A

PROJECT REPORT
ON
CUSTOMER PERCEPTION & AWARENESS LEVEL ABOUT
VARIOUS FINANCIAL INSTRUMENTS

SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF THE

DEGREE OF MBA (FM)
2020-2022

UNDER THE GUIDENCE OF: SUBMITTED BY: SIMRAN KAUR SYAL

Dr. KAVITA SHARMA ENROLLMENT NO: 02612359520

DELHI INSTITUTE OF ADVANCED STUDIES

 6, Pocket E, Sector 25, Rohini, Delhi, 110085
(NAAC ACCREDITED ‘A’ GRADE INSTITUTE)
(APPROVED BY AICTE & AFFILIATED WITH GGSIPU UNIVERSITY FOR B.COM(H), BBA,
MBA, MCA PROGRAMMES)
 DECLARATION

This is to certify that I have completed the Summer Training Project titled “CONSUMER
BUYING BEHAVIOUR ANALYSIS OF REAL ESTATE MARKET” under the guidance of
Dr Kavita Sharma in partial fulfilment of the requirement for the award of the Postgraduation
degree of Master of Business Administration at Delhi Institute of Advanced Studies Delhi.

This is an original piece of work and I have not submitted it earlier elsewhere.

Date:

Student Name: - Simran Kaur Syal

Enrolment No- 02612359520

 ACKNOWLEDGEMENTS

On the Successful Completion of this report, I would like to express my gratitude to everybody
who assisted and guided me in completing this report and making it a memorable and successful
one.

I wish to extend my deep and sincere thanks to Mr. VIVEK DHINGRA, Designated Partner at
INVESTLOFT. whose motivation, constructive ideas, and vital inspiration to work hard and set
high targets propelled me to learn a lot about the real estate market of Delhi and India and for his
support throughout this analysis and report preparation phase. The results and learning from this
comprehensive research project helped me in gaining in-depth knowledge of the subject and gave
necessary direction to my cognitive process.

I am gratefultoDr Kavita Sharma, lecturer at Delhi Institute of Advance Studies for supporting
and guiding me throughout the project and for providing me the opportunity & means to complete
this project.

Date:

Student Name: -Simran Kaur Syal

Course: - MBA FM
 EXECUTIVE SUMMARY

Most real estate study are based on neoclassical economics. Consumers are expected to make
real estate decisions that maximize their utility and wealth given price and income constraints.
Tastes and preferences are taken as given. The outcomes of consumer actions are used to
inferthese preferences. The study of real estate would benefit from an expansion to include
consumer behavior concepts from sociology and psychology as synthesized through marketing
.Inclusion of these concepts in real estate education will help real estate analysts better explain
and predictthe behavior of decision-makers in real estate markets. This paper will present a
review of theconsumer behavior literature relevant to real estate and suggest how these concepts
could expand real estate study.
 Table of Contents
ChapterI-

1) Introductionof theTopic.....................................................................................................

2) Objectivesof study....................................................................................................................

3) Period of study..........................................................................................................................

4) Theoretical Background...........................................................................................................

a) Application of performanceappraisal results..........................................................................

b) Potentialbenefitsof performanceappraisal..............................................................................

c) PerformanceappraisalsysteminEscortsLtd….........................................................................

CHAPTERII-

1) ResearchMethodology
 ResearchDesign…...................................................................................................................
 Datacollection…......................................................................................................................
 Samplesize...............................................................................................................................

2) Scope of the study................................................................................................................

3) Limitationsof thestudy.........................................................................................................

Chapter III-

1) Industryprofile...........................................................................................................................

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

ChapterIV –

1)Data analysis &Interpretation…....................................................................................................

ChapterV-

1) Findings...................................................................................................................................
2) Suggestions&Recommendations..............................................................................................

3) Conclusion………………………………………………………………………….

Bibliography………………………………………………………………………….

Annexure ………………………………………………………………………………
 CHAPTER 1
INTRODUCTION
Most real estate study is based on neoclassical economic theory that assumes that people
makerational decisions about renting and buying real estate as part of their attempt to maximize
utility.While recognizing that real estate markets are imperfect, most real estate researchers do
notexamine the influence that the diversity of real estate consumers has on the demand for
realestate. Consumers are complex human beings driven by internal and external forces, some
ofwhich arebeyondtheir control and many of whichtheyarerelativelyunaware.
Rather than ignore the human element of decision making or put all aspects of
nonfinancialdecision factors in a black box called “tastes and preferences,” real estate students,
professors,and practitioners can benefit from integrating the study of consumer behavior with the
financialeconomic approach to real estate study. Greater knowledge of real estate consumers and
theirbehavior will lead to better understanding and prediction of decision makers’ actions in the
realestate market. The purpose of this paper is to present some of the most common
consumerbehavior concepts and explain how integration of consumer behavior theories and
understandingwouldimproverealestatestudy.

THEORITICALBACKGROUND

THESTUDYOFCONSUMERBEHAVIOR

Consumerbehavioristhestudyofindividuals,groups,ororganizationsintheselecting,purchasing,

using, anddisposing ofgoodsand servicesto satisfy needsanddesires.

Consumerbehaviorexaminesnotonlywhatbehaviorsconsumers’exhibitbutalsothereasonsfor those

behaviors. On a macro level, marketers are interested in demographic shifts as well associety’s

values, beliefs and practices that affect how consumers interact with the marketplace.On a micro

level, consumer behavior focuses on human behavior and the reasons behind thesebehaviors.

Thus, concepts drawn from psychology and sociology are prominently reflected in

theconsumerbehaviorliterature.Thefollowingsectionsdescribetheseconceptsastheyareapplicabletot

hedevelopmentofanincreasedunderstandingofrealestatedecisionsinaconsumerbehaviorcontext.
CONSUMERCHOICEANDDECISIONMAKING

Muchofthestudyofconsumerbehaviorfocusesonconsumerchoice.Utilitytheoryineconomics and

attitude theory in social psychology have strong similarities and constitute a basisfor consumer

decision and choice processes. Consumers purchase goods and services for thebenefits derived

from their use. While the study of economics focuses on outcomes, consumerbehavior

emphasizes the process. Rather than assuming perfect conditions, consumer behaviorresearchers

explicitly recognize the impact of situational elements on behavior and the

varianceamongindividuals.

Most real estate purchases and leases would be considered high involvement goods that

wouldrequirecomplexdecision-

making.Thethreemajorcomprehensivemodelsofthistypeofconsumer decision making

(Engel,KollatandBlackwell;HowardandSheth;Nicosa) trace the psychological state and behavior

of individual purchasers from the point at whichthey perceive a need through the search for

information, evaluation of alternatives, purchase, andfinal evaluation of the consequences. The

assumption is that a purchase act is preceded by

asequenceofmentalinformationprocessing.Thisinvolvesacognitivefunctioninformingbeliefs, an

emotional component in developing positive or negative attitudes, and a reactionthrough being

motivatedtoselectandbuy.

DECISIONRULES

When evaluating alternatives, such as choosing which property to purchase or rent,

consumerschoose from a list of acceptable alternatives (evoked or consideration set) based on the

criteriathey have selected as being important. For a product to be considered by a consumer, he

mustknowthatitexistsand perceivethat itcan satisfy hisneeds.

The criteria a consumer uses to choose between alternative products are the product attributes
theconsumer considers important. Consumers may make the purchase decision using

compensatoryor non-compensatory decision rules. With a compensatory decision rule, the

consumer identifiesthe important attributes, rates the alternative products on each attribute, and

selects the productwith the highest score. With a simple additive rule, the consumer selects the

product that isjudgedto havethelargestnumberof positiveattributes.

This is a relatively simple rule used most often when motivation or ability is limited (Alba

andMarmorstein).Thus,aconsumermightchoosetheapartmentthatoffersapool,exerciseroom,built-

inwasheranddryer,but inconvenientlocation overan apartment with apoolandaconvenientlocation.

Theweightedadditiveisamorecomplexcompensatoryruleinwhichtherelativeimportanceofeachprodu

ctattributeisalsofactoredintothedecision.Therefore,theconsumercompletesthe

more complicated task of computing a summated weighted score for each product on the

salientattributesand selectstheproductwiththehighestoverallscore.

In contrast, no compensatory decision rules do not balance all attributes and determine

whetherthepositivesoutweighthenegatives.Rather,iftheproductdoesnotmeetaminimumstandardon

an important attribute, then it will not be considered. Using a conjunctive decision rule,

theconsumersetsminimumacceptablelevelsonallimportantattributesandeliminatesanyalternative

that does not meet all the minimums. This helps consumers to narrow down

thechoicesforfurtherevaluation.Ifnoneoftheproductsmeetsallthecutoffrequirements,eitherthe

consumer must change the minimums acceptable or change his or her decision rule (Gretherand

Wilde). In the above example, if the tenant requires a pool, exercise room, built-inappliances,

and convenient location, then neither of the apartments would be acceptable. Theconsumer will

either continue to search for the appropriate property or compromise on herstandards.

Withthelexicographicrule,theconsumerfirstrankstheattributesintermsofperceivedimportance.
Thenthealternativesarecomparedon thisonemostimportantattribute.If one scores sufficiently high

on this most important attribute, then it is selected. If two or more

areperceivedasequallygood,theyare thencomparedonthesecondmostimportant attribute.This

process continues until the tie is broken. Therefore, if a tenant says she selected

anapartmentbecausethebalconyhasFrenchdoorsinsteadofslidingdoors,itisimportantto

rememberthatthisdifferencemayreflectthetiebreakerafterother,moreimportant,attributesweredeem

edto beequal across apartmentoptions.

Consumers may use a combination of decision rules in choosing a property. First, they may use

aruletonarrowdownthechoicesetwithsomesimplecutoff,andthentheymayapplyamore

complex compensatory rule to make the final choice. Some criteria are more salient than

othersand those attributes will have a greater impact or importance in determining consumer

selections.Whetheracharacteristicissalientdependsonthealternativesandconsumers’evaluationofth

em. If, for example, the consumer with small children believes all neighborhoods in the cityoffer

equally good schools, then school quality is not a deciding factor in which house to buy.Salient

attributes that actually influence the evaluation of alternatives are known as determinantattributes

(Alpert). The particular criteria consumers use in their decision making

dependonsituationalinfluences,similarityamong choices,motivation,involvement,andknowledge.

