like New city light, Vesu, and Bhattar Road & Ghod Dod Road etc.

41

5. ANALYSIS

42

The analysis of the project is divided into two parts:y y

Financial Feasibility Marketing Feasibility

In any construction project there are two main analysis that each and every builder does; it is first to check the financial viability of the project and the market acceptability of the project. Just the acquisition of the land at the proper place is not factor that would determine the success of the construction site. Once the land is purchased the builders they go for the various costs that are associated with the project. These costs range from the development rights to the expenses for labour, power and so on. A builder takes into consideration of all the costs that would be incurred, the inflow of the capital and then estimates the profit that the builder will earn from the project. The marketing feasibility mainly deals with the survey of the customers/consumers who are the major prospects of for the project that is planned to be launch. Through the marketing feasibility the builder or the construction company comes to know the demands and the requirements of the customers and after analyzing that the builder takes various inputs that help in the construction of the plan for the proposed project. Another important part to check the feasibility of the project is to check the technical analysis of the project through with the help of the civil engineers. These engineers help to design the various elevators of the proposed projects and bring out innovative concepts and designs that help the builders to provide better facilities to the customers. In our project we have covered only the Financial and the Marketing Feasibility. The technical feasibility is outside the scope of our project as we need civil knowledge for the same in which we are not experienced at all.

43

The project is proposed to be started at Prahaladnagar, Makarba road. The total are of the land is of 9289 sq.mt. The acquisition of the land was done by the company and so the details regarding the acquisition and the various financials pertaining to the acquisition are not included in the project. The project is proposed to be a residential project and in that a 2bhk and a 3bhk residential high rise apartments. The project will have 6 towers. In which 2 towers pertain to the 3bhk and the rest 4 are 2bhk towers. Each tower will be 12 storied and each tower will have 48 flats in it. The area of a 2bhk flat is 1064 sq.ft. and 1557 sq.ft. for a 3bhk and it is super built up. The value added features that are proposed to be provided in the new project are:y y y y y

Vitrified tiles in all living, dinning and the kitchen area. Ceramic tiles up to lintel level in the bathrooms Exclusive plumbing accessories from Jaguar Imported and modernized sanitary ware from Cera. 3 phase electrification concealed with copper wiring with modular switches.

The amenities that are proposed to be provided in the project are as follows:y y y y y y y y y y

Concept based elevation Gym Childrens play area Club house Designer foyer and automatic elevators Ample parking space Satellite DTH connection Intercom facility 24 hrs security Fire hydrant

Based on all these factors we have done both the financial and the marketing feasibility of the project.

44

5.1. FINANCIAL ANALYSIS

45

5.1. FINANCIAL FEASIBILITY

Financial Feasibility is a very important tool for any Infrastructure project because this study gives the total cost estimate of that particular project. This study becomes very critical in case of BOT (Build, Operate, and Transfer) projects because this type of projects totally based on Financial Feasibility Studies. Financial/Sponsoring Authorities has to decide whether project has to be done or not. The objective of financial analysis is to ascertain whether the proposed project will be financially viable in the sense of being able to meet the burden of servicing debt and whether the proposed project will satisfy the return expectations of those who provide the capital. While conducting a financial appraisal certain aspects has to be looked into like:

- Investment outlay and cost of project - Means of financing - Projected profitability - Cash flows of the project - Investment worthiness judged in terms of various criteria of merit - Projected financial position

46

FINANCIAL FEASIBILITY OF THE PROJECT:In our financial feasibility we have tried to give a detailed financial analysis including the Investment outlay and cost of the project, the profitability statement of the project, the projected cash flows, projected balance sheet and the projected profit and loss statement for the project. In order to make our analysis more accurate we have taken certain assumptions.

ASSUMPTIONS
y

The land is already been procured and so the procedure for acquiring the land and all the calculations pertaining to it are not included in the study. The land is situated at the Prahaladnagar Makarba Area.

All the figures that is the raw materials, labor and other figures are taken as per the most appropriate market prices.

The cost of capital is assumed to be 11.5%. It is at this percentage that the loan would be procured and the same is used for the NPV calculations.

In calculation of some of the figures pertaining to the project the help of the various members of the company was taken and under their guidance the figures were estimated.

The details regarding the no. of the flats and the no. Of blocks were being given by the company members and it is readily been taken from them.

The receipt from the customers is being assumed to be received from the fourth quarter of the first year. It is presumed that the bookings will start at that time only. The real figures might differ from the said ones.

The rates per unit of the flat have been derived after taking all the development expenses into consideration.

The interest has been calculated on the outstanding balance at the start of every month.

y y

It is presumed that the drawing power has been increased at the end of every month. All the partners have contributed equally in the project. So the profit distribution would also be equal between the partners.

47

Keeping all these assumptions in the mind all the calculations has been done. The assumptions have been taken which almost near to the market analysis but then too some deviations can be there.

PROJECT COST AND MEANS OF FINANCE

The first estimation in any project is done as from where the finance would be procured for the project. In this project the major source of finance are three:y

Partners capital contribution. All the partners are going to contribute equal amount of capital to the project. Receipt from members. The receipt from the members will start from the 4th quarter of the first year after the bookings are opened.

The third source of finance is cash credit. A loan of 1400 lakhs would be taken from the bank at an interest rate of 11.5%.

PROJECT COST AND MEANS OF FINANCE COST OF PROJECT

DEVELOPMENT RIGHTS CONSTRUCTION COST FINANCIAL COST CONTINGENCIES

RS. IN LACS
656.67 1945.41 431.42 50.00

TOTAL

3083.50

MEANS OF FINANCE
PROPRIETORS CAPITAL / UNSECURED LOANS RECEIPT FROM MEMBERS CASH CREDIT FROM BANKS 656.67 1026.83 1400.00

TOTAL

3083.50

48

ASSUMPTION STATEMENT
The total construction built up area i.e. saleable area is 353760. The total plot area is 9289 sq.mt. The total saleable area guaranteed is 3.54 of the total plot area and conversion of it into sq. yards (10.76) leads to the total saleable area. It is been proposed that there would be 6 blocks with a mix of 2bhk and 3bhk with 12 floors in each tower. The total no. of flats in each tower would be 48 flats. The total area for a 3bhk is 1557 sq. ft. and 2bhk is 1064sq. ft. All these assumptions are being done with the assistance of the company members as it includes some technical calculations too. In the calculation of the saleable area the FSI and all are taken into consideration which comes into the technical analysis.

ASSUMPTION SHEET Total Construction Area (Built Up Area) Block wise

A B C D E F 48 48 48 48 48 48

No. of flats

Area

Total Area

In sq.feet
1557 1557 1064 1064 1064 1064 74736 74736 51072 51072 51072 51072

TOTAL

288

353760

49

GROSS SALES REALIZATION

In gross sales realization the total income from the sales of the flats is being taken into consideration. There are 6 blocks two of which are 3bhk and the rest 4 are of 2bhk. Each block has 48 flats and the rate per unit of the 3bhk that is been estimated is 17.13 lakhs and that of the 2bhk is being proposed to be of 11.70 lakhs. The selling price at which the company is planning to sell it is Rs. 1100 per sq. ft. so by multiplying the rate per sq.ft with the area derives the following figures.

GROSS SALES REALISATION Particulars No. of Flats Rate per Unit (Rs. In Lacs)
48 48 48 48 48 48 17.13 17.13 11.70 11.70 11.70 11.70

Total value (Rs. In Lacs)

822.24 822.24 561.60 561.60 561.60 561.60 3890.88

A B C D E F

TOTAL

Note: selling rate is 1100/- per sq. feet

50

PROFITABILITY STATEMENT
The main sales realization is through the sale of the flats at the prices that are determined above. The main expenses that would be incurred is mentioned below. After the calculation of the sales and the expenses the net profit is being calculated. The Net profit after deducting all the expenses comes to 807.38 lakhs.
PROFITABILITY STATEMENT RS. IN LACS GROSS SALES REALISATION Development Rights Cost of Land Development Raw Material Cost Architects & Structural Consultants Fees Administrative Expenses Labor Consumables Power Consumed Lift Auda charges Sub Total I Contingencies Sub Total II Interest Cost Grand Total 656.67 109.53 1191.58 25.00 22.50 364.80 15.00 25.00 112.00 80.00 2602.08 50.00 2652.08 431.42 3083.50 3890.88

Net Profit

807.38

51

DEVELOPMENT EXPENSES AND DETAILED TABLE OF EXPENSES

Development Expenses Rs. In Lacs Leveling / Excavation Inside Paving / Compound Wall/ Flooring Sewerage Street Lighting Land Scaling Bore well Total 23.00 45.00 8.00 5.00 10.00 18.53 109.53

Total Cost of Construction Rs. In Lacs Raw Material Cost Architect and Structural Engineers fee Labor Consumables Power Lift Administrative Expenses Interest expenses Auda 1191.58 25.00 364.80 15.00 25.00 112.00 22.50 431.42 80.00

Total

2267.30

52

RAW MATERIAL EXPENSES

Raw Material Consumption per Sq.ft
Cement (Bag/ Sq.ft) Other (Grit) Steel (Kg./sq.ft) Bricks (Brick/ Sq.ft) Wood (Cuft/ Sq.ft) Electric, Sanitary Fittings (Rs./ Sq.ft) 3.00 15.00 0.15 30.00 2.80 525.00 30.00

Rate(Rs.)
y
0.40

Rs. In Lacs

Unit
207.00 292.91 47.00 318.38 148.58 278.58 106.13

Total Raw Material Cost Total Sq.feet 353760

1191.58

LABOR EXPENSES
Sal/month/ Total Salary P.A. Rs. person In Lacs
10 20 40 100 50 17500.00 7500.00 6000.00 4500.00 4500.00 21.00 18.00 28.80 54.00 27.00 148.80 297.60 25 20 7200.00 5000.00 21.60 12.00 67.20

No. Labor
Civil Engineer Construction Supervisor Masons Laborers Assistants Labor Expenses Per Annum Total Construction labor For 24 Month Add Carpenters Electricians Total Carpentry Expenses for 24 Month

Total Labor Expenses

364.80
53

POWER EXPENSES
Power Avg Units/ day
Power 500.00

Rate (Rs.)

