Ansal Real Estate

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<p>ANSAL PROPERTIES &amp; INFRASTRUCTURE LTD.</p> <p>Summer Training Report __________________________ Project Title</p> <p>REAL ESTATE INVESTMENT TRENDS IN NORTHERN INDIA___________________________________________ BY: BHARTI GUPTA</p> <p>PGDBM-III SECTION-A ROLL NO.11 NDIM</p> <p>AcknowledgementThe project title REAL ESTATE INVESTMENT TRENDS IN NORTHERN INDIA has been conducted by me during 14th may and 9th July 2007 at Ansal Properties &amp; Infrastructure Ltd. I have completed this project, based on the primary research under the guidance of Mr. Alok Agnihotri (General Manager, Marketing) and Mr. Vipin Sheoran (Assistant Manager, Marketing). I owe enormous intellectual debt towards my guides Mr. Alok Agnihotri (General Manager, Marketing) and Mr. Vipin Sheoran (Assistant Manager, Marketing), who have augmented my knowledge in the field of Marketing. They have helped me learn about the process and giving me valuable insight to understand how I can suggest new and innovative ways. They have provided me a true learning platform, and have been the perfect mentors, in giving me the necessary guidance regarding my project.</p> <p>I would like to thank them in enriching my thoughts in this field from different perspectives. I would like to thank all the respondents without whose co-operation my project would not have been complete. I feel indebted to all those persons and organizations that have provided help directly or indirectly in successful completion of this study.</p> <p>At the end, ANSAL API, was a great experience to work in, where I feel, the dedication of its employees is one of the vital factors of its success.</p> <p>Executive SummaryReal estate is a 12$ billion (revenue) industry in India. There has been a rapid growth in the industry in the past few years. In the residential sector, a growing middle class is enjoying rising income levels. Combined with smaller household sizes, this demographic change has boosted demand for more modern housing and home loans. Meanwhile, increasing consumer spending power has encouraged growth in organized in organized retailing both feeding off and contributing to the spear of mall culture and the popularity of other large-scale retail property developments. In the commercial property segment, strong growth in the services sector particularly in the IT and ITES sectors and corporates growing scale of</p> <p>operations have led to greater demand for commercial space, including modern offices, warehouses and lodging space. Many Developers have substantial plans to increase both their size and geographical spread. They are also expanding into different kinds of properties, which can boost the firms franchise values and reduce concentration risks. However, managing and financing such activities can be a challenge, and puts a premium on financial flexibility, capital access and operational infrastructure.</p> <p>The project assigned to me has an objective to find and analyze the current scenario of Real Estate, covering the preferences of current as well as prospective customers. The major part of the project also analyses the size of investment in various states and mind set of the customers regarding this as well as the perceptions of customers towards major leading Real Estate players.</p> <p>The study was carried out with a methodology, in order to collect as much primary data as possible. Data was collected by getting the questionnaires filled from Real Estate Agents across Delhi and NCR. Areas covered in Delhi: North, East, West, South and Central Delhi. Areas covered in NCR: Gurgaon, Indirapuram, Vaishali Once the data was collected, this data was analyzed using Microsoft Excel as a tool and various conclusions were drawn. This analysis is depicted in the form of various charts and graphs. Along with the questionnaires, Agents</p> <p>viewpoints on various issues were also taken in order to get a more insight into the Real Estate. Following is the analyses done and conclusions drawn: Plots, Apartments and Rented Offices are the most preferred The states that people prefer for investment and anticipate a good NCR DELHI PUNJAB</p> <p>investment options in Real Estate people prefer for investment. return in those states are:</p> <p>Delhi, seen as a market of End-Users, rather than investors. People from all over are interested in investing in NCR, including a good amount of population of NRIs. In other states, a declining trend is seen; NCR is into a stagnant state, where there are least chances of the market going worse in the near future.</p> <p>Real Estate Scenario In Various StatesRAJASTHAN: General size of investment in Rajasthan 92% of the people responded that the current size of investment in Rajasthan is below Rs.25 lac.