Decisions involving widely disparate alternatives (a single family detachedhouse, a mobilehome)

may require the consumer to use moreabstract evaluativecriteriato

evaluatethealternatives(Bettmanand Sujan; Corfman; Johnson). The more similar the options, the

more the consumer

canrelyonconcretecriteriaandpricetomakecomparisons.Theconsumer’smotivationforpurchasing a

property will directly affect the criteria used to evaluate alternatives. Experiencedconsumers are

more likely to know which dimensions are useful for comparing alternatives.First-time buyers
are more susceptible to external influences determining what criteria they useduring decision-

making(Bettmanand Sujan).

The average consumer’s lack of information about all available real estate options may result

inthe consumer not purchasing the property that would best serve his needs because he is

unawarethat the property exists. Others may make less than optimal decisions because

comparing all

thepropertiesonallthesalientattributesmaybetoocomplex.Theymayresorttoanocompensatory

decision-making process to make the procedure manageable. If consumers

areusingnocompensatoryrulestomakedecisions,thentherealestateappraiserneedstoidentifywhich

property characteristics are being used to screen properties and remove the eliminatedproperties

from the list of comparable. Otherwise, the analyst may overestimate the contributionof certain

attributes to value. Property developers and managers need to recognize whetherconsumers are

making decisions based on cutoffs. If a consumer sets an acceptable minimum astwo bathrooms,

then any house with only one and one-half bath would not be considered and ahouse with three

bathrooms may not be valued any higher than a similar house with only twobaths. Similarly, if

consumers are using lexicographic rules, then the property must be

perceivedtopossessanoticeablyhigherlevelofthemostimportantattribute(s)toensurebeingselected.In

formationsearchConsumers seek and use information as part of a rational problem solving and

decision-makingprocess. Consumers first search internally for historically gathered information

(Bettman;Punj).Experience,lengthoftimesincelast

purchase,andsatisfactionwithpreviouspurchasewillaffecttheconsumer’srelianceoninternalinformat

ion.Asmostconsumerspurchase real estate infrequently, they rarely rely solely on their past

knowledge when selecting anewproperty to purchase.

Consumersmayalsoconductanexternalsearchofpersonalandimpersonalsourcesofinformation.
Situational determinants that can constrain information search include the

quantityandavailabilityofinformationinthemarketplace andtimepressure(BeattyandSmith). Other

factors that influencesearch behavior are product determinants and

consumerdeterminants.Product determinants include a variety and type of product features. For

example, if consumersperceive great differences between products, they are likely to make more

comparisons.

Also,productscharacterizedbyinnovationsmayrequireconsumerstoupdatetheirknowledgesince

last purchase through an information search process. The relatively high price of real estate

willcreate concerns about the financial risks involved in the purchase and lead to greater search

(Kieland Layton).

Some of the consumer determinants that affect individual search behavior include

knowledge,involvement, beliefs and attitudes, and demographic characteristics. Research has

found thatproduct knowledge may be positively or negatively related to the amount of search

(Beatty andSmith;KielandLayton;NewmanandStalin;PunjandStaelin;Urbany, Dickson, and

Wilkie). Knowledge can allow the consumer to rely more heavily oninternal information, but it

can also enhance search by enabling more effective use of newlyacquired information. When

consumers feel more confident about their ability to judge products,they will typicallyacquire

more information(DuncanandOlshavsky).

Thisimpliesthattheremay be aninverted-U relationshipbetweenknowledgeand externalsearch

(Bettman and Park). Consumers with extremely limited knowledge (such as first-time

homebuyers) may feel incompetent to undertake an extensive search and analysis on

theirown.Instead,theymayrelyheavilyonotherssuchasfriends,relatives,orsalespersons.Moderately

informed consumers possess sufficient knowledge to explore and understand

moreinformation,buttheirknowledgeisnotsogreatthattheyfeelcomfortablerelyingonmemoryand
experience, sotheywill undertake moreextensive external search ontheir own.Those consumers

with the greatest knowledge of the product and market may already possess allthe information

theyneedtomakeadecisionwithouta formalextendedsearch.

Consumersdifferintheirattitudestowardshopping.Ingeneral,consumersengageinmoresearch as

their attitudes toward shopping become more favorable (Beatty and Smith, Punjand Staelin).

Individual beliefs about the cost versus benefits of search will also guidesearch (Urbany).

Research indicates that search may be related to several demographiccharacteristics (Beatty and

Smith). Age is often negatively related to search (Cole andBalasubramanian). Older consumers

have greater experience with many products so theycan rely on internal information. Higher

income consumers often search less than lower incomeconsumersbecauseofthevalue of

theirtime(Urbany).

More educated consumers usually search more, perhaps because of their greater confidence

intheir ability to undertake the search and use the information gathered effectively (Duncan

andOlshavsky). Because the modes of information search and, ultimately, decision making area

function of both internal and external influences on behavior, the remaining sections focus onthe

consumerbehaviorimplicationsofeach.

INDIANREALESTATESECTOR

The Indian real estate sector is one of the most globally recognized sectors. In the country, it

isthe second largest employer after agriculture and is slated to grow at 30 per cent over the

nextdecade.Itcomprisesfoursubsectors-housing,retail,hospitality,andcommercial.Thegrowthof

this sector is well complemented by the growth of the corporate environment and the

demandforofficespaceas well as urban andsemi-urban accommodations.

According to a study by ICRA, the construction industry ranks third among the 14 major
sectorsintermsofdirect, indirectandinduced effectsinall sectorsofthe economy.

It is also expected that this sector will incur more non-resident Indian (NRI) investments in

thenear future, as a survey by an industry body has revealed a 35 per cent surge in the number

ofenquirieswithpropertydealers.Bengaluruisexpectedtobethemostfavouredpropertyinvestmentdest

inationforNRIs,followedby Ahmedabad,Pune,Chennai,Goa,DelhiandDehradun.

India’srealestatemarketisexpectedtoincreaseseventimesby2028toreachUS$853billionby 2028

from US$ 121 billion in 2013. It is currently the fourth-largest sector in the country interms of

foreign direct investment (FDI) inflows. FDI in the sector is estimated to grow to US$25billionin

10 years.

Realestatecontribution toIndia’sgrossdomesticproduct(GDP)isestimated toincreasetoabout13 per

cent by 2028, on the back of increasing industrial activity, improving income level

andurbanization.

Private equity (PE) investments in real estate in 2013 stood at US$ 1.1 billion, a 13 per

centincrease in INR terms from US$ 1.2 billion in 2012. Total number of deals increased from

34 in2012to40 in2013, with an averagedealsize of US$ 28.0 million.

The Government of India has allocated US$ 1.3 billion for Rural Housing Fund in the

UnionBudget 2014-15. It has also allocated US$ 0.7 billion for National Housing Bank (NHB)

toincrease the flow ofcheapercredit foraffordablehousingfor urbanpoor.

The entry of major private players in the education sector has created vast opportunities for

thereal estate sector. Emergence of nuclear families and growing urbanisation have given rise

toseveral townships that are developed to take care of the elderly. Growth in the number of

touristshas resulted in demand for service apartments. This demand is likely to be on the uptrend

andpresentsopportunitiesfor theunorganisedsector.
MARKETSIZE

The Indian real estate market size is expected to touch US$ 180 billion by 2021. The

housingsector alone contributes 5-6 per cent to the country's gross domestic product (GDP).

Also, in theperiod FY08-20, the market size of this sector is expected to increase at a compound

annualgrowth rate (CAGR) of 11.2 per cent. Retail, hospitality and commercial real estate are

alsogrowingsignificantly,providingthemuch-neededinfrastructureforIndia'sgrowingneeds.

Real estate has emerged as the second most active sector, raising US$ 1.2 billion from

privateequity(PE) investorsin thelast10 months.

Foreign investors have bought tenanted office space worth over US$ 2 billion in India in 2014,

afour-fold rise compared to the previous year, in order to increase their rent-yielding

commercialassetsinAsia'sthirdlargesteconomy.

Accordingto a study by Knight Frank,Mumbai is thebest city in Indiafor commercial realestate

investment, with returns of 12-19 per cent likely in the next five years, followed byBengaluru

and Delhi-National Capital Region (NCR). Also, Delhi-NCR was the biggest officemarket in

India with 110 million sq ft, out of which 88 million sq ft were occupied. Sectors suchas IT and

ITeS, retail, consulting and e-commerce have registered high demand for office spacein

recenttimes.

Delhi’s Central Business District (CBD) of Connaught Place has been ranked as the sixth

mostexpensiveprimeofficemarketintheworldwithoccupancycostsatUS$160persqftperannum,accor

dingto asurveybyCBRE.
INVESTMENTS

The Indian real estate sector has witnessed high growth in recent times with the rise in

demandforofficeas wellas residential spaces.

Blackstone Group Lp is all set to become the largest owner of commercial office real estate

inIndiaafterathree-year acquisitiondriveinwhichitspentUS$900milliontobuyprimeassets.

AccordingtodatareleasedbyDepartmentofIndustrialPolicyandPromotion(DIPP),theconstruction

development sector in India has received foreign direct investment (FDI) equityinflowsto thetune

ofUS$24,012.87millioninthe periodApril 2000-December 2014.

Some ofthemajorinvestments inthissectorareasfollows:

 GoogleCapitalhasinvestedinBengaluru-

basedonlinepropertysearchplatform,CommonFloor.com.

 Omkar Realtors and Developers Pvt Ltd is in talks to raise Rs 400 crore (US$

66.68million)fromKKRIndiaAssetFinancePvtLtd,thelocalarmofglobalinvestorKohlbergK

ravis Robertsand CoLP(KKR).

 Goldman Sachs Group bought shares worth Rs 255 crore (US$ 41.23 million) in

VatikaHotelsPvtLtd,acompanyownedbyrealestateandhospitalityfirmVatikaGroup.

 SoftBank Internet and Media Inc will invest, along with Falcon Edge Capital and

others,US$ 90 million in Locon Solutions Pvt Ltd, which runs Housing.com - a realty

website.The SoftBank Group will become the largest investor in Housing.com after this

round offunding.