Power

Unit
6.85

Exp. P.A.
12.50

Total Power Charges For Project

25.00

ADMINISTRATIVE EXPENSES
Administrative Expenses
Salaries and wages Transport / Travelling Telephone / Fax Marketing Expenses Stationery Charges Miscellaneous Exp. Administrative Expenses per Annum Administrative Expenses For 3 Years 6 months

Rs. In Lacs
2.00 1.00 1.00 1.50 0.50 0.43 6.43 22.50

54

INTEREST REPAYMENT
In order to finance the project a loan is been taken in the form of cash credit from the bank against which the land would be given as a mortgage. The loan would be provided at an interest of 11.50% and the repayment would be done in 43 instalments. The drawings from the bank would be till third year and after that the repayment of the loan will start as the receipt from all the members would be received till that time. So the total interest payments that would be made after all the calculations come up to 431.32 lakhs. The interest is calculated on the opening balance every month and the firm can withdraw a certain amount every month as per the deal with the bank. The drawing power increases every month as the construction proceeds and once the construction gets over the drawing is complete and the repayment starts.

STATEMENT OF INTEREST AND REPAYMENT OF CASH CREDIT INTEREST RATE CASH CREDIT REPAYMENT AMT.IN 43 MNTHS Year MONTH 1 2 3 4 5 6 7 8 9 10 11 11.50% 1400.00

(Rs. In Lacs)
OP.BAL 0.00 80.00 170.00 260.00 355.00 450.00 550.00 650.00 755.00 860.00 970.00 DISB 80.00 90.00 90.00 95.00 95.00 100.00 100.00 105.00 105.00 110.00 110.00 REPAY 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CL.BAL 80.00 170.00 260.00 355.00 450.00 550.00 650.00 755.00 860.00 970.00 1080.00 INT 0.00 0.77 1.63 2.49 3.40 4.31 5.27 6.23 7.24 8.24 9.30

55

12

1080.00

110.00

0.00

1190.00

10.35

INTEREST IN FIRST YEAR II 1 2 3 4 5 6 7 8 9 10 11 12 INTEREST IN SECOND YEAR III 1 2 3 4 5 6 7 8 9 10 11 12 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1190.00 1280.00 1360.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00

1190.00

59.23

90.00 80.00 40.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 210.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1280.00 1360.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00

11.40 12.27 13.03 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 157.48

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00

13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42 13.42

56

INTERSET IN THIRD YEAR IIII 1 2 3 4 5 6 7 INTERSET IN FOURTH YEAR TOTAL INTEREST CHARGES 1400.00 1200.00 1000.00 800.00 600.00 400.00 200.00

0.00

161.04

0.00 0.00 0.00 0.00 0.00 0.00 0.00

200.00 200.00 200.00 200.00 200.00 200.00 200.00 1400.0

1200.00 1000.00 800.00 600.00 400.00 200.00 00.00

13.42 11.50 9.58 7.67 5.75 3.83 1.92 53.67

431.42

Note: 1. The interest has been calculated on the outstanding balance at the start of every month. 2. It is presumed that the drawing power has been increased at the end of every month.

57

PROJECTED CASH FLOW STATEMENT

The projected cash flow statement projects the cash inflow and the cash outflow that would be there during the whole life of the project. The project here is divided into four years and each year in 4 quarters. The surplus that is calculated of these cash flows would be used to calculate the NPV of the project.

QUARTERLY CASH FLOW (RS. IN LACS) YEAR1 COST OF PROJECT 1 2 3 4 YEAR2 1 2 3 4 YEAR3 1 2 3 4 YEAR4 1 2 3 4 TOTAL

Development Rights Development Exp. Cost of Construction Financial Cost Repayment Term Loan Repayment of

656.67 109.53 200 2.4 0 of 0

0 0 400 10.2 0 0

0 0 400 18.74 0 0

0 50 400 27.9 0 0

0 0 200 36.7 50 0

0 0 100 40.26 50 0

0 0 100 40.3 50 0

0 0 35.88 40.26 50 0

0 0 0 40.26 56.25 0

0 0 0 40.26 56.25 0

0 0 0 40.26 56.25 0

0 0 0 40.26 56.25 0

0 0 0 34.5 50 275

0 0 0 17.3 0 350

0 0 0 1.92 0 300

0 0 0 0 0 0

656.67 159.53 1835.9 431.42 650 750

58

c/c A/c Loan Total 968.6 410.2 418.74 478 286.7 190.3 190 126.1 96.51 96.51 96.51 96.51 359.5 367 301.92 0 0

MEANS OF FINANCE Surplus C/F Capital Contribution Receipt from Members Term Loan Cash Credit Total 0 156.67 0 475 540 1171.7 203.1 100 0 0 110 413.1 2.87 100 0 0 100 202.87 -216 300 250 0 175 509 31.24 0 350 0 0 381.24 94.54 0 325 0 0 419.5 229 0 325 0 0 554 364 0 100 0 0 464 337.88 0 100 0 0 437.88 341.4 0 200 0 0 541.4 444.9 0 300 0 0 744.9 648.4 0 400 0 0 1048 951.84 0 400 0 0 1351.8 992 0 400 0 0 1392 1025.1 0 400 0 0 1425.1 1123 0 390.9 0 0 656.67 3890.9 650 750

Surplus

203.07

2.87

-215.9

31.2

94.54

229.3

364

337.9

341.37

444.9

648.4

951.8

992.34

1025

1123.2

1464

59

PROJECTED PROFIT AND LOSS ACCOUNT

DESCRIPTION INCOME : SALES Closing Work-in-Progress TOTAL EXPENDITURE: Opening Work-in-Progress Land (Development Rights) Development Exp Construction Cost Interest Exp TOTAL Profit/Loss for the year TOTAL

YEAR_1 Amount

YEAR_2 Amount

YEAR_3 Amount

YEAR_4 Amount

0 227,543,000 227,543,000

100,000,000 207,247,000 307,247,000

135,000,000 119,261,000 254,261,000

154,088,000 0 154,088,000

0 65,667,000 10,953,000 145,000,000 5,923,000 227,543,000 0 227,543,000

227,543,000 0 0 43,588,000 15,748,000 286,879,000 20,368,000 307,247,000

207,247,000 0 0 0 16,104,000 223,351,000 30,910,000 254,261,000

119,261,000 0 0 0 5,367,000 124,628,000 29,460,000 154,088,000

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PROJECTED BALANCE SHEET YEAR_1 Amount SOURCES OF FUNDS : Partner's Capital Balance of Profit and Loss A/C Advance form Customers Term Loan Cash Credit Account TOTAL APPLICATION OF FUNDS : Work in Progress Cash & Bank Balance TOTAL 65,667,000 0 25,000,000 65,000,000 71,876,000 65,667,000 20,368,000 35,000,000 31,500,000 54,712,000 65,667,000 51,278,000 0 2,316,000 0 65,667,000 80,738,000 0 0 0 YEAR_2 Amount YEAR_3 Amount YEAR_4 Amount

227,543,000 207,247,000 119,261,000 146,405,000

227,543,000 207,247,000 119,261,000 0 0

0 146,405,000

227,543,000 207,247,000 119,261,000 146,405,000

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NPV ANALYSIS OF THE PROJECT

Net Present Value (NPV) measures the viability of a project or investment by taking into account the investments (outflow) and returns generated (inflow) from the investments. It is computed based on the sum of a series of cash flows in and out. NPV takes into account the series of cash paid or received in todays value. Projects with a positive NPV are expected to increase the value of the firm. Thus, the NPV decision rule specifies that all independent projects with a positive NPV should be accepted. When choosing among mutually exclusive projects, the project with the largest (positive) NPV should be selected. The NPV is calculated as the present value of the project's cash inflows minus the present value of the project's cash outflows. This relationship is expressed by the following formula:

Where CFt = the cash flow at time t and r = the cost of capital.

62

NPV CALCULATIONS
For the NPV calculations, the cash flows of the different years are taken into consideration. In order to derive the cash flows for the project we have already prepared the cash flow statement of each year and each quarter of the year. We have taken the cash flows of the end of the each year. The surplus that is there in the end of each year is reinvested next year. So the previous year surplus is being deducted from the current year surplus that is the cash flow year. For discounting the cash flows, the discount rate of 11.5% is been taken. It is the same percentage at which the loan had been procured for the project from the bank. So it becomes the opportunity cost of capital for the calculation. The following table will show the calculations in detail:-

YEAR CASH FLOWS 1. 2. 3. 4. 31.24 306.64 613.96 512.21

DISCOUNTED @ 11.5% 31.24/1.115 = 28.02 306.64/1.115^2 = 246.65 613.96/1.115^3 = 442.91 512.21/1.115^4 = 331.40

Total

NPV = + 1048.98 (lakhs)

ANALYSIS:From the above calculations we can see that the NPV of the project is Positive that is +1048.98 lakhs. As the NPV is positive the project can be accepted and can be moved forward with. As the NPV is very high it shows that the project is very profitable and should be undertaken. Thus through the NPV analysis the financial feasibility of the project is positive and it can be moved forward with the project at the said estimations and at the preferred place.

63

5.2. MARKETING ANALYSIS

64

1. What type of house do you currently reside in? Self - owned Rented Staying with parents/relatives

The above depicts that nearly 42.50% of the surveyed customers live in self- owned houses. The next are the people who live in rented houses. The analysis to this is that this 33% of the customers who are living in rented properties can be taped and they are the most probable future clients for the project. The next focus can be given to the people who have their own houses. The people who would be staying for a long time in their current houses would be inclined to purchase a new house more. So, the main two segments that the company can focus are on the people who live in rented houses and the people who live in a self owned house.

65

2. Since how long you are residing in your current house? 1 year 1-5 years 5-10 years 10-15years 15 years

The chart clearly depicts that the majority of the surveyed customers are living in their current property for the past 5 to 10 years. After than comes those who are living for more than 15 years. The company can target these two segments who are residing in their current property from the time duration between 10 to 15 years because they would be the people who would be more inclined to purchase a new house than the ones who have been residing for less than 5 years.