</p> <p>Most Preferred Developer Omaxe, Ansal API Preferred Cities Jaipur, Bhiwadi PUNJAB: General size of investment in Punjab 95% of the people responded that the current size of investment in Punjab is below Rs.50 lac. Most Preferred Developer Ansal API, Emaar MGF Preferred Cities Mohali, Amritsar U.P. General size of investment in U.P. 92% of the people responded that the current size of investment in U.P. is below Rs.25 lac. Most Preferred Developer Parsvnath, Omaxe Preferred Cities Lucknow, Agra</p> <p>HARYANA: General size of investment in Haryana</p> <p>94% of the people responded that the current size of investment in Haryana is below Rs.50 lac. Most Preferred Developer Ansal API, Omaxe Preferred Cities Sonepat, Panipat DELHI: General size of investment in Delhi 85% of the people responded that the current size of investment in Delhi is above Rs.50 lac. Most Preferred Developer DLF, Unitech NCR: General size of investment in NCR 98% of the people responded that the current size of investment in NCR is above Rs. 25 lac. Most Preferred Developer Emaar MGF, DLF Preferred Cities Gurgaon, Noida</p> <p>DLF, most preferred developer in NCR, fact remains, DLF, a company for High-End investors, rather than small investors.</p> <p>Emaar MGF, one of the biggest developer with huge amount of capital in its hands, since none of its projects are complete as of now, real estate agents are still not clear with its position amongst the investors.</p> <p>Emaar MGF is likely to come big in the near future. Parsvnath in Delhi has created a place for itself by setting a trend of Metro Malls.</p> <p>BRAND NAME and PREVIOUS TRACK RECORD of the company that counts most for the prospective clients to invest into a particular project. This is for a reason that projects in Real Estate cannot be accurately forecasted for success or failure. So, counting on the Brand name and previous track record is the only option prospects are left with.</p> <p>People nowadays go for Short-Term investment plans. This is mainly because, Real Estate is not at a boom, so people, who are interested in investing want to invest and realize as soon as possible.</p> <p>74% respondents: Own funds that people use for investing into a particular project.</p> <p>94% respondents: Nearby housing facility does influence investors to invest in commercial properties in remote areas.</p> <p>92%</p> <p>respondents:</p> <p>future</p> <p>govt.</p> <p>plans,</p> <p>somehow</p> <p>influence</p> <p>the</p> <p>investment decisions in these areas.</p> <p>Investments Options preferred other than Real Estate: 42% respondents: Equity &amp; Commodities 37% respondents: Mutual Funds 12% respondents: Insurance 9% respondents: Fixed Deposits</p> <p>CURRENT TREND OF REAL ESTATE UPWARD: North Delhi(Pitampura, Rohini, Netaji Subhash Place and Adjoining Areas, Dwarka, South Delhi(End-Users), East Delhi. DOWNWARD: Gurgaon(Stagnant), Rajasthan, U.P., Indirapuram, Gaziabad UPWARD situation will last for: 1-2 yrs. DOWNWARD situation will last for: 1-2 yrs.</p> <p>TABLE OF CONTENTS1. Company Profile 2. Product Portfolio 3. Introduction to Real Estate 4. Real Estate as an Investment Option 5. Research Methodology 6. Findings &amp; Analysis 7. Conclusions &amp; Suggestions Bibliography Questionnaire</p> <p>COMPANY PROFILE</p> <p>VISION OF ANSAL APITo fulfill growing aspirations of our customers by: Building world class real estate solutions Redefining lifestyle standards. IDENTITY The color Red stands for RAJA/REGAL. It stands for passion, heat, energy, dynamism &amp; purity. It exhibits groups rich heritage. Black occurs when an object absorbs all the other colors. Black is significant to the group as it represents the proposed amalgamation of all group companies into Ansal API, thereby creating the new and vibrant Sushil Ansal Group.</p> <p>The Slogan, Building Lifestyle since 1967, encapsulates the Groups heritage and vision in creating a better life for Indians in various sphere like- homes, offices, places of entertainment, hotels, shopping malls &amp; educational institutions. ANSAL API was established as a result of a dream, shared by its visionary founders. A dream that was to, radically improve the lifestyle standards of the citizens by building world class real estate solutions. After four decades of spectacular growth Ansal API is at a stage where the company has acquired immense experience, consolidated and established assets- physical and intellectual and at the same time retained youthful energy &amp; zeal. With foundations entrenched in the solid bedrock of technical expertise and financial stability its pinnacles are rising new heights with foresight and innovations for future requirements of resurgent India.