 TheQatarPrince,HamadbinKhalifaAlThani,planstoinvestRs1,000billion(US$

16.17billion)overthenextfiveyearsinatleast10smartcitiesofIndia.Hehasalready
 tiedupwithaDelhi-basedbusinessmanfortakingtheinvestmentforwardthroughprojectsin

realestate, seaportsand airports,besidessmartcities.

 Real estate firm Supertech has planned to invest about Rs 2,000 crore (US$

323.49million) in Gurgaon over the next few years by launching several luxury and

affordableprojects.

GOVERNMENTINITIATIVES

Under the Sardar Patel Urban Housing Mission, 30 million houses will be built by 2022,

mostlyfor the economically weaker sections and low-income groups, through public-private-

partnership(PPP), interest subsidy and increased flow of resources to housing sector', according

to Mr

MVenkaiahNaidu,UnionMinisterofUrbanDevelopment,HousingandUrbanPovertyAlleviationand

ParliamentaryAffairs, Governmentof India.

The Government of India along with the governments of the respective states have taken

severalinitiatives to encourage thedevelopment inthe sector.Some ofthemare asfollows:

 TheGovernmentofMaharashtrahasannouncedaseriesofmeasurestobringtransparencyand

increase theease ofdoingbusinessin thereal estate sector.

 The Government of India has relaxed the norms to allow foreign direct investment

(FDI)intheconstructiondevelopmentsector.

Thismoveshouldboostaffordablehousingprojectsand smart citiesacross the country.

 TheSecuritiesandExchangeBoardofIndia(SEBI)hasnotifiedfinalregulationsthatwill govern

real estate investment trusts (REITs) and infrastructure investment trusts(InvITs). This

move will enable easier access to funds for cash-strapped developers andcreate a new
 investment avenue for institutions and high net worth individuals, andeventuallyordinary

investors.

 The Telangana Real Estate Developers' Association (Treda) plans to host the Fifth

TredaProperty Show 2014 at Hitex Centre, Hyderabad. The show will be open to a mix

of thepopulace,includingprospectivepropertypurchasers,investors,architects andothers.

 The State Government of Kerala has decided to make the process of securing

permitsfromlocalbodiesforconstructionofhousessmoother,asitplanstomaketheprocessonlin

ewiththelaunchofasoftwarecalled'Sanketham'.Thiswillensureamorestandardisedprocedure,more

transparency,andlesscorruption andbribery.

ROADAHEAD

Responding to an increasingly well-informed consumer and keeping in mind the globalization

ofthe Indian business outlook, real estate developers have also shifted gears and accepted

freshchallenges.

The most marked change has been the shift from family owned businesses to

professionallymanaged ones. Real estate developers, in meeting the growing need for managing

multipleprojects across cities, are investing in centralized processes to source material and

organizemanpower and hiring qualified professionals in areas like project management,

architecture andengineering.

ThegrowingflowofFDIintoIndianrealestateisencouragingincreasedtransparency.Developers,inord

ertoattractfunding,haverevampedtheiraccountingandmanagementsystemstomeetduediligencestan

dards.
INDIAN REAL ESTATE MARKET PERMEATES TO SMALLERTOWNSAND

CITIES

According to leading global property consultancy firm Knight Frank, the real estate action is

nolonger limitedto the large metropolisesof India but has now permeatedto the

burgeoningsmallertownsandcities.TheseemergingcentersofgrowtharelendingsparkletoIndia'sboo

mingeconomy.What is leading this transformation?

According to Research, the upswing of the Indian real estate sector has been an outcome of

anumber of positive micro and macro factors. Consistent and sustaining GDP growth,

expandingservicesector,risingpurchasingpowerandaffluence,proactiveandchanginggovernmentpo

licieshaveall lentmomentum tothisrapidly growingsector.

Accounting for almost 80% of the total office space absorption, the Indian IT/ITES sector

hasbeentheprimarydemanddriver.India'slowcost-highqualityandproductivitymodelhasgivenit a

leadership position in the outsourcing arena. In a bid to scale up their operations and toremain

globally competitive, the Indian IT/ITES companies are exploring the smaller towns

andcities.Risingmanpowerandrealestatecosts,plaguingattritionlevelsandveryoftenriskmitigationha

vebeenthekeyreasons for thismovement.

Positiveeconomicgrowthhasalsotranslatedinrisingdisposableincomesandgrowingaspiration levels

across India. Rising consumerism has created a demand for new retailing andentertainment

avenues. Realizing that consumers across cities have similar needs, albeit the scalemay vary,

new age retailers are vying to cash in on the first mover advantage and are expandinginto

hitherto unexplored smaller cities. Advent of organized retailing has also translated into

realestate growth intheseemerging locations.

Growth of the Indian 'Rich' (annual income>USD 4,700) and 'Consuming' (annual income

USD1,000-4,700) class coupled with falling interest rates and other fiscal incentives on home
loanshas increased the affordability and the risk appetite of the average Indian consumer

therebyleadingtoasubstantialriseindemandforhousing.Thishasbeenfurtherfueledbytheincreaseinth

esizeof25-55agegroupofearningpopulationandtheemergenceofdoubleincome,nuclear families.

Over the last decade the average age of Indian home loan borrower has reducedby10 years.

Another variable facilitating real estate growth in India is the growing urbanization. According

toUnited Nations Population Division, the urban population in India will continue to grow at a

rateof 2.5% per annum for the next two and a half decade. As per the Census of India 2001, 41%

ofthe total population of India will be living in urban areas by 2011. The number of cities with

apopulationofonemillionormoreisalsoisexpectedtodoublefrom35recordedin2001to70by2005.This

increaseinpopulationwillgenerateincrementaldemandforhousingandotherrealestate components.

Allthesefactorstogetherwithincreasedliquidityintherealestatesectorthroughtheinternational real

estate funds and private equity funds will result in radically transforming thereal estate landscape

over the next 3-5 years. India's investment scenario is already undergoing asea change and has

been seen to be making roads in rural India with telecom, rural retailing,agricultural supply chain

and logistics facilities, micro-credit, etc. All these factors foretell thatthe realestate

growthwillsoon spreadoutoftheestablished boundaries.

However, to support this growth and to make it more expansive, a lot needs to be done.

Foremostis the thrust on infrastructure. According to a World Bank estimate, India needs to

invest anadditional3-

4%ofitsGDPoninfrastructuretosustainitscurrentlevelsofgrowthandtospreadthebenefitsofgrowthm

orewidely.Somepositivestepshavealreadybeentakeninthisdirection.Hugeinvestmentsininfrastructu

retothetuneof$350billionhavebeenenvisagedover the next five years. Connectivity may get a

boost with the completion of ~13,000 kms ofroads under the Golden Quadrilateral, North-South-

East-West (NSEW) corridor and with 4-laning of all the major national highways. This will
further facilitate the economic developmentofsmallertowns andcitiesin thecountry.

Major real estate destinations of the country and some other emerging towns can be

classifiedinto three broad categories depending upon the stage of real estate development that

each one ofthemis undergoing.

Tier I Cities: Bangalore, Mumbai and NCR Characteristics: Fairly well established real

estatemarket. Demanddrivers quitepronounced.

Tier II Cities: Hyderabad, Delhi, Chennai, Pune and Kolkata Characteristics: Growing realestate

markets. Experiencingheightened demandandinvestments.

Tier III Cities: Chandigarh, Delhi and Kanpur, Guwahati, Bhubaneswar, Jaipur,

Ahmedabad,Surat,Nagpur,Indore,Goa,Visakapatinam,Mysore,Coimbatore,Kochi,Vijaywada,Ma

ngalore,Trivandrum and Baroda Characteristics: Real estate markets yet to establish.Perceived to

havesubstantial potentialdemand.

As the Indian real estate sector moves higher on the growth curve, a number of state capitals

andsmaller cities which have relatively better infrastructure and are able to support higher

economicgrowth have come into limelight. These emerging growth centers are characterized by

low realestate costs, availability of land for development, untapped manpower pool and rising

quality

oflife.Manyofthesetownshaveindustrialandtourismdriveneconomicbasethatcanbeleveragedforgro

wth.Anticipatingthelatentdemandinthesemarkets,anumberofrealestatedevelopers

andretailershavechalked out expansiveplanstoharnesstheopportunity.

REALESTATEPOTENTIALINDELHI

According to a latest report by CRISIL (Credit Rating Information Services) Delhi real

estatemarketisgoingthroughatransitionalphasewherelotofactivitiesaregoingonthere.CRISILhaslist
edtherealtysectorofDelhicityasoneofthefastestgrowingrealestatemarketsin India. The number of

buyers and investors from national and international market investing inthe city has

alsoincreasedsubstantially.

Successful shifting from traditional homes to new-age high rise apartments among the modern-

day buyers is one of the prime reasons for this growth. To elaborate further Delhi’s realtymarket

can be broadly divided into 2 main zones: Old Delhi and New Delhi. People inOld Delhi prefer

independent housing (for example DLF Gardencity plots) whereas

NewDelhiisdominatedbyhighrisehousingsolutions.Beingthecapital of the country the city has

witnessed a great infrastructural development that gave a much needed boostto

therealestatesector.

Adding more to it 3 proposed metro projects will give an additional push to Delhi market andwill

help in unlocking its real potential. Talking further under-construction bridges across

GomtiRiver, expressways connecting Delhi to nearby cities has played a pivotal role in

expandingthe realty section here. Trans region especially Model Town Phase I, Phase II and

Phase III are the main centres of development attracting both the developers and the

endusers.Theregionnotonlyboastsofgoodroadnetworkbutalsoofferwell-plannedcivicinfrastructure

and close proximity to nearby places. Sahara Hospital and Ram Manohar LohiyaHospital

aretwomajorhospitalslocatedin the Rohini area.

Delhi Industrial Development Authority (LIDA) is also implying for the development of

cityrealtymarketespeciallytheDelhi-KanpurRoadsectionwheremanynewprojectsarecoming up in

near future. To sum it all Delhi market is going to establish its mark in comingtimesthus itis

theright timetoinvesthere.

DELHIMETROTOBOOSTREALTYMARKET

The Delhi realty market is in for a major boost with the much-delayed Delhi Metro railproject on
track.