66

3. What kind of property is it? Flat/apartment Bungalow Tenement Row Houses others please specify_________________________ Low rise High rise

Income (Rs.): -

1-5lakh

5-10 lakhs

10-15 lakhs

15 lakhs

For the analysis part of this question the kind of property is being cross tabulated with the per annum incomes of the customers. The inference that we want to derive from this is that with their current annual income in what type of house they are residing in. Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7.872a 7.360 .027 200 df 12 12 1 Asymp. Sig. (2-sided) .795 .833 .870

a. 9 cells (45.0%) have expected count less than 5. The minimum expected count is .06.
incomelevels * kindofproperty Crosstabulation Count kindofproperty flat/appartment incomelevels 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs Total 28 43 20 8 99 bungalow 11 21 8 1 41 tenament 11 19 9 2 41 rowhouse 4 11 2 1 18 others 0 0 1 0 1 Total 54 94 40 12 200

67

Kind of property * income levels Cross tabulation

Income levels Kind of property flat/apartment

Count % within kindofproperty % within incomelevels % of Total 1-5 lakhs 28 28.3% 51.9% 14.0% 11 26.8% 20.4% 5.5% 11 26.8% 20.4% 5.5% 4 22.2% 7.4% 2.0% 0 .0% .0% .0% 54 27.0% 100.0% 27.0% 5-10 lakhs 43 43.4% 45.7% 21.5% 21 51.2% 22.3% 10.5% 19 46.3% 20.2% 9.5% 11 61.1% 11.7% 5.5% 0 .0% .0% .0% 94 47.0% 100.0% 47.0% 10-15 lakhs 20 20.2% 50.0% 10.0% 8 19.5% 20.0% 4.0% 9 22.0% 22.5% 4.5% 2 11.1% 5.0% 1.0% 1 100.0% 2.5% .5% 40 20.0% 100.0% 20.0% >=15 lakhs 8 8.1% 66.7% 4.0% 1 2.4% 8.3% .5% 2 4.9% 16.7% 1.0% 1 5.6% 8.3% .5% 0 .0% .0% .0% 12 6.0% 100.0% 6.0% Total 99 100.0% 49.5% 49.5% 41 100.0% 20.5% 20.5% 41 100.0% 20.5% 20.5% 18 100.0% 9.0% 9.0% 1 100.0% .5% .5% 200 100.0% 100.0% 100.0%

bungalow

Count % within kindofproperty % within incomelevels % of Total

tenament

Count % within kindofproperty % within incomelevels % of Total

rowhouse

Count % within kindofproperty % within incomelevels % of Total

Others

Count % within kindofproperty % within incomelevels % of Total

Total

Count % within kindofproperty % within incomelevels % of Total

68

From the cross tabs that we have done it is analyzed that there is a relation between the income levels of the customers and the present property they are residing in. From the above graph we can analyze that out of the 54 respondents who have an income of 1-5 lakhs there are 28 respondents who reside in flat/apartment and the second highest 11 reside in bungalows. The next 94 respondents who have an income level of 5-10 lakhs 43 of them reside in the flats/apartments and the next highest reside in bungalows. In next 40 respondents who have an income level of 10-15 lakhs majority of them that is 20 of them reside in flat/apartment and the next highest 9 reside in the tenement. The rest of the greater than 15 lakhs one highest reside in flat and apartment and the second highest 2 reside in tenement. So we can conclude that majority of all the income level people reside in flat and apartment. So we the company can target the customers who are residing in flat and apartments as it can be said that people of all income levels prefer flat and apartments.

69

HYPOTHESIS FOR CHI- SQUARE Ho: income levels and kind of property are not dependent H1: income levels and kind of property are dependent
In order for greater clarification we calculated the chi-square of this cross tab. The chi-square came to be 0.795 which is much higher than 0.05. This shows that these two factors are very highly correlated with each other and they are highly dependent on each other. So through the chi-square analysis we can say that the present property they are residing in has a large dependency of their income levels. Thus the analysis shows that the income levels of the customers and the kind of the property they are currently residing are highly dependent on each other. As the chi-square is more than 0.05 Ho gets rejected and H1 gets accepted.

70

Since how long you are residing in your current house? 1 year 1-5 years 5-10 years 10-15years 15 years

What kind of property is it? Flat/apartment Bungalow Tenement Row Houses others please specify_________________________ For the analysis part of this question the kind of property is being cross tabulated with the duration of time that they the customers are residing in their current property. The reason for this cross tabulation is to develop a link between the present duration that they have spent in the present property and their chances of buying a new property in the future. Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 31.024a 28.454 2.044 200 df 16 16 1 Asymp. Sig. (2-sided) .013 .028 .153 Low rise High rise

a. 11 cells (44.0%) have expected count less than 5. The minimum expected count is .11.
sincehowlongincurrenthouse * kindofproperty Crosstabulation Count kindofproperty flat/appartment Sincehowlongincurrent 1 year house 1-5 years 5-10 years 10-15 years more than 15 years Total 4 20 45 17 13 99 bungalow 5 5 14 6 11 41 tenament 6 3 16 6 10 41 rowhouse 7 3 4 3 1 18 others 0 0 1 0 0 1 Total 22 31 80 32 35 200

71

kindofproperty * sincehowlongincurrenthouse Crosstabulation sincehowlongincurrenthouse kindofproperty

1 year 1-5 years 5-10 years 10-15 years more then 15 years 13 13.1% 37.1% 6.5% 11 26.8% 31.4% 5.5% 10 24.4% 28.6% 5.0% 1 5.6% 2.9% .5% 0 .0% .0% .0% 35 17.5% 100.0% 17.5% Total 99 100.0% 49.5% 49.5% 41 100.0% 20.5% 20.5% 41 100.0% 20.5% 20.5% 18 100.0% 9.0% 9.0% 1 100.0% .5% .5% 200 100.0% 100.0% 100.0%

flat/appartment Count
% within kindofproperty % within sincehowlongincurrenthouse % of Total

4 4.0% 18.2% 2.0% 5 12.2% 22.7% 2.5% 6 14.6% 27.3% 3.0% 7 38.9% 31.8% 3.5% 0 .0% .0% .0% 22 11.0% 100.0% 11.0%

20 20.2% 64.5% 10.0% 5 12.2% 16.1% 2.5% 3 7.3% 9.7% 1.5% 3 16.7% 9.7% 1.5% 0 .0% .0% .0% 31 15.5% 100.0% 15.5%

45 45.5% 56.3% 22.5% 14 34.1% 17.5% 7.0% 16 39.0% 20.0% 8.0% 4 22.2% 5.0% 2.0% 1 100.0% 1.3% .5% 80 40.0% 100.0% 40.0%

17 17.2% 53.1% 8.5% 6 14.6% 18.8% 3.0% 6 14.6% 18.8% 3.0% 3 16.7% 9.4% 1.5% 0 .0% .0% .0% 32 16.0% 100.0% 16.0%

Bungalow

Count % within kindofproperty % within sincehowlongincurrenthouse % of Total

Tenement

Count % within kindofproperty % within sincehowlongincurrenthouse % of Total

Rowhouse

Count % within kindofproperty % within sincehowlongincurrenthouse % of Total

Others

Count % within kindofproperty % within sincehowlongincurrenthouse % of Total

Total

Count % within kindofproperty % within sincehowlongincurrenthouse % of Total

72

From the cross tabs that we have done it is analyzed that there is a relation between the duration spent in their current residence and the present property they are residing in. The cross tab were done in order to analyze the relationship between the two. From the above graph we can analyze that out of the 99 respondents who reside in flat /apartment 45 of them are residing in it from 5-10 years. The next 41 respondents who reside in bungalows 14 of them are residing in it from 5-10 years. In next 41 respondents who reside in tenement 16 of them are residing in it from 5-10 years. The next 18 respondents that are leaving in the tenements 7 of them are residing in their current property for less than one year. So it can be analyzed that the majority of the respondents are residing in their current properties for 5-10 years and these people can be targeted by the company.

73

HYPOTHESIS FOR CHI SQUARE Ho: Duration of residing in the current house and the kind of property are not

dependent.
H1: Duration of residing in the current house and the kind of property are

dependent.

In order for greater clarification we calculated the chi-square of this cross tab. The chisquare came to be 0.013 which is lower than 0.05. This shows that these two factors are not highly correlated with each other and they are not dependent on each other. So through the chi-square analysis we can say that the duration of the current property they are residing in doesnt have a dependency on their income levels. Thus the analysis shows that the income levels of the customers and the kind of the property they are currently residing are not dependent on each other. as the chi square is less than 0.05 Ho gets accepted and H1 gets rejected.

74

4. Are you looking for a new house? yes no

In this all the answers that were given by the respondents were positive. The survey was conducted on the customers who visited the various residential construction sites in the upcoming areas of Ahmedabad. So the customers that visited these sites wanted to purchase a new house so all the respondents that we got were in the favour. Moreover, most of the respondents were the respondents who were already residing in their current house for a long period of time and also for a variety of changes wanted to change their current property.