</p> <p>Ansal API as an organization can be best envisaged as a creator of man made social infrastructure, where modern life blooms, in collaboration with the environment. The ascent of Ansal API to the top of the Real Estate acme is a direct product of Mr.Sushil Ansal's foresight and his dynamic leadership. Ansal API, the corporate manned by professionals at all levels with its strong base and lineage is now in a state of renaissance; all the companies of Sushil Ansal Group will now be under one banner i.e. the Ansal API. The new "Ansal API" identity, is the first communicator of this phase of resurgence, excellence and modernity. The rectangular shape signifies solidity, cohesiveness and strength, the red colour stands for passion, heat, energy, dynamism &amp; purity and the black colour signifies the proposed amalgamation of Ansal Township and Projects Limited into Ansal</p> <p>Properties and Infrastructure Limited. The slogan, ' Building lifestyles since 1967', encapsulates their heritage and vision in creating a better life for Indians in various spheres like - homes, offices, places of entertainment, hotels, shopping malls and educational institutions. Ansal API is focusing on ushering in new lifestyle ventures in cities likeGreater Noida, Gaziabadh. Meerut, Agra, Lucknow, Batindha, Mohali, Amritsar, Ludhiana, Jalandhar, Jaipur, Jodhpur, Ajmer, Sonepat, Panipat, Karmal, Kurukshetra, Faridabad, Gurgaon to name a few. It is said that actions speak louder than words and nothing highlights this adage better than Ansal API's effort to give something back to the society of which they are a part. Ansal API believes that today's children are tomorrow's leaders and in order to hone their young minds, Ansal API has forayed into the education sector with schools like the Chiranjiv Bharati School at Palam Vihar and Sushant Lok, premier institutions like the Ansal Institute of Technology and the Sushant Schools of Art and Architecture. Ansal API in its endeavour to fulfill its duties to payback in form of green cover for the society have created manmade verdant ambiance at projects like the Aravali Retreat, Pushpanjali Farms, Satbari Farms.</p> <p>Ansal API plans to create an ambiance of peace and tranquility for the people who have served their duties and are now in their dusk of life to relax and enjoy their retirement by building old age homes.</p> <p>Touching every facet of modern lifestyle with its signature of excellence, Ansal API has changed the skyline of India with its versatile portfolio of residential complexes, educational institutions, hotel and hospitality avenues, shopping malls, farmlands and IT parks amongst others. With its deep-rooted foundation of ethics and values, Ansal API continues to conquer new horizons, thus pioneering and identifying new vistas of growth for the real estate sector.</p> <p>PRODUCT PORTFOLIO</p> <p>1. COMMERCIAL</p> <p>2. TOWNSHIP &amp; GROUP HOUSING</p> <p>3. RETAIL/MALLS</p> <p>4. HOSPITALITY &amp; ENTERTAINMENT</p> <p>5. IT PARKS/INDUSTRIAL PARKS/SEZs</p> <p>6. EDUCATION</p> <p>7. FACILITIES MANAGEMENT</p> <p>INTRODUCTION TO REAL ESTATE</p> <p>Real estate is a 12$ billion (revenue) industry in India. There has been a rapid growth in the industry in the past few years.100% FDI is allowed in real estate development subject to minimum scale norms of either: 25 acres in case of serviced plots or integrated townships; or 50,000 sq. mtrs. of built-up area for construction development projects. Commercial and office complexes mushrooming in major Indian metros present a minefield of opportunities. Over 20 million new housing units required in the next 5 years. The real estate market is projected to grow to $50 billion by 2010 CAGR of over 30% p.a. is expected over the next five years. Increasing demand for commercial and office space especially from the rapidly growing Retail, IT and Hospitality sectors and the Urban Infrastructure Renewal mission is expected to give a boost to the sector. Other factors include: $11.5 billion earmarked over the next five years for 60 cities. Investment opportunities exist in almost every segment business ; About 20 million new units expected to be built in five years in office space for IT and five-fold increase in office space requirement over the next 3 years. Commercial space for organized retailing: 200 million sq. ft. by 2010.</p> <p> Hotels and hospitality: Over 50,000 new rooms in the next 5 years; Investment opportunity of over $50 billion in the next five years.</p> <p>Various Real Investment Options are:</p> <p>Real Estate Investment Options Agriculture Land Residential/Plotted development Apartments/Villas Commercial Spaces Farm Houses</p> <p>Real Estate Mutual Funds</p> <p>AGRICULTURE LAND Agriculture Land in India is the most protected area by the State and Central Govt. Identification of Agricultural Land requires a bit of analysis about the rate and assessment of future development in the nearby area. Due to fast growing urbanization and development of infrastructure the price of agriculture land zooms quickly. Agricultural land can be given on contract to cultivators with sharing of crop model, to make small but regular tax-free earnings. Rural agriculture land is completely free from capital gains tax and income from lease out or sale of crop is also exempt as per the provision of IT Act, 1961.</p> <p>RESIDENTIAL PLOTTED DEVELOPMENT Most state governments have loosened their fists and have implemented land reforms that make the conversion of agricultural land into residential land much easier. The process of township development takes a period of about 5 to 10 years. Initially, the prices of plotted development are quite low which rapidly increases with the pace of development...</p>