The project, estimated around Rs 15,000 crore, was given the go-ahead by the state Cabinet

lastweek. The first phase, estimated at Rs 8,000 crore, is likely to be up and running by 2016-

17.Players are optimistic that once the project starts, local realty would become ‘hot property’,

akinto what DelhiMetro didto the sector in thenationalcapitalregion(NCR).

Besides, the state is also considering steps to unlock land value in the vicinity of the metro

routebyofferinghigher floor arearatio,flexibleland use, etc.

He said while the areas on the periphery of the metro route would see maximum appreciation

inrates, faraway ones could benefitto the extentof 100per cent.

Already Delhi property rates have seen upward spiral with the circle rates hiked by almost20-

25percenteffectivefromAugust2013.

Real Estate Developers Association of UP president Sudhir S Halwasiya said Delhi

propertymarket, which had been sluggish of late, would definitely get an upsurge with the

additional ofthisrapid transportinfrastructure.

With explosive horizontal growth in major tier II and II towns across India, Delhi being

noexception, realty has been witness to steady organic and incremental growth on the demand

forhousing.

The suburban areas have been bursting at the seams with real estate projects, both by

reputednationalbrandsviz. DLF,Omaxe,Parsvnathetc, andlocalplayers.

The project would be funded 50:50 by the Centre and UP on the lines of Delhi Metro

RailCorporation (DMRC).

Both the joint venture partners would infuse 20 per cent each as equity in the project, while

therest of the funds would be raised through debt. A sub-committee had already been

constitutedunderRajivAggarwal,statehousingsecretary,toidentifyalternativesourcesoffunding.
SOMEREALESTATEPLAYERSINDELHI

 DLF

 PARSVNATH

 IVRCL

 ANSALAPI

 ELDECOHOUSING&INDUSTRIALLIMITED

 UNITECHLIMITED

 SAHARCITYHOMES

 RRGROUP

 SASGROUP

 RUDRAREALESTATEDEVELOPERS

 HALWASIAPROPERTIES

 NDBGGROUP

 SHINE

 KASHIDEVELOPERS

 EARTHINFRA

 JDGROUPLIMITED

 ANANDPROPERTIES

 ASTHAINFRAHEIGHTS

 AGHOUSING&PROPERTIESLTD.

 SHRILAXMIBUILDERS
 CHAPTER 2
COMPANY PROFILE
Investloft's approach aims at maximizing returns for our clients. We are a professional advisory and
consulting practice that believes in numbers, we are data-driven, scientific, logical yet empathetic. Our
rich database and network of associates ensure that we provide a bouquet of curated options to meet our
client requirements. At Investloft we invest in our relationships and strongly believe that the most
valuable asset is time. With Investloft on your side, you have a very experienced team that works on all
the details while you make the big decisions. We work as growth partners for our clients and value
every relationship. We are your one-stop to get the devil out of the detail so that you can make the best
investment and business decisions. Investloft was founded With a combined experience spanning
almost two decades, you have a team of highly experienced professionals in your corner working
towards a win. We work with all leading hotel and retail brands and several Investors for their
expansion in India as Investment and Transaction advisory partners.

MISSION&VISION

OurMission

Toschemesustainablerealestatedevelopmentsthroughcontinuousinnovationandbestpracticesto

providequalitylifespaces to customersacrossallsegment.

OurVision

To create sustainable real estate developments through continuous innovation and best

practicesto providequalitylifespaces to customersacrossallsegment.

ConcernedLiving

At one end of the 'Concerned Living' continuum are customers and their preferences and, at

theother, the company’s commitment to environmentally sustainable development. Remaining

truetoourvaluesandprinciples, Investloft

believesincreatinglivingandworkingthatareenvironmentally friendly, energy efficient, cost

effective yet stylish. Harmony between form

andfunctionisthefoundationoftheConcernedLivingapproach.Inkeepingwiththisfocus,Investloft

creates world class living spaces suited to Indian tastes and needs, so that its customerscan
enjoyhealthylifestyles.

OURVALUES

Customersfirst

Catering to our clients’ needs, preferences, and expectations effectively and speedily is part

ofour DNA. We believe in providing personal and individual service which we assess against

corevaluessuchasintegrity,ethicsanddiligence.

Innovation

Weknowwecanachieveourgoalofspearheadingtheregionalrealestatebusinessonlybyembracinginnov

ative ideasandtechnologyina constantlychanging environment.

Quality

Adherence to high quality standards is the key to delivering value for money to our customersand

creating client delight. Quality is the driving force behind our work and our products.

Webelievein "doing itrightthefirsttime."

Integrity

AtInvestloft,webelieveinscrupulousprofessionalintegrity.Wedeliverwhatwepromise!

ResponsibleCorporateCitizenship

As responsible corporate citizens, we provide an enhanced living experience to our

customersthroughsustainabledevelopment.Weareactivelyinvolvedinexemplaryenvironmentalprac

ticesas caring corporate citizens. Embracing and promoting sustainable development is at the

heart ofourcorestrategy.
Clientele
 CHAPTER 3
LITERATURE
REVIEW
Most real estate study is based on neoclassical economic theory that assumes people make rational
economic decisions about renting and buying real estate as part of their attempt to maximize utility.
Most real estate researchers and educators do not examine the human influences that real estate
consumers have on real estate demand. Instead, most real estate educators continue to approach the
market from a production orientation rather than a consumer marketing orientation. Analysts
stratify real estate markets by property types that are defined by physical construction rather than
consumer benefits. Property is valued based on physical attributes rather than consumer perception
of the space, atmosphere and linkages. However, residential and other real estate customers such as
retail tenants often consider nonfinancial, perceptual factors in selecting a site (Smith, Gararino and
Martini, 1992). Rather than ignore the human element of decision-making, or put all aspects of
nonfinancial decision factors in a black box called ‘‘tastes and preferences,’’ real estate students,
teachers, researchers and practitioners can benefit from integrating the study of consumer behavior
with the economic approach to real estate. Greater knowledge of real estate consumers and their
behavior will lead to better understanding and prediction of decision-makers’ actions in the real
estate market.

The Study of Consumer Behavior

Consumer behavior is the study of individuals, groups or organizations in obtaining, using and
disposing of products and services, including the decision processes that precede and follow these
behaviors (Engel, Blackwell and Miniard, 1995). Consumer behavior examines not only
consumers’ actions, but also the reasons for those

behaviors. On a macro level, marketers are interested in demographic shifts as well as society’s
values, beliefs and practices that affect how consumers interact with the marketplace. On a micro
level, consumer behavior focuses on human behavior and the reasons behind these behaviors. Thus,
concepts drawn from sociology and

psychology figure prominently in the study of consumer behavior. The following sections describe
these concepts as they are applicable to the development of an increased understanding of real
estate decisions in a consumer behavior context.

Consumer Choice and Decision-Making

Much of the study of consumer behavior focuses on consumer choice. Utility theory in economics
and attitude theory in social psychology have strong similarities and constitute a basis for
examining consumer decision and choice processes. Consumers purchase products and services for
the benefits derived from their use. While the study of economics focuses on outcomes, consumer
behavior emphasizes the process. Rather than assuming perfect conditions, researchers of
consumer behavior explicitly recognize the impact of situational elements on behavior and the
variance among individuals faced with the same conditions.

Most real estate purchases and leases are considered high involvement goods1 that require complex
decision-making.2 Thus, the three major comprehensive models of complex consumer decision-
making (Nicosa, 1966; Engel, Kollat and Blackwell, 1968; and Howard and Sheth, 1969) would be
applicable to most real estate decisions. These models trace the psychological state and behavior of
a consumer from the point at which he or she perceives a need through the purchase and use of a
product to satisfy that need. The following sections examine some of the key elements of these
models: information search, evaluation of alternatives and decision rules.

Information Search. Consumers seek information to help them decide how best to satisfy a need.
Two well established theoretical perspectives of external information search are the economic and
psychological/information processing approaches. The economic perspective examines search on a
cost/benefit basis, with consumers searching so long as the marginal benefit of obtaining an
additional piece of information exceeds the marginal cost. The psychological approach examines
the cognitive process consumers go through in deciding to search for information, gathering
information and processing the data gathered. The impact of consumer, situational and product
characteristics are considered (Schmidt and Spreng, 1996).
Consumers first check internally for information they already possess (Bettman, 1979; and Punj,
1987). Depth of experience, length of time since last purchase and satisfaction with previous
purchases will affect the consumer’s reliance on internal information (Kiel and Layton, 1981; and
Engel, Blackwell and Miniard, 1995). As most consumers purchase real estate infrequently, they
rarely rely solely on past knowledge when selecting a new property to purchase; rather they also
undertake an external information search.

The effect of quantity of previous experience with real estate on the amount and type of search
undertaken appears to vary (Newman and Staelin, 1972; Kiel and Layton, 1981; Punj and Staelin,
1983; Beatty and Smith, 1987; Urbany, Dickson and Wilkie, 1989; Baryla and Zumpano, 1995;
and Anglin, 1997). One the one hand, knowledge can reduce search by allowing the consumer to
rely more heavily on internal

information. Inversely, it can also encourage search by enabling more effective use of newly
acquired information. When consumers feel more confident about their ability to judge products,
they will typically acquire more information. This implies that there may be an inverted-U
relationship between knowledge and quantity of external search (Bettman and Park, 1980; and
Moorthy, Ratchford and Talukdar, 1997).

Consumers may obtain external information directly from personal inspection or from other
sources such as real estate brokers, newspapers, and friends and relatives (Clark and Smith, 1979;
Talarchek, 1982; and National Association of Realtors, 1989).

Consumers with extremely limited knowledge (such as first-time homebuyers or interurban

movers) rely heavily on personal sources such as friends, relatives and real estate agents for
information (Kaynak, 1985; and National Association of Realtors, 1990). Meanwhile, moderately
informed consumers possess sufficient knowledge to explore and understand more information, so
they will undertake more extensive

external search on their own. Those consumers with the greatest knowledge of the product and
market may already possess all the information they need to make a decision without a formal
extended search of any type.