75

5. What property are you looking forward to buy? Flat/Apartment Bungalow Tenement Row Houses Others please specify______________________________________ Low rise High rise

Income (Rs.): -

1-5lakh

5-10 lakhs

10-15 lakhs

15 lakhs

For the analysis part of this question the new property one is looking forward is being cross tabulated with the income levels of the customers. The reason for this cross tabulation is to develop a link between the new properties that the person is proposing to buy with their current income level. The main reason for this tabulation is to find out what income level families prefer what kind of a new property. Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 15.892a 17.458 2.740 200 df 12 12 1 Asymp. Sig. (2-sided) .196 .133 .098

a. 8 cells (40.0%) have expected count less than 5. The minimum expected count is .66.
incomelevels * proplookforwrd2buy Crosstabulation Count proplookforwrd2buy flat/appartement incomelevels 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs Total 19 44 18 6 87 bungalow 18 17 13 2 50 tenament 5 20 5 4 34 row house 7 8 3 0 18 other 5 5 1 0 11 Total 54 94 40 12 200

76

proplookforwrd2buy * incomelevels Crosstabulation incomelevels

proplookforwrd2 buy 1-5 lakhs 19 21.8% 5-10 lakhs 44 50.6% 10-15 lakhs 18 20.7% >=15 lakhs 6 6.9% Total 87 100.0%

flat/appartem Count ent % within

proplookforwrd2buy % within incomelevels % of Total

35.2% 9.5% 18 36.0%

46.8% 22.0% 17 34.0%

45.0% 9.0% 13 26.0%

50.0% 3.0% 2 4.0%

43.5% 43.5% 50 100.0%

bungalow

Count % within proplookforwrd2buy % within incomelevels % of Total

33.3% 9.0% 5 14.7%

18.1% 8.5% 20 58.8%

32.5% 6.5% 5 14.7%

16.7% 1.0% 4 11.8%

25.0% 25.0% 34 100.0%

tenament

Count % within proplookforwrd2buy % within incomelevels % of Total

9.3% 2.5% 7 38.9%

21.3% 10.0% 8 44.4%

12.5% 2.5% 3 16.7%

33.3% 2.0% 0 .0%

17.0% 17.0% 18 100.0%

row house

Count % within proplookforwrd2buy % within incomelevels % of Total

13.0% 3.5% 5 45.5%

8.5% 4.0% 5 45.5%

7.5% 1.5% 1 9.1%

.0% .0% 0 .0%

9.0% 9.0% 11 100.0%

Other

Count % within proplookforwrd2buy % within incomelevels % of Total

9.3% 2.5% 54 27.0%

5.3% 2.5% 94 47.0%

2.5% .5% 40 20.0%

.0% .0% 12 6.0%

5.5% 5.5% 200 100.0%

Total

Count % within proplookforwrd2buy % within incomelevels % of Total

100.0% 27.0%

100.0% 47.0%

100.0% 20.0%

100.0% 6.0%

100.0% 100.0%

77

From the cross tabs that we have done it is analyzed that there is a relation between the property that the respondents are looking forward to buy and the income levels of these respondents. The cross tab were done in order to analyze the relationship between the two. From the above graph we can analyze that out of the 54 respondents who have an income of about 1-5 lakhs 19 of them are looking for a new property to be Flat/apartment and 18 are looking for a bungalow. The next 94 who have an income of about 5-10 lakhs 44 of them are looking for a new property to be Flat/apartment and 17 are looking for a bungalow. The next 40 who have an income of about 10-15 lakhs 18 of them are looking for a new property to be Flat/apartment and 13 are looking for a bungalow. The rest 12 who have an income level of greater than 15 lakhs 6 of them are looking for an flat/apartment. Thus we can derive that people of all income groups have a higher preference for flats/apartment which is a positive sign for the company.

78

HYPOTHESIS FOR CHI SQUARE Ho: property looking forward to buy and income levels are not dependent H1: Properties looking forward to buy and income levels are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square came to be 0.196 which is greater than 0.05. This shows that these two factors are highly correlated with each other and they are dependent on each other. So through the chi-square analysis we can say that the incomes levels of the respondents and their preference for the new property are highly correlated and dependent on each other.

As the chi-square is more than 0.05 Ho gets rejected and H1 gets accepted

79

6. What are the reasons for changing your current house? Due to a Change of lifestyle For Security reasons Inadequate size of the current apartment For better and more improved Amenities Because of distance from the current workplace Because of the old style set up/construction of the house

From the above bar diagram it is very clearly visible that majority of the respondents that is 23.5% of the respondents want to change their current residence for better and more improved amenities. Thus, it shows that customers now a days give more importance to the amenities that are being provided by the new builders. The second highest rated factor is the distance from the current work place. 18% of the respondents want to change their residence just for minimizing the distance to workplace. The third highest factor whom 17.5% of the respondents have rated is for the change in their current life style. The change in the current life style can be due to an increase in the status of the family or increase in the income levels of the respondents because of which they want to shift from their current residence to a new property.

80

7. What are the factors that would affect your property buying decisions? (Tick Mark any one of them) Variables Price Location Developers Profile Brand image Housing Option Loan Very Important Important Neutral Less important Least Important

Property Features Necessary Government Approvals Vastu Compliance Payment terms (cash/ Cheque)

N=1 Price Location Developers profile Brand image Housing option loan 109 88 66 53 51 68 104 43 54

N=2 79 98 93 97 103 104 61 59 99

N=3 9 12 31 31 30 18 23 56 34

N=4 2 1 9 13 10 6 11 22 10

N=5 1 1 1 6 6 4 1 20 3

Total*N 307 329 386 422 417 374 344 517 409

Mean=Total*n/200 1.535 1.645 1.93 2.11 2.085 1.87 1.72 2.585 2.045

Property features Necessary govt.approvals Vastu compliance Payment terms

81

Mean

price 1.5350

location 1.6450

developer's profile 1.9300

brand image 2.1100

housing loan option 2.0850

property features 1.8700

necessary government approvals 1.7200

Vastu compliance 2.5850

payment terms 2.0450

In this question we asked the respondents to mark the various factors on a liker scale ranging from very important to the least important. In order to neutralize the effect of the ranks, the weighted average method was used. In these the number of responses to each of the factor on each of the liker scale ranging was calculated and the weighted mean was found out. The factor which scores the least mean is the most preferred by the respondents and so on. Now looking at the means price has the least mean of 1.5350. So it can be analyzed that the price of the property is the most important factor that the customers consider while making their buying decision. The next important factor that affects their buying decision is location with a mean of 1.6450. so it can be evaluated that customers look for the location as the second important factor for buying. The least important factor that affects the respondents buying decision is the vastu compliance with a mean of 2.5850.

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8. According to you which are the most important factors that should be present in a new property? ( Tick Mark any one of them) Variables Amenities (Garden, club house Etc.) Security Structure Serenity Elevation Concept Based Housing Design Proximity Very Important Important Neutral Less important Least Important

N=1 N=2 N=3 N=4 N=5 Total*N Mean=Total*n/200 Amenities Security Structure Serenity Elevation Concept based housing Proximity 66 73 75 44 40 65 49 79 110 103 80 110 80 78 47 12 18 58 34 30 55 7 3 2 10 10 14 10 1 2 2 8 6 11 8 398 351 353 458 432 426 450 1.99 1.755 1.765 2.29 2.16 2.13 2.25

83

Mean

amenities security 1.9900 1.7550

structure serenity 1.7650 2.2900

elevation 2.1600

concept based housing proximity design 2.1300 2.2500

In this question we asked the respondents to mark the various factors that are important in the new property on a liker scale ranging from very important to the least important. In order to neutralize the effect of the ranks, the weighted average method was used. In these the number of responses to each of the factor on each of the liker scale ranging was calculated and the weighted mean was found out. The factor which scores the least mean is the most preferred by the respondents and so on. Now looking at the means of the various factors security has the lowest mean of 1.7550. That means the customers gives the most importance to the security factor that should be present in the new property. The third lowest mean is of the Amenities with a mean of 1.9900. This correlates with the question of factors for changing the current property. The highest mean has been given to serenity with a mean of 2.2900. This shows that for the customers the greenery factor is the least important that should be present in the new property.
84

9. What kind of house would you prefer? Furnished Semi-furnished Unfurnished

The above chart shows that 38% of the respondents prefer the house which is totally furnished. The 37.5% of the people prefer houses that are semi-finished. This shows that majority of the respondents either prefer a semi-furnished or an unfurnished apartment. Most of them are not still acquainted with the idea of fully furnished houses. Still the concept of getting the interiors done by them is hot favorite. Customers now a days appreciate even the semi-furnished houses in which the flooring, bathroom fittings, electrification is done by the builders themselves. The concept of full furnished houses will take time to get accepted by the customers of Ahmedabad.

85

10. What amenities are the most important that would fulfill your expectations? (Rate them from 1 to 5:- 1 being the most important & 5 being the least) Garden Childrens Play area Club House Intercom Facility Parking space ______ ______ ______ ______ ______ satellite DTH Elevators Swimming pool Fire fighting system Others ______ ______ ______ ______ ______

Frequency Table
garden Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 54 58 56 25 7 200 5 205 Percent 26.3 28.3 27.3 12.2 3.4 97.6 2.4 100.0 Valid Percent 27.0 29.0 28.0 12.5 3.5 100.0 Percent 27.0 56.0 84.0 96.5 100.0

childrensplayarea Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 47 51 50 38 14 200 5 205 Percent 22.9 24.9 24.4 18.5 6.8 97.6 2.4 100.0 Valid Percent 23.5 25.5 25.0 19.0 7.0 100.0 Percent 23.5 49.0 74.0 93.0 100.0

86

clubhouse Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 50 41 41 41 27 200 5 205 Percent 24.4 20.0 20.0 20.0 13.2 97.6 2.4 100.0 Valid Percent 25.0 20.5 20.5 20.5 13.5 100.0 Percent 25.0 45.5 66.0 86.5 100.0

intercomfacility Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 42 36 48 49 25 200 5 205 Percent 20.5 17.6 23.4 23.9 12.2 97.6 2.4 100.0 Valid Percent 21.0 18.0 24.0 24.5 12.5 100.0 Percent 21.0 39.0 63.0 87.5 100.0

parkingspace Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 106 52 19 17 6 200 5 205 Percent 51.7 25.4 9.3 8.3 2.9 97.6 2.4 100.0 Valid Percent 53.0 26.0 9.5 8.5 3.0 100.0 Percent 53.0 79.0 88.5 97.0 100.0

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Satellite DTH Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 40 47 49 39 25 200 5 205 elevators Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 76 49 31 24 20 200 5 205 Percent 37.1 23.9 15.1 11.7 9.8 97.6 2.4 100.0 Valid Percent 38.0 24.5 15.5 12.0 10.0 100.0 Percent 38.0 62.5 78.0 90.0 100.0 Percent 19.5 22.9 23.9 19.0 12.2 97.6 2.4 100.0 Valid Percent 20.0 23.5 24.5 19.5 12.5 100.0 Percent 20.0 43.5 68.0 87.5 100.0

swimmingpool Cumulative Frequency Valid very important important neutral less important least important 23.00 Total Missing Total System 37 61 26 43 32 1 200 5 205 Percent 18.0 29.8 12.7 21.0 15.6 .5 97.6 2.4 100.0 Valid Percent 18.5 30.5 13.0 21.5 16.0 .5 100.0 Percent 18.5 49.0 62.0 83.5 99.5 100.0

88

firefightingsystem Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 76 35 30 43 16 200 5 205 others Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 2 4 4 6 184 200 5 205 Percent 1.0 2.0 2.0 2.9 89.8 97.6 2.4 100.0 Valid Percent 1.0 2.0 2.0 3.0 92.0 100.0 Percent 1.0 3.0 5.0 8.0 100.0 Percent 37.1 17.1 14.6 21.0 7.8 97.6 2.4 100.0 Valid Percent 38.0 17.5 15.0 21.5 8.0 100.0 Percent 38.0 55.5 70.5 92.0 100.0

Mean

garden 2.3650

childrens playarea 2.6050

inter com park clubh facil ings satellite ity pace ouse DTH 2.770 2.89 1.82 2.8100 0 50 50

elevat swimming firefighti ors pool ngsystem 2.315 2.9600 2.4400 0

others 4.8300

89

In this question we asked the respondents to rank the various amenities that are important in the new property, 1 being the most important and 5 being the least important. In order to neutralize the effect of the ranks, the weighted average method was used. In these the number of responses to each of the amenities on each of the rankings was calculated and the weighted mean was found out. The amenities which scores the least mean is the most preferred by the respondents and so on. Now looking at the means of the various amenities the parking space got the least mean of 1.8250. It shows that in the amenities customers give more importance to the parking space that is being provided. The second least mean is of elevators is 2.3150. The outer appearance of the property is the second important amenity for respondents. The least important amenity that has got the highest mean is swimming pool facility with a mean of 2.9600 and others having a highest mean of 4.8300. Garden and other factors come as the neutral factors that might or might not be important in the purchase of the new property.

90

11. What type of flooring would you prefer in your new h ouse? (Rank them from 1 to 5:- 1 being the most preferred & 5 being the least) Italian Marble Vitrified Tiles Ceramic Tiles ______ ______ ______ wooden flooring others ______ ______

N=1 Italian marble Vitrified tiles Ceramic tiles Wooden flooring Others 54 65 38 41 2

N=2 63 69 25 42 1

N=3 61 52 45 40 3

N=4 19 14 88 73 6

N=5 3 0 4 4 188

Total*N 454 415 595 553 977

Mean=Total*n/200 2.27 2.075 2.975 2.765 4.885

Mean

Italian vitrified ceramic wooden marble tiles tiles flooring others 2.2700 2.0750 2.9750 2.7850 4.8850

91

In this question we asked the respondents to rank the various floorings that are important in the new property, 1 being the most important and 5 being the least important. In order to neutralize the effect of the ranks, the weighted average method was used. In these the number of responses to each of the floorings on each of the rankings was calculated and the weighted mean was found out. The flooring which scores the least mean is the most preferred by the respondents and so on. Now looking at the means of the various floorings, vitrified tiles have scored the least mean of 2.0750. This means that customers would prefer more vitrified floorings in their new property. The next lowest mean is 2.2700 and it is for Italian marbles. People consider Italian marbles add to their status. The least preferred are ceramic tiles and others which have a high mean of 2.9750 and 4.8850.

92

12. What Brand of toilet furnishing accessories would you prefer in the new property? (Rank them from 1 to 5:- 1 being the most preferred & 5 being the least) Jacquar Hindware others ______ ______ ______ Cera Kohler ______ ______

N=1 Jaguar Hindware Cera Kohler Others 89 27 38 35 11

N=2 69 52 53 26 0

N=3 25 75 60 36 5

N=4 11 46 44 93 7

N=5 6 0 5 10 177

Total*N 376 540 525 617 939

Mean=Total*n/200 1.88 2.70 2.625 3.085 4.695

Mean

jaguar hindware 1.8800 2.7000

cera 2.6250

kohler 3.0850

others 4.6950

93

In this question we asked the respondents to rank the various bathroom fittings that are important in the new property, 1 being the most important and 5 being the least important. In order to neutralize the effect of the ranks, the weighted average method was used. In these the number of responses to each of the bathroom fittings on each of the rankings was calculated and the weighted mean was found out. The bathroom fittings which scores the least mean is the most preferred by the respondents and so on. Now looking at the means of the various bathroom fittings, Jaguar has scored the lowest mean of 1.8800. This shows that people would prefer that their property bathroom fittings should be of Jaguar. The second lowest mean is of Cera that is 2.6250. The highest mean of 3.0850 and 2.6950 have been given by the respondents to Kohler and others. This shows that Kohler is the least preferred by the customers in their new property.

94

13. What kind of Electrification would you prefer in the new property? Single Phase Two phase Three phase

Now looking at the pie chart one can analyze that majority of the people i.e. 57.50% of the respondents would prefer three phase electrification in their new property so that the load can be divided equally on all the three phases that are being provided by the builders. The second highest preferred one is two phases which is preferred by 23.50% of the respondents. Only 19% of the respondents opted for a single phase connection. The main perception of the people is that a three phase is very costly so they mainly prefer one phase or two phase electrification.

95

14. Where would you prefer your new property to be strategically located? Heart of the city ( shahibaug, paldi, Navrangpura Etc.) Suburbs ( Judges bungalow, prahaladnagar, Bopal, Etc.) Amidst natural surroundings ( South Bopal, Gandhinagar Etc.)

From the chart it is clearly visible that 48% of the respondents want their new property to be located in the suburbs of the city. The suburbs of the city include places like Prahaladnagar, Bopal, Thaltej, Sarkhej and many such places. So we get one of our conclusions here that people are open up to exploring new sub urban areas and are inclined to purchase their house there. The second most preferred location is amidst natural surroundings to which 27.50% respondents preferred. These areas include the gandhinagar area, the south bopal area and all such areas. The least preferred is the location of Heart of the city which is preferred by 24% of the respondents. In the heart of the city there is very less property available and the peace and security that the people are looking is not available so people prefer less that location.

96

15. Which area of Ahmedabad would you prefer to purchase your new house? (Rank them from 1 to 10:- 1 being the most preferred & 10 being the least) Shahibaug Chandkheda Paldi Prahaladnagar ______ _____ ______ ______ Nikol Vejalpur Thaltej ______ ______ ______ Naroda Bopal Vastrapur ______ _____ ______

N = 1
Shahibaug Chandkhe da Paldi Prahladna gar Nikol Vejalpur Thaltej Naroda Bopal Vastrapur 20 9 27 76

N= N= N= N= N= N= N= N= 2 3 4 5 6 7 8 9
18 11 16 49 21 14 18 20 9 18 28 16 20 37 22 20 21 32 4 16 11 24 25 24 13 24 31 10 17 29 22 14 23 15 26 18 17 3 14 44 15 13 30 20 26 30 22 0 18 24 20 34 20 5 6 25 12 4 28 21 16 4 37 23 17 19 23 11

N= 10
20 28 20 2 2 12 19 43 22 11

Total* N
1110 1260 1048 518 1460 1232 1039 1376 1158 831

Mean=Tota l*n/200
5.55 6.3

5.24 2.59 7.3 6.16 5.195 6.88 5.79 4.155

5 2 16 3 10 29

8 8 34 5 15 38

56 24 18 29 12 10

Mean

shahiba ug 5.5500

chandkhed a paldi prahaladnagar 6.3000 5.240 2.5900 0

nikol vejalpur 7.3000 6.1600

thaltej 5.1950

vas tra naroda bopal pur 6.8800 5.7900 4.1 550

97

In this question we asked the respondents to rank the various areas that are most preferred to buy a new house, 1 being the most important and 10 being the least important. In order to neutralize the effect of the ranks, the weighted average method was used. In these the number of responses to each of the areas for purchase decision on each of the rankings was calculated and the weighted mean was found out. The area which scores the least mean is the most preferred by the respondents and so on. Now looking at the means of the various areas that are preferred for buying a new property Prahaladnagar area has received the lowest mean of 2.5900. This shows that people are attracted towards the New Prahaladnagar Area and they want to buy their new property in that area. This result makes the marketing feasibility positive as people would prefer to buy new property in that area. The second property which has got the lowest mean is Vastrapur with a mean of 4.1550. The main advantage of this area is the beautiful Vastrapur Lake and the easy availability and the connection to the various areas of Ahmedabad. The third lowest mean of 5.1950 is of Thaltej. The three highest means are 7.3000, 6.8800, 6.3000 are of the areas Nikol, Naroda and Chandkheda. The main reason for this can be that these areas are not that well developed and are not properly connected with the other places of Ahmedabad. Customers will definitely prefer properties in these areas but it will take time for them to appreciate these areas for purchase purposes.

98

16. While selecting any particular area what are the criteria that you consider? (Rate from 1 to 10:- 1 being the most preferred & 10 being the least) Childrens School/ college Work place Local transport Basic necessities ______ ______ ______ ______ safety Hospitals Cinema halls others ______ ______ ______ ______

Frequencies

Statistics childrensschoolc ollege N Valid Missing Mean 200 5 2.8350 workplace 200 5 2.2350 localtransport 200 5 2.6950 basicnecessities 200 5 2.0950 safety 200 5 2.6200 hospitals 200 5 2.8950 cinemahalls 200 5 3.2600 others3 200 5 4.6600

childrensschoolcollege Cumulative Frequency Valid very important important neutral less important least important 8.00 Total Missing Total System 43 41 53 35 27 1 200 5 205 Percent 21.0 20.0 25.9 17.1 13.2 .5 97.6 2.4 100.0 Valid Percent 21.5 20.5 26.5 17.5 13.5 .5 100.0 Percent 21.5 42.0 68.5 86.0 99.5 100.0

99

workplace
Frequency Valid very important important neutral less important least important 8.00 Total Missing Total System 92 37 27 23 20 1 200 5 205 Percent 44.9 18.0 13.2 11.2 9.8 .5 97.6 2.4 100.0 Valid Percent 46.0 18.5 13.5 11.5 10.0 .5 100.0 Cumulative Percent 46.0 64.5 78.0 89.5 99.5 100.0

localtransport
Frequency Valid very important important neutral less important least important 7.00 Total Missing Total System 46 54 37 43 19 1 200 5 205 Percent 22.4 26.3 18.0 21.0 9.3 .5 97.6 2.4 100.0 Valid Percent 23.0 27.0 18.5 21.5 9.5 .5 100.0 Cumulative Percent 23.0 50.0 68.5 90.0 99.5 100.0