Experience may also affect what type of information is gathered. Experienced consumers know
which dimensions were useful in the past for comparing alternatives.
However, inexperienced buyers are more susceptible to external influences such as real estate
agents in determining what criteria they should use to select a property (Hempel, 1969; and
Bettman and Sujan, 1987).

A consumer’s beliefs and attitudes may affect external search. Some consumers enjoy the shopping
process more than others do and like searching for information (Punj and Staelin, 1983; and Beatty
and Smith, 1987). They will want to visit open houses and inspect more properties before making a
decision just because they enjoy the process. This may help explain why Baryla and Zumpano
(1995) found that visiting more houses per week with a real estate agent was associated with longer
search time. Consumer search is also related to demographic characteristics (Beatty and Smith,
1987). For example, age is often negatively related to amount of information search (Hempel,
1969; Clark and Smith, 1982; and Cole and Balasubramanian, 1993). This may be reflective of the
greater accumulated experience and knowledge as one ages creating a reduced desire for additional
information. Another characteristic that appears related to the amount of search is education.
Consumers that are more educated usually search more, perhaps because of greater confidence in
their ability to undertake the search and use the information gathered effectively (Hempel, 1969).

Situational constraints on the consumer’s external information search include the quantity and
availability of information in the marketplace and time pressure on the 66 Journal of Real Estate
Practice and Education(VOLUME 6, NUMBER 1, 2003) buyer (Beatty and Smith, 1987). The
quantity and quality of information available to real estate buyers varies by market. Many buyers
may feel they lack access to

sufficient information to make an informed decision, as is evidenced by consumers wishing they

had access to more information even after having come to a decision and purchasing a house
(Burke, Belch, Lutz and Bettman, 1979; and Cahill, 1995). Access to information within a market
is not uniform. Buyers with uneven access to information will search for differing time periods and
with differing intensity. Real estate buyers often rely heavily on real estate agents to provide them
with market information, making the agents gatekeepers who may influence the length of search
(Palm, 1976a, b; and Jud, 1983). Time constraints are reflected in real estate decisions, for
example, when a transferred worker must find a home in a new city before starting work. Time
constraints reduce the extent of real estate information search (Baryla and Zumpano, 1995).
Product determinants that can influence the need for an external information search include the
variety and type of product features and the price. For example, if consumers perceive few
differences between various available properties, they are likely to make fewer comparisons and
view fewer properties. Innovative products such as smart houses require consumers to acquire new
information to evaluate these

products and features. The relatively high price of real estate creates concern about the financial
risks involved in the purchase and leads to greater search to reduce the risk involved in evaluating
and selecting an alternative (Kiel and Layton, 1981).

Information search provides consumers with an information base for making decisions. The
following discussion describes mechanisms by which consumers use information in the evaluation
of alternatives.

Evaluation of Alternatives. Searching the market for all possible alternatives is usually impossible.
The consumer must place limits on the alternatives considered. Models of individual housing
decision-making usually involve two or three stages: the decision to move, the selection of a
destination and the selection of a particular home (Brown and Moore, 1970; Speare, Goldstein and
Frey, 1975; and Wiseman, 1980).

Talarchek (1982) and Cahill (1994) found movers use a two-stage sequence of information
gathering. First, the mover gathers information on broad-based environment and location variables
to narrow down geographic areas for consideration. Then the mover gathers information on
individual housing unit

variables. The reduced set of alternatives from which the consumer makes a choice is known in
consumer behavior as the consideration or evoked set (Engel, Blackwell and Miniard, 1995). The
consumer must determine what criteria to use in evaluating the alternatives in the evoked set to
make a final choice. Some criteria are more salient than others and those attributes will have a
greater impact in determining consumer

selections (Engel, Blackwell and Miniard, 1995). Real estate researchers wanting to identify salient
attributes have turned to surveys of recent homebuyers, retail tenants and corporate real estate
executives (Kaynak and Meidan, 1980; Freiden and Bible, 1982; DeLisle, 1984; Kaynak, 1985;
Smith, Garbarino and Martini, 1992; and Bergsman, 1993). The varied lists and importance
rankings of attributes across different cities indicate the difficulty in identifying a uniform set of
attributes that can be used in determining the value of real estate across all markets. This reinforces
the need to better understand local markets and the salient characteristics to consumers in each
market. Although a criterion may be salient in a product selection, if the consumer perceives that
all alternatives in the evoked set are equal on that criterion, then it is not relevant in choosing
among alternatives. If, for example, the consumer believes all

neighborhoods in the city offer equally good schools, then even though school quality is a very
important characteristic, it may not be a deciding factor in which house to buy. Salient attributes
that actually influence the evaluation of alternatives are known as determinant attributes (Alpert,
1971). The particular determinant attributes consumers use to make their selection may depend on
situational influences, similarity among choices, motivation and knowledge (Engel, Blackwell and
Miniard, 1995).

The situation in which a decision is made or the situation in which a product will beused may
influence the attributes used in making the selection. For example, a homebuyer making the
purchase decision alone may use a different set of criteria than a buyer who is making the decision
as part of a family. A buyer may evaluate properties differently depending on whether he is
purchasing a house to occupy

himself, furnish for his parents or rent to a tenant. Decisions involving widely disparate alternatives
(a single-family detached house, a mobile home in a trailer park and a houseboat moored at a dock)
require the consumer to use criteria that are more abstract to evaluate the alternatives (Johnson,
1984, 1989;

Bettman and Sujan, 1987; and Corfman, 1991). The more similar the options, the more the
consumer can rely on concrete criteria and price to make comparisons. Thus, identifying and
valuing the attributes used by buyers in comparing tract housing is easier than those used by
decision-makers choosing custom homes. To further examine the means by which consumers make
choices among alternatives, the following section discusses various types of decision rules that
consumers use in arriving at final decisions.

Decision Rules. Consumers may be limited in their ability to determine the optimal choice based
on all the salient characteristics (Capon and Kuhn, 1982). They may use simplified methods for
comparing alternatives on a limited number of determinant characteristics. One way to simplify the
process is to use noncompensatory decision rules. With such rules, consumers use cutoffs to
qualify products, such as setting a price range and minimum size to consider. If a property does not
possess the minimum

required on one important attribute, then it will not be considered despite its attractiveness on other
standards. Two commonly used non compensatory decision rules are the conjunctive rule and the
lexicographic rule. With a conjunctive decision rule, the consumer sets minimum acceptable levels
on all

important attributes and eliminates any alternative that does not meet all the minimums. If only one
property meets all the minimums, then the consumer will select it. If several are acceptable, then
the consumer has narrowed down the choices and can either raise the cutoffs or use another
decision rule to make the final choice. If none of the properties meets all the cutoff requirements,
the consumer must either change the acceptable minimums or change the decision rule (Grether
and Wilde, 1984). For example, Louviere and Henley (1977) found that a rental apartment with too
high a price, too far a distance from the university or too low quality would not be considered by
college students no matter how highly the apartment rated on the other two criteria.

Internal Determinants of Consumer Behavior

Each consumer possesses a unique combination of mental and emotional characteristics. This
section focuses on several established consumer behaviour classifications of these internal
characteristics, including motivation, attitudes, perception, personality, self-concept and lifestyle.

Motivation. Motivation is a need arousing a drive for a consumer to take action in an attempt to
reach a goal (Engel, Blackwell and Miniard, 1995). Needs arise from the discrepancy between
actual and desired states of being. Wants refer to specific products that consumers believe will
satisfy the need (Foxall and Goldsmith, 1994). Needs can be classified as utilitarian or
hedonic/experiential. Utilitarian needs lead to consideration of objective product attributes or
benefits, whereas hedonic needs elicit subjective responses, pleasures and aesthetic considerations
(Holbrook and Hirschman, 1982; and Havlena and Holbrook, 1986). It is common for consumers to

try to fulfill both utilitarian and hedonic needs in a single purchase (Srinivasan, 1987). Thus, when
a couple has children, they may decide to buy a single-family house both to give the family more
room than found in an apartment and to satisfy an emotional desire to put down roots. A valuation
of property based on solely physical attributes may fail to capture the value the buyer places on the
ability of the property to satisfy nonfinancial and nonphysical needs such as the desire for
permanence. A more complete real estate valuation model will incorporate the psychological
benefits the property is providing as well as the physical and financial benefits. As the discrepancy
between the desired and actual state of being increases, a condition of arousal called a drive is
activated. Some of the more common drives that trigger a housing move include: neighborhood
deterioration, change in employment, increase or decrease in income, preference for ownership,
change in stage of family life cycle, family growth and declining health (Brown and Moore, 1970;
Lyon and Wood, 1977; Yee and Van Arsdol, 1977; Hempel and Jain, 1978; Boehm and Mark,
1980; Clark and Onaka, 1983; McHugh, 1984; and Litwak and Longino, 1987). Some real estate
moves result from being pushed out of current space, while others result from being pulled to a
new location. The difference between the current and potential situation encourages the resident to
move (Clark, Knapp and White, 1996). The decision to move in real estate is often portrayed via a
stress model with stress specified either as psychological or economic (Onaka and Clark, 1983).
The models attempt to identify the point at which the discrepancy between desired and actual states
becomes great enough that the perceived benefits of moving exceed the perceived costs (Brown
and Moore, 1970; Speare, 1974; Huff and Clark, 1978; and Fokkema and Van Wissen, 1997).
Sometimes consumers are willing to endure a wide discrepancy between their desired and actual
real estate holdings because of emotional or psychological complications. For example, a retired
homeowner may prefer a house with a smaller yard, but does not want to give up the memories
associated with the family home. The consumer must overcome cumulative inertia as well as
psychological and social attachment to the house and neighborhood to make a change (McGinnis,
1968).

Attitudes. An attitude is an overall evaluation about something that combines cognitive beliefs,
emotional affects and behavioral intentions (Engel, Blackwell and Miniard, 1995). Attitudes may
vary in terms of strength, direction (positive or negative) and stability (Eagly and Chaiken, 1993).
In addition, not all attitudes are held with the same degree of confidence (Berger, 1992). Attitudes
based on direct experience with a product are usually held with more confidence than those derived
from indirect experience. Confidently held attitudes will usually be relied on more heavily to guide

behavior (Fazio and Zanna, 1978; and Berger, 1992). Consumers are more likely to search for
additional information before making a decision if they do not feel confident in an attitude.
Attitudes held with less confidence are also more susceptible to change. Given this, it would be
expected that experienced real estate consumers have developed stronger attitudes about property
types, locations and investment values than have first-time buyers. They should be better able to
articulate specific preferences and appear more logical in their real estate decision-making
processes because they would be acting in accordance with strongly held beliefs. Relatively
inexperienced buyers are likely to hold weaker opinions and be more easily swayed by salespeople.