Basic necessities
Frequency Valid very important important neutral less important least important Total Missing Total System 94 45 26 18 17 200 5 205 Percent 45.9 22.0 12.7 8.8 8.3 97.6 2.4 100.0 Valid Percent 47.0 22.5 13.0 9.0 8.5 100.0 Cumulative Percent 47.0 69.5 82.5 91.5 100.0

100

safety Frequency Valid very important important neutral less important least important Missing Total Total System 40 60 52 32 16 200 5 205 hospitals Frequency Valid very important important neutral less important least important 6.00 Missing Total Total System 38 40 56 38 27 1 200 5 205 Percent 18.5 19.5 27.3 18.5 13.2 .5 97.6 2.4 100.0 Valid Percent 19.0 20.0 28.0 19.0 13.5 .5 100.0 Cumulative Percent 19.0 39.0 67.0 86.0 99.5 100.0 Percent 19.5 29.3 25.4 15.6 7.8 97.6 2.4 100.0 Valid Percent 20.0 30.0 26.0 16.0 8.0 100.0 Cumulative Percent 20.0 50.0 76.0 92.0 100.0

cinemahalls Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 14 42 52 62 30 200 5 205 Percent 6.8 20.5 25.4 30.2 14.6 97.6 2.4 100.0 Valid Percent 7.0 21.0 26.0 31.0 15.0 100.0 Percent 7.0 28.0 54.0 85.0 100.0

101

others3 Cumulative Frequency Valid very important important neutral less important least important Total Missing Total System 2 8 5 26 159 200 5 205 Percent 1.0 3.9 2.4 12.7 77.6 97.6 2.4 100.0 Valid Percent 1.0 4.0 2.5 13.0 79.5 100.0 Percent 1.0 5.0 7.5 20.5 100.0

Mean

childrenssc hoolcollege 2.8350

workplace 2.2350

localtransport 2.6950

basicnecessities 2.0950

safety hospitals 2.6200 2.8950

cinemah alls 3.2600

others 3 4.6600

102

In this question we asked the respondents to rate the various criteria that are the most important to them while selecting any particular area. We asked them to rate all the criteria from 1 to 5, 1 being the most important and 5 being the least important. After that we used the frequencies and the mean to find out the criteria which is of the most important for the respondent while selecting any area. In this the lowest mean is the most important criteria and highest mean being the least important. Looking at the chart above and the various means, the lowest mean of 2.0950 is been allotted to basic necessities. For the respondents the main criteria for selecting any area are basic necessities. Basic necessities deal with the availability of the day to day items that are required in the normal course of life. The second lowest mean of 2.2350 is been given to work place. This analysis goes hand in hand with the analysis of the question for reasons for changing the current residence. The proximity to the workplace is the second most important factor for the respondents. The third most important factor is security with a mean of 2.6250. This also matches with the most important amenity that the respondents look for in the new property. The criteria which are of the least importance are hospitals, cinema halls and others with a mean of 2.8950, 3.2600 and 4.6600. According to the respondents these are the least important criteria that affect their area preference decision.

103

17. What are your perceptions about the New Prahaladnagar Area? __________________________________________________________________________ _ ______________________________________________________

This was an open ended question that was asked to the respondents in order to know their ideas and perceptions about the new Prahaladnagar area. Majority of the respondents said that it is a good and an upcoming area. It is an area where there is a lot of greenery and lush green gardens all around. Some other respondents brought the investment topic in the light. They said that it is a nice place for investment as the prices of the property in this area is going to rise in the future and so a good return on the investment can be earned. Other reviews were that it is the area where a majority of the new schemes would be launched as people want to shift to new areas where there is more peace and serenity. Other opinions were that in addition to the upcoming area the area is very well connected to the various food joints, cinema halls, shopping malls and so on. Some of the opponents to this area said that the land prices in these areas are very high and so the builders charge a high price for their residential and commercial schemes. Others argued that this is area is very far from the railway station and airport. Well there were some few respondents who were not very satisfied new Prahaladnagar Area. But majority of the respondents agreed that it is a very hot destination to invest in as the total return on the investment is going to be there in the future and the place is surrounded with greenery and serenity everywhere.

104

18. Out of the following options for a 2bhk apartment at New Prahaladnagar what is the maximum price you would want to pay? 18-22 lakhs 22-26 lakhs 26-30 lakhs 30 lakhs

For the analysis part of this question the Prahaladnagar area is been cross tabulated with the Price of the 2 bhk. The main reason for going for this cross tabulation was to know the price at which customers would prefer to buy the 2bhk at Prahaladnagar. This linkage is done to know that the rates that the new scheme would provide would be accepted by customers or not. Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 29.167
a

df 24 24 1

Asymp. Sig. (2-sided) .214 .080 .064

34.285 3.429 200

a. 21 cells (58.3%) have expected count less than 5. The minimum expected count is .19.

price2bhk * prahladnagar Crosstabulation Count prahladnagar price2bhk 18-22 lakhs 22-26 lakhs 26-30 lakhs >=30 lakhs Total rank 1 6 23 21 26 76 rank 2 11 11 15 13 50 rank 3 5 6 5 4 20 rank 4 10 9 5 8 32 rank 5 4 2 4 0 10 rank 6 0 1 1 1 3 rank 8 0 3 0 1 4 rank 9 1 0 2 1 4 rank 10 0 0 1 0 1 Total 37 55 54 54 200

105

prahladnagar * price2bhk Crosstabulation

price2bhk prahladnagar
rank 1 Count % within prahladnagar % within price2bhk % of Total rank 2 Count % within prahladnagar % within price2bhk % of Total rank 3 Count % within prahladnagar % within price2bhk % of Total rank 4 Count % within prahladnagar % within price2bhk % of Total rank 5 Count % within prahladnagar % within price2bhk % of Total rank 6 Count % within prahladnagar % within price2bhk % of Total rank 8 Count % within prahladnagar % within price2bhk 18-22 lakhs 6 7.9% 16.2% 3.0% 11 22.0% 29.7% 5.5% 5 25.0% 13.5% 2.5% 10 31.3% 27.0% 5.0% 4 40.0% 10.8% 2.0% 0 .0% .0% .0% 0 .0% .0% 22-26 lakhs 23 30.3% 41.8% 11.5% 11 22.0% 20.0% 5.5% 6 30.0% 10.9% 3.0% 9 28.1% 16.4% 4.5% 2 20.0% 3.6% 1.0% 1 33.3% 1.8% .5% 3 75.0% 5.5% 26-30 lakhs 21 27.6% 38.9% 10.5% 15 30.0% 27.8% 7.5% 5 25.0% 9.3% 2.5% 5 15.6% 9.3% 2.5% 4 40.0% 7.4% 2.0% 1 33.3% 1.9% .5% 0 .0% .0% >=30 lakhs 26 34.2% 48.1% 13.0% 13 26.0% 24.1% 6.5% 4 20.0% 7.4% 2.0% 8 25.0% 14.8% 4.0% 0 .0% .0% .0% 1 33.3% 1.9% .5% 1 25.0% 1.9% Total 76 100.0% 38.0% 38.0% 50 100.0% 25.0% 25.0% 20 100.0% 10.0% 10.0% 32 100.0% 16.0% 16.0% 10 100.0% 5.0% 5.0% 3 100.0% 1.5% 1.5% 4 100.0% 2.0%

106

% of Total rank 9 Count % within prahladnagar % within price2bhk % of Total rank 10 Count % within prahladnagar % within price2bhk % of Total Total Count % within prahladnagar % within price2bhk % of Total

.0% 1 25.0% 2.7% .5% 0 .0% .0% .0% 37 18.5% 100.0% 18.5%

1.5% 0 .0% .0% .0% 0 .0% .0% .0% 55 27.5% 100.0% 27.5%

.0% 2 50.0% 3.7% 1.0% 1 100.0% 1.9% .5% 54 27.0% 100.0% 27.0%

.5% 1 25.0% 1.9% .5% 0 .0% .0% .0% 54 27.0% 100.0% 27.0%

2.0% 4 100.0% 2.0% 2.0% 1 100.0% .5% .5% 200 100.0% 100.0% 100.0%

107

From the cross tabs that we have done it is analyzed that there is a relation between the price of 2bhk and Prahaladnagar area. The cross tab were done in order to analyze the relationship between the two. From the above graph we can analyze that out of the 37 respondents who prefer 18-22 lakhs to pay for a 2bhk at Prahaladnagar there are 6 respondents who have given Prahaladnagar as their first preference. The next 55 respondents who prefer 22-26 lakhs to pay for a 2bhk at Prahaladnagar there are 23 respondents who have given Prahaladnagar as their first preference. The next 54 respondents who prefer 26-30 lakhs to pay for a 2bhk at Prahaladnagar there are 21 respondents who have given Prahaladnagar as their first preference. The next 54 respondents who prefer 30 lakhs to pay for a 2bhk at Prahaladnagar there are 26 respondents who have given Prahaladnagar as their first preference. So from this it can be analyzed that the people are ready to pay 30 lakhs and 22-26 lakhs for a 2bhk apartment at their most preferred area that is Prahaladnagar.

HYPOTHESIS FOR CHI-SQUARE Ho: Prahaladnagar and price of 2bhk are not dependent H1: Prahaladnagar and price of 2bhk are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square came to be 0.214 which is higher than 0.05. This shows that these two factors are highly correlated with each other and they are dependent on each other. So through the chi-square analysis we can say that the price of a 2bhk apartment at Prahaladnagar does have a dependency on the Prahaladnagar area. Thus the analysis shows that the price of a 2bhk apartment at Prahaladnagar and Prahaladnagar area are dependent on each other.

The chi-square of the analysis is more than 0.05, so H1 gets accepted and Ho gets rejected.

108

19. Out of the following options for a 3bhk apartment at New Prahaladnagar what is the maximum price you would want to pay? 30-35 lakhs 35-40 lakhs 40-45 lakhs 45 lakhs

For the analysis part of this question the Prahaladnagar area is been cross tabulated with the Price of the 3 bhk. The main reason for going for this cross tabulation was to know the price at which customers would prefer to buy the 3 bhk at Prahaladnagar. This linkage is done to know that the rates that the new scheme would provide would be accepted by customers or not.

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 30.117a 32.566 .614 200 df 24 24 1 Asymp. Sig. (2-sided) .181 .114 .433

a. 23 cells (63.9%) have expected count less than 5. The minimum expected count is .11.

price3bhk * prahladnagar Crosstabulation Count prahladnagar rank 1 price3bhk 30-35 lakhs 35-40 lakhs 40-45 lakhs >=45 lakhs Total 9 25 36 6 76 rank 2 9 12 24 5 50 rank 3 4 9 5 2 20 rank 4 10 8 9 5 32 rank 5 1 6 2 1 10 rank 6 0 2 0 1 3 rank 8 2 0 1 1 4 rank 9 1 0 3 0 4 rank 10 0 0 1 0 1 Total 36 62 81 21 200

109

prahladnagar * price3bhk Crosstabulation

price3bhk prahladnagar rank 1 Count % within prahladnagar % within price3bhk % of Total rank 2 Count % within prahladnagar % within price3bhk % of Total rank 3 Count % within prahladnagar % within price3bhk % of Total rank 4 Count % within prahladnagar % within price3bhk % of Total rank 5 Count % within prahladnagar % within price3bhk % of Total rank 6 Count % within prahladnagar % within price3bhk % of Total rank 8 Count % within prahladnagar % within price3bhk % of Total rank 9 Count % within prahladnagar 30-35 lakhs 9 11.8% 25.0% 4.5% 9 18.0% 25.0% 4.5% 4 20.0% 11.1% 2.0% 10 31.3% 27.8% 5.0% 1 10.0% 2.8% .5% 0 .0% .0% .0% 2 50.0% 5.6% 1.0% 1 25.0% 35-40 lakhs 25 32.9% 40.3% 12.5% 12 24.0% 19.4% 6.0% 9 45.0% 14.5% 4.5% 8 25.0% 12.9% 4.0% 6 60.0% 9.7% 3.0% 2 66.7% 3.2% 1.0% 0 .0% .0% .0% 0 .0% 40-45 lakhs 36 47.4% 44.4% 18.0% 24 48.0% 29.6% 12.0% 5 25.0% 6.2% 2.5% 9 28.1% 11.1% 4.5% 2 20.0% 2.5% 1.0% 0 .0% .0% .0% 1 25.0% 1.2% .5% 3 75.0% >=45 lakhs 6 7.9% 28.6% 3.0% 5 10.0% 23.8% 2.5% 2 10.0% 9.5% 1.0% 5 15.6% 23.8% 2.5% 1 10.0% 4.8% .5% 1 33.3% 4.8% .5% 1 25.0% 4.8% .5% 0 .0% Total 76 100.0% 38.0% 38.0% 50 100.0% 25.0% 25.0% 20 100.0% 10.0% 10.0% 32 100.0% 16.0% 16.0% 10 100.0% 5.0% 5.0% 3 100.0% 1.5% 1.5% 4 100.0% 2.0% 2.0% 4 100.0%

110

% within price3bhk % of Total rank 10 Count % within prahladnagar % within price3bhk % of Total Total Count % within prahladnagar % within price3bhk % of Total

2.8% .5% 0 .0% .0% .0% 36 18.0% 100.0% 18.0%

.0% .0% 0 .0% .0% .0% 62 31.0% 100.0% 31.0%

3.7% 1.5% 1 100.0% 1.2% .5% 81 40.5% 100.0% 40.5%

.0% .0% 0 .0% .0% .0% 21 10.5% 100.0% 10.5%

2.0% 2.0% 1 100.0% .5% .5% 200 100.0% 100.0% 100.0%

111

From the cross tabs that we have done it is analyzed that there is a relation between the price of 3bhk and Prahaladnagar area. The cross tab were done in order to analyze the relationship between the two. From the above graph we can analyze that out of the 36 respondents who prefer 30-35 lakhs to pay for a 3bhk at Prahaladnagar there are 9 respondents who have given Prahaladnagar as their first preference. The next 62 respondents who prefer 35-40 lakhs to pay for a 3bhk at Prahaladnagar there are 25 respondents who have given Prahaladnagar as their first preference. The next 81 respondents who prefer 40-45 lakhs to pay for a 3bhk at Prahaladnagar there are 36 respondents who have given Prahaladnagar as their first preference. The next 21 respondents who prefer 45 lakhs to pay for a 3bhk at Prahaladnagar there are 6 respondents who have given Prahaladnagar as their first preference. So from this it can be analyzed that the people are ready to pay 35-40 lakhs and 40-45 lakhs for a 3bhk apartment at their most preferred area that is Prahaladnagar.

HYPOTHESIS FOR CHI-SQUARE Ho: Prahaladnagar and price of 3bhk are not dependent H1: Prahaladnagar and price of 3bhk are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square came to be 0.181 which is higher than 0.05. This shows that these two factors are highly correlated with each other and they are dependent on each other. So through the chi-square analysis we can say that the price of a 3bhk apartment at Prahaladnagar does have a dependency on the Prahaladnagar area. Thus the analysis shows that the price of a 3bhk apartment at Prahaladnagar and Prahaladnagar area are dependent on each other. As the chi-square analysis is higher than 0.05, H1 gets accepted and Ho gets rejected.

112

Out of the following options for a 2 bhk apartment at New Prahaladnagar what is the maximum price you would want to pay? 18-22 lakhs 22-26 lakhs 26-30 lakhs 30 lakhs

Income (Rs.): -

1-5lakh

5-10 lakhs

10-15 lakhs

15 lakhs

price2bhk * incomelevels Crosstabulation

incomelevels price2bhk 18-22 lakhs Count % within price2bhk % within incomelevels % of Total 22-26 lakhs Count % within price2bhk % within incomelevels % of Total 26-30 lakhs Count % within price2bhk % within incomelevels % of Total >=30 lakhs Count % within price2bhk % within incomelevels % of Total Total Count % within price2bhk % within incomelevels % of Total 1-5 lakhs 20 54.1% 37.0% 10.0% 12 21.8% 22.2% 6.0% 11 20.4% 20.4% 5.5% 11 20.4% 20.4% 5.5% 54 27.0% 100.0% 27.0% 5-10 lakhs 13 35.1% 13.8% 6.5% 27 49.1% 28.7% 13.5% 30 55.6% 31.9% 15.0% 24 44.4% 25.5% 12.0% 94 47.0% 100.0% 47.0% 10-15 lakhs 3 8.1% 7.5% 1.5% 13 23.6% 32.5% 6.5% 11 20.4% 27.5% 5.5% 13 24.1% 32.5% 6.5% 40 20.0% 100.0% 20.0% >=15 lakhs 1 2.7% 8.3% .5% 3 5.5% 25.0% 1.5% 2 3.7% 16.7% 1.0% 6 11.1% 50.0% 3.0% 12 6.0% 100.0% 6.0% Total 37 100.0% 18.5% 18.5% 55 100.0% 27.5% 27.5% 54 100.0% 27.0% 27.0% 54 100.0% 27.0% 27.0% 200 100.0% 100.0% 100.0%

113

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 21.366
a

df 9 9 1

Asymp. Sig. (2-sided) .011 .019 .001

19.839 10.204 200

a. 4 cells (25.0%) have expected count less than 5. The minimum expected count is 2.22.

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incomelevels * price2bhk Crosstabulation Count price2bhk 18-22 lakhs incomelevels 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs Total 20 13 3 1 37 22-26 lakhs 12 27 13 3 55 26-30 lakhs 11 30 11 2 54 >=30 lakhs 11 24 13 6 54 Total 54 94 40 12 200

From the cross tabs that we have done it is analyzed that there is a relation between the price of 2bhk and Income Levels. The cross tab were done in order to analyze the relationship between the two. From the above graph we can analyze that out of the 54 respondents who have an income of 1-5 lakhs there are 12 respondents who ready to pay 22-26 lakhs for a 2bhk at Prahaladnagar. The next 94 respondents who have an income of 5-10 lakhs there are 27 respondents who ready to pay 22-26 lakhs for a 2bhk at Prahaladnagar. The next 40 respondents who have an income of 10-15 lakhs there are 13 respondents who ready to pay 22-26 lakhs for a 2bhk at Prahaladnagar. The next 12 respondents who have an income of 15 lakhs there are 3 respondents who ready to pay 22-26 lakhs for a 2bhk at Prahaladnagar. So from this it can be analyzed that the people who have an income of 5-10 lakhs and 10-15 lakhs are ready to pay 22-26 lakhs for a 2bhk apartment at their most preferred area that is Prahaladnagar.

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HYPOTHESIS FOR CHI-SQUARE Ho: price of 2bhk and income levels ar e not dependent H1: price of 2bhk and income levels are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square came to be 0.011 which is lower than 0.05. This shows that these two factors are not highly correlated with each other and they are not dependent on each other. So through the chisquare analysis we can say that the price of a 2bhk apartment at Prahaladnagar does not have a dependency on the income levels of the customers. Thus the analysis shows that the price of a 2bhk apartment at Prahaladnagar and income levels is not dependent on each other. As the chi-square is less than 0.05 the Ho gets accepted and the H1 gets rejected.