One of the most widely accepted frameworks of the relationship between attitudes and consumer
behavior is the Extended Fishbein model, also known as the Theory of Reasoned Action (Ajzen
and Fishbein, 1980). This model states that behavior is best predicted by intention. Intention is a
function of a person’s attitude toward a behaviour contingent on subjective norms that influence
the behavior. Attitudes develop from beliefs about the favorableness of a behavior and the strength
of those beliefs. The model stresses subjective perceptions and evaluations of behavioral
consequences rather than objective measures. This is an expansion from the original multi-attribute

model that calculated a summated weighted attitude score based on salient attributes, importance
weights and beliefs about alternative products. A compositional attitude model has been used by
Lindberg, Garling and Montgomery (1988, 1989) in modelling housing preference and choice,
finding that preferences may be best predicted by a modified multi-attribute utility model, but
choice may actually rely on the use of heuristics.

Two consumers may use the same attributes to evaluate real estate choices, but have different
beliefs about property features and those features’ ability to satisfy their needs. One consumer may
believe that a two-story house design provides better separation of living and sleeping areas while
another may believe a one-story design is better. Thus, one consumer would value the two-story
house more highly and another would value the one-story house more highly even though having
separate living and sleeping quarters is an important attribute to both. Nelson and Rabianski (1988)
recognized that the value of single-family housing is a function of demographic, economic and
psychographic characteristics of the consumer. They identified housing market segments that were
defined in terms of differences in the relative importance of various criteria. Housing can be
classified into major types through the clustering of alternatives seen by most probable buyers as
providing similar use, not necessarily the most physically similar properties. In appraisal, this
would lead to setting the value for adjustments on the beliefs of similar consumers, such as through
surveys of recent buyers (Kroll and Smith, 1988). The physical and psychological factors that may
affect the perception of product attributes by the most probable buyers should also be considered
(DeLisle, 1985).

Whether a positive attitude leads to an intention to purchase a product and, subsequently, to its
actual purchase depends on several factors. Attitudes and intentions are more likely to be good
predictors of behavior when they are measured relatively close to the time when the behavior is to
occur, before situational influences and unexpected events can have an impact (Cote, McCullough
and Reilly, 1985). Thus, the question ‘‘Do you plan to move in the next three months?’’ will be a
more accurate predictor of behavior than ‘‘Do you expect to move in the next three years?’’ The
level of social pressure present in the purchasing situation also affects whether consumer behavior
will be consistent with attitudes (Ajzen and Fishbein, 1980). While a homebuyer may dislike yard
work, the social pressures to raise children in a house with a yard may interfere with the otherwise
preferred purchase. Another limitation to acting in congruence with attitudes is whether a consumer
has volitional control, that is, whether the person can perform the behavior at will (Ajzen, 1991). A
consumer may want to purchase a property, but need a lender to agree to a mortgage.
Discrimination may also limit a consumer’s ability to purchase a preferred property. Thus, real
estate researchers must attempt to identify as many of the constraints facing the consumer as
possible to accurately understand and predict behavior. In addition, the researcher should ask not
only about a consumer’s attitude toward a product, but the consumer’s intention to purchase the
product. This takes into account the price and social pressures that might inhibit a consumer from
purchasing the preferred product.

Perception. Perception deals with recognizing, selecting, organizing and interpreting stimuli to
make sense of the world (Solomon, 1996). Consumers tend to use perceptual filtering whereby they
only pay attention to stimuli deemed relevant to existing needs, wants, beliefs and attitudes and
disregard the rest (Janiszewski, 1993). For example, when someone decides to move, the person
will suddenly notice properties that may have been on the market for weeks, whereas someone who
is not interested in moving may not even notice advertisements of properties for sale or rent. An
additional element of filtering relates to maintaining cognitive consistency or the tendency to
perceive stimuli so that they do not conflict with basic attitudes, personality, motives or aspirations.
Thus, people often see and hear only that which is consistent with what they already believe. For
example, a potential buyer’s decision about a property is often made based on just the initial
impression of the exterior of the building. If the initial impression is positive, the potential buyer is
likely to notice all the good features inside the building that reinforce his initial perception and
desire to like the property. Real estate agents have long been aware of the importance of curb
appeal, which is a prime example of the impact of cognitive consistency. When a consumer pays
attention to a stimulus, he or she attaches meaning to it. The exact meaning a consumer assigns to a
stimulus depends on how a stimulus is categorized and elaborated into beliefs and attitudes in
relation to the consumer’s existing knowledge. Nasar (1989) found that people use housing
architectural style to infer the friendliness and status of its residents. However, these interpretations
varied with age, gender and social class. Thus, valuation of individual properties will vary among
individuals because of their different perceptions of the same physical attributes. As was also noted
in the discussion of motivation, to properly value attributes the appraisers need not just the
objective description of property attributes, but also the perception of those attributes by potential
buyers.

Personality and Self-concept. Personality accounts for consistent patterns of individual behavior
based on enduring psychological characteristics (Kassarjian, 1971). It is the pattern of traits and
behaviors that makes each individual unique. Personality appears to be related to several aspects of
consumer behavior, including adoption of innovations, information gathering and decision-making
(Foxall and Bhate, 1993). Consumers with risk-taking personalities are more likely to purchase
innovative properties and investments. They are likely to move more frequently and consider a
wider range of housing options. Their main goal in life is success while risk avoiders want
happiness. Their purchases are expected to reflect these different goals. People who have a high
need for cognition enjoy the effort of information-processing activities and may actively seek and
consider more information about a property before making a purchase. These consumers will want
to visit more houses before buying.

Some consumers are more self-monitoring, that is, external forces influence them less than others
(Snyder, 1979). These consumers are more likely to rely on their own knowledge, experience, and
opinions and less on salespeople in making decisions. Self-concept is an organized set of
perceptions of the self consisting of such elements as the perceptions of one’s characteristics and
abilities; the perception of oneself in relation to others; and objectives, goals and ideals that are
perceived as either positive or negative (Rogers, 1951). Self-concept is generally viewed along
several dimensions: ideal self (what one aspires to be), real self (what one thinks one actually is),
self in context (how one sees oneself in different social settings) and extended self (possessions and
artifacts that help define who one is) (Walker, 1992).

Consumers purchase products that are consistent with the actual self or that are expected to help
achieve the ideal (Sirgy, 1980, 1982). Identity may also be reflected in both choice of housing style
and neighborhood (Hayward, 1975). For example, residents of Denver who considered themselves
‘‘city persons’’ were more likely to currently live and plan to live in the city (Feldman, 1990).

Possessions may take on characteristics far beyond their utilitarian features; therefore, people may
develop deep and complex attachments to them (Belk, 1988). A house can be a viewed as part of
the extended self, an object that helps to form identity and present that identity to the world
(Cooper, 1974; Hayward, 1977; Csikszentmihalyi and Rochberg-Halton, 1981; and Sadalla,
Vershure, and Burroughs, 1987). By their very nature, single-family homes usually perform many
highly emotional, individualized and personal roles in the lives of their occupants (Downs, 1989).
A house being purchased to serve as a ‘‘home’’ is being evaluated for not only physical, but also
social and psychological characteristics (Hayward, 1977). The house and household objects
frequently become an element in an individual’s personal identity as symbols of experiences and
relationships, providing a continuous sense of identity over time (Csikszentmihalyi and Rochberg-
Halton, 1981; Hummon, 1989; and Somerville, 1997). A woman’s self identity appears to be more
intimately linked to the home than a man’s in our society (Somerville, 1997).

Lifestyle. Lifestyle refers to the distinctive ways in which consumers live, how they spend their
time and money, and what they consider important—activities, interests and opinions. Lifestyles
evolve over time, so corresponding consumption patterns may change as well (Kelly, 1955; and
Reynolds and Darden, 1974). As lifestyles change, the value of various property attributes to
consumers will change. For example, the popularity of casual entertaining will reduce the value of
houses with square footage devoted to formal living rooms rather than family or great rooms
(Ahluwalia, 1996). The trend toward working at least part-time from home will increase the value
of home office space. Lifestyle may also affect tenure choice in that residents who like to be
mobile are more likely to rent (Boehm, 1981). Lifestyles vary within the population, creating
submarkets that place greater value on certain attributes that support their activities. These
differences offer yet another example of why the traditional appraisal method of dividing markets
into physical property types may not be sufficient to accurately identify the groups of properties
from among which a consumer is choosing. Builders will profit if they identify the lifestyle trends
and design property accordingly. Real estate sales agents will work more efficiently if they identify
and show only the houses appropriate to the potential buyer’s lifestyle. This section has described
internal consumer characteristics that influence consumer behavior as related to real estate
decisions. Internal characteristics reflect and are reflected in a variety of external determinants of
behavior. For example, cultural differences influence lifestyle patterns. The following section is an
examination of these external determinants of consumer behavior.

External Determinants of Consumer Behavior

Consumers do not live or make decisions in isolation. The values, beliefs and opinions of those
who surround the consumer affect decisions concerning real estate. Among the external influences
on consumers are culture, social class, reference groups and family.

Culture. Culture consists of a society’s beliefs, values, customs, shared meanings, rules, rituals,
norms, traditions and artifacts (Solomon, 1996). Values are shared, enduring beliefs about life and
appropriate behavior (Schiffman and Kanuk, 1997). Values express the broad goals that motivate
people and appropriate ways to attain these goals. The values that dominate a nation define its
national character. Some enduring American core values include achievement and success, activity,
efficiency and practicality, progress, material comfort, freedom and individualism (Arensberg
and Niehoff, 1980). The influence of these cultural values is evident in the American real estate
market. Ownership of a single-family detached house with yard represents independence and
success, especially among males (Rakoff, 1977; and Somerville, 1997). Even an elderly
homeowner in poor health may be reluctant to give up a single-family house because it may
publicly signify a movement to a less-valued status in our society (Steinfeld, 1982; and Hummon,
1989). Consumers want to express their individualism through custom homes (Mogelonsky, 1997).
Cultural norms that affect real estate demand include the standard in the United States that each
child in a family should have a private bedroom, but can share a bath. Cultural rituals such as
formal holiday dinners create demand for a formal dining room. While generally stable, values do
shift over time. For example, a growing number of Americans share a set of values based on
environmentalism, feminism, global awareness and spiritual searching. These consumers tend to
buy existing houses in established neighborhoods that they remodel to fit their preferences for
privacy, natural surroundings and eclectic interior decorating (Ray, 1997). Changing values create
a challenge for builders to provide products that will reflect consumers’ preferences in the coming
years. Within the broader society, subcultures exist. Subcultures are racial, ethnic, religious or
other groups whose members are distinguishable from the general population and who are held
together by a common culture (Assael, 1992). Major subcultures in the U.S. include Asian-
Americans, African-Americans and Hispanics, as well as religious sects. Builders wanting to
appeal to members of subcultures should understand how their differing beliefs affect their real
estate preferences. For example, some Asian- Americans are sensitive to location and shape of a lot
and structure as these affect a home’s chi, an invisible energy current that is believed to bring good
or bad luck. A home can bring good feng shui by rounding curves to bring gentle chi, which travels
on a curved path while stopping harmful chi that travels in a straight line (Fost, 1993). A home
without the proper design elements would have to be altered to be an acceptable real estate
alternative (Dumfries, 1995).

Social Class. Social stratification represents the hierarchical division of members of a society into
relative levels of prestige, status and power (Rossides, 1990). Nine variables have emerged from
the research as most important in determining social class: the economic variables of occupation,
income and wealth; the interaction variables of personal prestige, association and socialization; and
the political variables of power, class-consciousness and mobility (Gilbert and Kahl, 1982). At
least a threelevel stratification occurs in American society (Coleman, 1983). While upward and
downward mobility is possible, most Americans tend to remain in the stratum into which they were
born (Tyree and Hodge, 1978). Those in the same stratum socialize with each other and have
roughly similar lifestyles and consumption patterns. Most consumers say they would prefer to live
in the neighborhood they perceive has the most social status, but constraints force them to live
among people of their own social status whom they perceive to be friendlier (Hourihan, 1979).
Coleman (1983) found that status aspiration and class identification guide neighborhood choice,
then income controls the selection of a home. Housing acts as a symbol of class membership
(Rakoff, 1977; Hummon, 1989; and Somerville, 1997). Homeownership is perceived as upward
mobility in all classes (Hareven, 1991). Developers and builders should be aware of social class
structure and preferences in designing houses and neighborhoods to ensure that they will appeal to
the expectations and self-image of members of the targeted social class. Architectural designs must
reflect what members of the group would expect in their type of neighborhood (Nasar, 1989). For
example, a fireplace acts as an index of the social value of a dwelling and the social rank of its
occupants (Lawrence, 1989). Other signals include the types and arrangements of interior
decorations (Laumann and House, 1970; and Pratt, 1982) and landscape design (Duncan, 1973).
Some members of the upper class want ‘‘interesting’’ neighborhoods, leading to gentrified inner
city communities and ‘‘charming’’ places in the country (Coleman, 1983).

Reference Groups. Reference groups are individuals or collections of people that a consumer uses
as a point of comparison for attitudes, beliefs, values or behavior (Engel, Blackwell and Miniard,
1995). Consumers belong to some of the groups that influence their consumer behavior and either
aspire to join or try to avoid association with others. Some of these groups are formal groups, such
as the American Real Estate Society, and others are simply informal groups of friends. Subcultures,
social class and families can be influential reference groups as well. The level of influence a
particular reference group has on a consumer depends on cultural pressures, fear of deviance,
commitment to the group and group unanimity, size and expertise (Solomon, 1996). Reference
groups affect consumer choice in three principal ways: normative compliance, value-expressive
and informational influence (Engel, Blackwell and Miniard, 1995). Normative influence is
reference groups affecting behavior through pressure for conformity and compliance. This
influence is most likely when there is strong motivation for social acceptance (Bearden and Rose,
1990) and the product is publicly conspicuous in its purchase and use (Miniard and Cohen, 1983),
such as real estate. Value-expressive influence is the effect when a consumer needs psychological
association with a group and therefore conforms to its norms, values and behaviors. Consumers
hope to enhance their image in the eyes of others and identify with the group through their
purchases. As an informational influence, consumers often accept the opinions of others in the
group as providing credible evidence about products (Burnkrant and Cousineau, 1975). Research
consistently demonstrates that personal word-of-mouth influence has a more decisive role in
influencing behavior than advertising and other marketer-dominated sources (Herr, Kardes and
Kim, 1991) because of great perceived credibility. Research has shown that word-of-mouth
communication is an important source of information for real estate buyers (Hempel, 1969;
Johnson, Salt and Wood, 1974; and Burke, Belch, Lutz and Bettman, 1979). If real estate
developers, investment bankers and brokers can identify the most important reference groups
influencing real estate purchases, they can design and market their products in ways that assure
consumers that the real estate purchase will be accepted and approved of by these group members.
Testimonials by experts that express support for a builder or community will boost sales. So will
slice-of-life advertisements that describe current community residents as a group to which other
buyers would want to belong, such as successful businesspeople, wise investors or family-oriented
parents who are involved with their communities and schools.

Family. The family is often the most influential reference group (Schiffman and Kanuk, 1997). The
family teaches the consumer cultural values that have a substantial impact on shopping behavior.
The family continues to act as a point of reference even when the individual has formed a
household. In addition, the family unit, rather than the individual, purchases many products such as
housing. Family members may be involved in real estate decision-making as gatekeepers,
influencers, deciders, buyers and users (Engel, Blackwell and Miniard, 1995). Thus, all the family
members may be involved in a real estate decision in some fashion. In such situations, identifying
the proper family member to interview to obtain complete and accurate information regarding a
real estate decision can be difficult. The role structure of the husband and wife in consumer
decision-making varies with the type of product, stage in decision process and nature of the
situation. Changes in family structure have resulted in increasing joint husband and wife decisions,
including those about housing and financing (Cunningham and Green, 1974; Davis and Rigaux,
1974; Hempel, 1974; Munsinger, Weber and Hansen, 1975; Park, 1982; Hopper, 1995; and Mohan,
1995). However, within the overall real estate decision, one spouse may have more influence over
some aspects such as price or style. Thus, the real estate builder and broker must appeal to both
spouses while recognizing that each may be more interested and more influential on certain aspects
of the decision. This complication is reflected in Okoruwa and Jud’s (1995) findings that married
buyers tend to be less satisfied with brokerage services. Families change over time, passing through
a series of stages called the family life cycle (Wells and Gubar, 1966). The traditional family
pattern has been single, then married, married with children, empty nest, retirement and
widowhood. These stages in the family life cycle have closely paralleled the demand for housing
types: rental apartment, starter home, move-up single-family home, independent retirement
housing, and supportive apartment. Changes in household and family structure have resulted in
many people no longer following the traditional process, living with parents longer, delaying
marriage, having children out of marriage, divorcing and remarrying (Engel, Blackwell and
Miniard, 1995). This creates demand for a wider variety of housing options throughout the life
cycle. It also creates difficulty in estimating demand for housing types based on demographic
factors. For example, Timmermans and van Noortwijk (1995) found housing preference patterns
among divorcees to be different from other population groups.

A significant portion of the study of real estate deals with the consequences of consumer decisions
regarding real estate assets and services. Appraisal attempts to estimate the value of property to
consumers. Market analysis attempts to predict consumer demand for real estate services.
Investment analysis must determine the required rate of return to an investor. Finance analyzes
consumers’ mortgage choices and expected repayment pattern. Brokerage studies the transactions
between buyers and sellers. All of these elements of real estate study stand to benefit from a better
understanding of consumer behavior. The study of consumer behavior involves trying to
understand complex human beings and the reasons they act the way they do in the marketplace. It
recognizes that consumer decisions take place inside a person who has a distinctive personality and
attitudes, yet is similar to other consumers exposed to the same external influences of culture and
society. Rather than using simplifying assumptions to ignore these complexities, real estate
educators should embrace the study of consumer behavior to better understand the reasons behind
market choices. The relevance of consumer behavior to real estate studies is best accepted, perhaps,
in the areas of development, brokerage and leasing. These segments of the real estate discipline
have traditionally had the closest ties to the consumer. Still, real estate transactions are often
modeled as solely economic transactions. Within appraisal, the sales comparison approach
estimates the value of a property based on what consumers are willing to pay for individual
components of the property. The study of consumer behavior examines which people value what
components and why preferences change over time. Buyer attributes can be explicitly considered in
appraisal to determine properties considered as having the same utility and amenities (Ratcliff,
1965, 1972).

Attitudes, lifestyle and tastes affect consumer preferences for space. Market analysts should not
rely exclusively on census-based economic and demographic data from which they infer
information about consumers (Rabianski, 1995). Incorporating information about consumer
attitudes, preferences and perceptions into economic models of housing demand is critical to any
reduction of the large margin of unexplained variance in housing consumption behavior
(Megbolugbe, Marks and Schwartz, 1991).
 CHAPTER 4
RESEARCH
METHODOLOGY
 RESEARCHMETHODOLOGY

RESEARCHPROBLEM
 Real Estate Corporate facing financial crunch.
 Decreasing business of Real Estate Companies

RESEARCHDESIGN
Determined the Information Sources: I gathered data through secondary sources.

PRIMARYDATAiscollectedthroughquestionnaire,searchandresearchfromdevelopersandmarket
watchers.
SECONDARY DATAisbeingsearchsiteslikemagazines,newspapers,journals,websitesandthe
datahas been collected through otherapproaches.

DATACOLLECTION
Theresearchercollectedinformationthroughtheofficialwebsites,magazinesandjournals.

DEVELOPEDTHERESEARCHFRAME:
Thisincludeddecidinguponvarious aspectsfortheprojectonwhichtheentireresearchis based.The
research frameincluded:

NATUREOFSTUDY
Theprojectonwhichtheresearcherworkedisdescriptiveandinferentialinnature.