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Out of the following options for a 3 bhk apartment at New Prahaladnagar what is the maximum price you would want to pay? 30-35 lakhs 35-40 lakhs 40-45 lakhs 45 lakhs

Income (Rs.): -

1-5lakh

5-10 lakhs

10-15 lakhs

15 lakhs

price3bhk * income levels Cross tabulation

incomelevels price3bhk 30-35 lakhs Count % within price3bhk % within incomelevels % of Total 35-40 lakhs Count % within price3bhk % within incomelevels % of Total 40-45 lakhs Count % within price3bhk % within incomelevels % of Total >=45 lakhs Count % within price3bhk % within incomelevels % of Total Total Count % within price3bhk % within incomelevels % of Total 1-5 lakhs 16 44.4% 29.6% 8.0% 12 19.4% 22.2% 6.0% 21 25.9% 38.9% 10.5% 5 23.8% 9.3% 2.5% 54 27.0% 100.0% 27.0% 5-10 lakhs 11 30.6% 11.7% 5.5% 36 58.1% 38.3% 18.0% 38 46.9% 40.4% 19.0% 9 42.9% 9.6% 4.5% 94 47.0% 100.0% 47.0% 10-15 lakhs 8 22.2% 20.0% 4.0% 12 19.4% 30.0% 6.0% 17 21.0% 42.5% 8.5% 3 14.3% 7.5% 1.5% 40 20.0% 100.0% 20.0% >=15 lakhs 1 2.8% 8.3% .5% 2 3.2% 16.7% 1.0% 5 6.2% 41.7% 2.5% 4 19.0% 33.3% 2.0% 12 6.0% 100.0% 6.0% Total 36 100.0% 18.0% 18.0% 62 100.0% 31.0% 31.0% 81 100.0% 40.5% 40.5% 21 100.0% 10.5% 10.5% 200 100.0% 100.0% 100.0%

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Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 17.141a 14.966 3.328 200 df 9 9 1 Asymp. Sig. (2-sided) .047 .092 .068

a. 5 cells (31.3%) have expected count less than 5. The minimum expected count is 1.26.

incomelevels * price3bhk Crosstabulation Count price3bhk 30-35 lakhs incomelevels 1-5 lakhs 5-10 lakhs 10-15 lakhs >=15 lakhs Total 16 11 8 1 36 35-40 lakhs 12 36 12 2 62 40-45 lakhs 21 38 17 5 81 >=45 lakhs 5 9 3 4 21 Total 54 94 40 12 200

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From the cross tabs that we have done it is analyzed that there is a relation between the price of 3bhk and Income Levels. The cross tab were done in order to analyze the relationship between the two. From the above graph we can analyze that out of the 54 respondents who have an income of 1-5 lakhs there are 12 respondents who ready to pay 35-40 lakhs for a 3bhk at Prahaladnagar. The next 94 respondents who have an income of 5-10 lakhs there are 36 respondents who ready to pay 35-40 lakhs for a 3bhk at Prahaladnagar. The next 40 respondents who have an income of 10-15 lakhs there are 12 respondents who ready to pay 35-40 lakhs for a 3bhk at Prahaladnagar. The next 12 respondents who have an income of 15 lakhs there are 2 respondents who ready to pay 35-40 lakhs for a 3bhk at Prahaladnagar. So from this it can be analyzed that the people who have an income of 5-10 lakhs and 10-15 lakhs are ready to pay 35-40 lakhs for a 3bhk apartment at their most preferred area that is Prahaladnagar.

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HYPOTHESIS FOR CHI-SQUARE Ho: price of 3bhk and income levels are not dependent H1: price of 3bhk and income levels are dependent

In order for greater clarification we calculated the chi-square of this cross tab. The chi-square came to be 0.047 which is lower than 0.05. This shows that these two factors are not highly correlated with each other and they are not dependent on each other. So through the chisquare analysis we can say that the price of a 3bhk apartment at Prahaladnagar does not have a dependency on the income levels of the customers. Thus the analysis shows that the price of a 3bhk apartment at Prahaladnagar and income levels is not dependent on each other.

As the chi-square is less than 0.05, H1 gets rejected and Ho gets accepted.

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6. FINDINGS

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FINANCIAL ANALYSIS
In the financial analysis we calculated the NPV of the project. The NPV of the project came to be + 1048.98. The NPV is vey high and as per the rule of NPV if the NPV is positive the project should be accepted and carried forward. Thus, following that rule we suggest the company to accept the project and to go for the further development of the project.

MARKETING ANALYSIS
From the analysis of the questionnaire we can conclude that Prahaladnagar Area is the most preferred by all the respondents and they would prefer their new property to be situated in that area. For that area the maximum price that they would pay for a 2bhk is between 22-26 and 26-30 lakhs and for a 3bhk between 30-35 and 35-40 lakhs. The main amenities that the respondents feel to be there in the new property should be security and good elevators which are being provided by the present proposed project. Majority of the respondents preferred vitrified tiles as a flooring and Jaguar and cera as the bathroom fittings. All these preferences of the customers are being provided in the current proposed project. Moreover majority of them opted for 3 phase electrification which is also being provided by the current proposed property. Now looking at all these factors we can conclude that the present property will accomplish all the needs of the consumers at the price they want to spend behind purchasing a new property. Thus, we can say that the project will be encouraged and accepted by the custo mers as it fulfils all their requirements.

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7. CONCLUSION

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CONCLUSION

Real Estate Sector in Ahmedabad is in a constant change. Gone are the days when the builders used to offer the customers with a high price property by providing fewer amenities. Now the builders are going for more and more newer areas, are going for concept based housing design, are providing more and more amenities to the customers at a very affordable prices. The residential development is mainly happening towards the west and some in the north side of the city. Though only a few townships have been announced as yet, what is catching up in Ahmedabad are small residential developments with bungalows or apartment complexes. In todays era one is seeing more bookings from real users rather than those who are booking for investment. In spite of this, a good chunk of the bookings are from NRIs and out-of-state people. The kind of property in demand has also changed in recent times and with it, the pattern of construction. Today, the face of Ahmedabad is changing with modern residential complexes and IT parks springing up. Three- and four-bedroom flats as well as bungalows are common and more and more complexes are coming up with facilities such as jogging tracks, childrens parks, health clubs, etc. The demand of the new buyer is quite different from what it was earlier and developers are happy to supply accordingly There is a steady stream of people from other states coming into the city due to job and business opportunities here leading to higher demand. With a booming job market, there is an influx of people from neighbouring cities like Rajkot and Baroda as well. This is probably why builders and investors from outside are making inroads into Ahmedabad.

Ahmedabad is just emerging on the international investment front. The real estate market lags somewhat the solid economic growth that the state is enjoying. But the sector is growing fast and is well worth exploring

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8. BIBLIOGRAPHY

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BIBLIOGRAPHY

WEBSITES:TimesofIndia.indiatimes.com Ahmedabad Hindubusinessline.com Businessline.com Hindustantimes.com Magicbricks.com Dlf.in - http://www.dlf.in/dlf/wcm/connect/DLF_Common/DLF_SITE Parsvnath - http://www.parsvnath.com/corporate/aboutus.asp?about=journey Raheja - http://www.krahejacorp.com/about-us.html Pacifica companies - http://www.pacificacompanies.co.in/residential_projects.html Omaxe Group - http://www.omaxe.com/residential.php

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9. ANNEXURES

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Questionnaire
Dear Sir/Madame: We are the students of an MBA program, and we are conducting a survey to know the buying prospects of the consumers regarding purchase of a house at Prahaladnagar. All the details provided by you would be kept confidential.

1. What type of house do you currently reside in?

Self - owned Rented Staying with parents/relatives

2. Since how long you are residing in your current house?

1 year 1-5 years 5-10 years 10-15years 15 years

3. What kind of property is it?

Flat/apartment Bungalow Tenement Row Houses Others please specify_________________________ Low rise High rise

4. Are you looking for a new house?

yes no

5. What property are you looking forward to buy?

Flat/Apartment Bungalow Tenement Row Houses Others please specify______________________________________ Low rise High rise

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6. What are the reasons for changing your current house?

Due to a Change of lifestyle For Security reasons Inadequate size of the current apartment For better and more improved Amenities Because of distance from the current workplace Because of the old style set up/construction of the house

7. What are the factors that would affect your property buying decisions?
( Tick Mark any one of them) Variables Price Location Developer s Profile Brand image Housing Loan Option Property Features Necessary Approvals Government Very Important Important Neutral Less important Least Important

Vastu Compliance Payment terms (cash/ Cheque)

8. According to you which are the most important factors that should be present in a new property?
( Tick Mark any one of them) Variables Amenities (Garden, house Etc.) Security Structure Serenity Elevation Concept Design Proximity Based Housing club Very Important Important Neutral Less important Least Important

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9. What kind of house would you prefer?

Furnished Semi-furnished Unfurnished

10. What amenities are the most important that would full fill your expectations?
(Rate them from 1 to 5:- 1 being the most important & 5 being the least) Garden Children s Play area Club House Intercom Facility Parking space ______ ______ ______ ______ ______ satellite DTH Elevators Swimming pool Fire fighting system Others ______ ______ ______ ______ ______

11. What type of flooring would you prefer in your new house?
(Rank them from 1 to 5:- 1 being the most preferred & 5 being the least) Italian Marble Vitrified Tiles Ceramic Tiles ______ ______ ______ wooden flooring others ______ ______

12. What Brand of toilet furnishing accessories would you prefer in the new property?
(Rank them from 1 to 5:- 1 being the most preferred & 5 being the least) Jacquar Hindware others ______ ______ ______ Cera Kohler ______ ______

13. What kind of Electrification would you prefer in the new property?
Single Phase Two phase Three phase

14. Where would you prefer your new property to be strategically located?
Heart of the city ( shahibaug, paldi, Navrangpura Etc.) Suburbs ( Judges bungalow, prahaladnagar, Bopal, Etc.) Amidst natural surroundings ( South Bopal, Gandhinagar Etc.)

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15. Which area of Ahmedabad would you prefer to purchase your new house?
(Rank them from 1 to 10:- 1 being the most preferred & 10 being the least) Shahibaug Chandkheda Paldi Prahaladnaga ______ ______ ______ ______ Nikol Vejalpur Thaltej ______ ______ ______ Naroda Bopal Vastrapur ______ ______ ____

16. While selecting any particular area what are the criteria that you consider?
(Rate from 1 to 5:- 1 being the most preferred & 5 being the least) Children s School/ college Work place Local transport Basic necessities ______ ______ ______ ______ safety Hospitals Cinema halls others

______
______ ______ ______

17. What are your perceptions about the New Prahaladnagar Area?
__________________________________________________________________________________________ _______________________________________

18. Out of the following options for a 2 bhk apartment at New Prahaladnagar what is the maximum price
you would want to pay? 18-22 lakhs 22-26 lakhs 26-30 lakhs 30 lakhs

19. Out of the following options for a 3 bhk apartment at New Prahaladnagar what is the maximum price
you would want to pay? 30-35 lakhs 35-40 lakhs 40-45 lakhs 45 lakhs

Name:Age:Gender: male female single self employed 1-5lakh married service professional 10-15 lakhs business

Marital status: Occupation: Income (Rs.): -

5-10 lakhs

15 lakhs

Current residence:-

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