DATASOURCE:
The researcher took the help of both primary as well as secondary sources. Primary data
wasselected from Investloft. Secondary sources being interaction withvarious Real Estate people
of the selected and has been chosen for the research by the researcher.Secondary sources being
the internet as the medium and the official sites of the companies ofReal Estate sectorsand
corporate selling andfeedback onreal estate Companies.

INSTRUMENTUSED
The researcher for the research used a Questionnaire cum Schedule for market research for
boththe segments horizontal and vertical.The Questionnaire was prepared by the researcher
andSchedule wasprovidedbythe company inwhichthe researcher didits research report.

SAMPLESIZE
Samplesize fortheresearchisfixed. Itcountsto100.

SAMPLEAREA
Delhi

LIMITATIONS
 Therewasatime constraint,asstudycontinuesforalimitedperiod.
 Asinglepersonhasconductedthestudyandasaresultonlylimitednumbersofpeoplewerebeingc
ontacted.
 Thedataprovidedbytheinvestorsmaybebiased,whichmayaffectthepurposeofstudy.
 Somepeoplefounditunsafetodiscloseactualinformationabouttheirinvestments,whichaffecte
d study,astargeted population sometimes hasto beskipped.
 StudyislimitedtocustomersofInvestloft
 Thestudyisconductedforalimitedareai.e.Delhi;otherareasarenottakeninconsideration.
 CHAPTER 5
DATA ANALYSIS
 DATAANALYSIS

1) TableshowingpresenttypeofResidentialOwnership.

TYPE NO. OF RESPONDENTS % OF RESPONDENTS

Ownership 36 36%
On Rental 49 49%
Others 15 15%
Total 100 100%

RESIDENTIAL OWNERSHIP

15%
Ownership
36% On Rental
Other

49%
The above table shows that, maximum no. of respondents stays on rental basis i.e.49%, 36%

ofthe respondents have their ownership on residence and 15% of respondents are in

otherscategory,which include residenceonlease orstayingat relative.

 FACTORS NO. OF RESPOINDENTS % OF RESPONDENTS
Location 28 28%
Price 39 39%
Transportation Facility 16 16%
Accessibility to Market 07 7%
Others 10 10%
Total 100 100%

2) Table showing factors taken into consideration while purchasing residential properties.

FACTORS WHILE PURCHASING RESIDENTIAL PROPERTIES

10%
Location
7% 28% Price
Transportation Facility
Accessibility to Market
16% Others

39%

The above table shows that maximum no. of respondents i.e. 39% consider Price, whereas

28%consider location while 16% consider transportation facility whereas 10% consider other

factorslike Vastushastra, Water availability etc. and 07% of respondents consider accessibility to

marketasimportantfactorforpurchasing residentialproperties.

PARAMETERS NO. OF RESPONDENTS

 Brand Name 53
Quality 62
Space (Sq. Ft.) 49
Facilities 73
Interiors 30
Schemes 57

3) TableshowingParametersconsiderswhileselectingresidentialproperties.

PARAMETERS CONSIDERED WHILE SELECTING

RESIDENTIAL PROPERTIES

73

62
53
49

30

Brand Name Space (Sq. Ft.) Facilities Interiors Schemes

NO OF RESPONDENTS

The above table shows that maximum no. of respondents i.e. 73 consider Facilities as

parameterwhile62respondentsconsiderQuality,whereas57ofrespondentsconsiderSchemeswhereas53

respondents consider Brand name while 49 respondents consider Space (Sq. ft.) and

30respondentsconsider Interiorsasthe parameters while selecting residentialproperties.

4) TableshowingsourcesofInformationforrespondentswhilePropertyPurchasing
SOURCES NO. OF RESPONDENTS % OF RESPONDENTS
 Hoardings 13 13%
Newspapers 17 17%
Agents/ Consultants 33 33%
Relatives/ Friends 28 28%
Others 09 09%
Total 100 100%

VARIOUS SOURCES OF INFORMATION FOR PROPERTY

PURCHASING

Hoardings
9% 13% Newspapers
Agents/ Consultants
Relatives/ Friends
28% 17%
Others

33%

Above table shows that 33% of respondents get their information from Agents

/Consultants,where as 28% of respondents get information from Relatives/ Friends while 17% of

respondentsget information from Newspapers whereas 13% of respondents get information from

Hoardingsand09%ofrespondentsgettheirinformationthroughOtherSourceslikeLocalNewsChannel

,Radio,Internetetc. for Purchasing ResidentialProperties.

 AwarenessNo.ofRespondents%ofRespondents
Yes6767%

No 33 33%
Total 100 100%

5) TableshowingawarenessinrespondentsaboutvariousschemesofferedbyInvestloft.

The above table shows that maximum no. of respondents i.e. 67% were aware about the

variousschemes offered by INVESTLOFT whereas 33% of respondents were not aware about

variousschemesoffered byINVESTLOFT.

6) Tableshowingdurationoftheyearwhennormallyrespondentsliketopurchasesreside

ntial properties.

MonthNo.ofRespondents% of RespondentsJantoApr3535%
MaytoAug1313%

SepttoDec 52 52%
Total 100 100%
Above table shows that maximum no. of respondents i.e. 52% would prefer Sept to Dec as

theduration where as 35% respondents would prefer Jan to Apr while 13% of respondents

preferMaytoAugasthedurationoftheyearwheretheywouldliketopurchaseresidentialproperties.

7) TableshowingtypeofResidentialpropertyrespondentswouldlikePurchase.

Type
No.ofRespondents %ofRespondents
1 BHKFlat
18 18%
2 BHKFlat
48 48%
3 BHK
24 24%
FlatBungalow/Row
04 04%
houseOthers
06 06%
Total
100 100 %
Above table shows that maximum no. of respondents that is 48% would like to purchase 2

BHKFlat, whereas 24% respondents prefer 3 BHK Flat, while 18% respondents prefer 1BHK

Flatwhereas 4% of respondents prefer Bungalow/Row house and 06% respondents prefer

otherswhichincludeDuplex,TerraceFlat,AttachedFlatetc.forpurchasesofresidential property.

8) Tableshowingmodeofpurchasesofresidentialpropertypreferredbyrespondents.

ModeHo
No.ofRespondents %ofRespondents
meLoans
57 57%
Lum- 06 06%

sumInstallm 33 33%

entsOthersT 04 04%

otal 100 100%

Above table shows that maximum no. of respondents i.e.57% would prefer Home Loans

whereas33% of respondents would prefer Installments while 06% of respondents would prefer

Lum-sumand 04% of respondentsprefer Others.

FINDINGS

1) Duringthetimeofsurvey,itwasfoundthat49%respondents arehavingtheresidentonrental,

36% respondents are having own property & 15% respondents are having

othersourcessuch as lease,relatives&friends etc.

2) It was found that the price & location is major factor which consider by the customer at

thetime

ofpurchasingtheresidentialproperty.Here39%respondentsareconsideringtheprice,28%

respondents are consider location & 16% & 7% respondents are

consideringtransportation&marketfacility.

3) It was found that the ‘quality’ & ‘facilities’ are most considerable parameters at the time

ofselectingresidentialproperty.BrandName&schemesarealsoconsidertheconsumeratthetimeof

purchasing the residentialproperty.

4) Itwasfoundthatthesourceofinformationforconsumerstherealestateconsultantplayvery

vital role. 33% respondents go through the consultants, 28% respondents preferrelatives

& friends, 17% go through newspapers & 22% respondents prefer throughhoarding

&otherssources.

5) Itwasfound67%respondentswereawareofvariousschemes offeredbyINVESTLOFT&33%

respondents were not aware.Here the most of the respondent’s opinions aboutschemesof

INVESTLOFT’saregood.

6) InthedurationofSeptembertoDecemberthemostoftherespondentswereliketopurchasethe

residential property becausemost of the festival are in this duration.Here 52%respondents

preferred in September to December, 35% respondents preferred in January toApril &13%

respondents preferred in May&August.

7) Itwasfoundthatdemandofthe2&3BHKflats weremoreascomparingtoothertypes.

48% respondents prefer 2 BHK flat, 24% respondents prefer 3 BHK & 18% &

4%respondentschoosethe1BHK&Bungalowrespectively.Here6%respondentsgothroughthe

othertypesuchas Duplexflat, GalleryorTerries&1HK flat.

8) In the mode of payments 57% respondents go through home loans of various banks

&private financial institutes, 33% respondents go through installments, 6%

respondentsthrough lumsumamount & 4%respondents chooseother mode

ofpayments.

9) ItwasfoundthattheclosecompetitionofINVESTLOFTwereVascon,BramhaBuilders&Nyati

Builders which weremostlyknownbythe respondents.

CONCLUSION

A significantportionofthestudyofrealestatedealswiththeconsequencesofconsumerdecisions

regarding real estate assets and services. Appraisal attempts to estimate the value ofproperty to

consumers. Market analysis attempts to predict consumer demand for real estateservices.

Investment analysis examines the required and expected rate of return to an

investor,andfinanceanalyzesconsumers’mortgagechoicesand likelihoodof repayment.

The study of consumer behavior involves trying to understand complex human beings and

thereasons they act the way they do in the marketplace. It recognizes that consumer decisions

takeplace inside a person who is distinctive in his personality and attitudes, yet similar to

otherconsumers whohavebeenexposedtothesameexternalinfluences ofculture andsociety.

Rather than ignoring these complexities, real estate researchers should embrace the study

ofconsumerbehavior tobetterunderstand thereasons behind marketchoices.

Within appraisal, the sales comparison approach estimates the value of a property based on

whatconsumers are willing to pay for individual components of the property. The study of

consumerbehavior examines why people value those components, which people value those

components,and why preferences change over time. A review of the consumer behavior literature

wouldsuggest that buyer/seller attributes be explicitly considered in appraisal to determine

marketcharacteristics and the properties considered to have the same utility and amenities

(Ratcliff,1965;1972).

Attitudes, lifestyle, and tastes affect consumer preferences for space. Market analysts should

notrelyexclusivelyoncensus-

basedeconomicanddemographicdatafromwhichtheyinferinformationaboutconsumers(Rabianski,1

995).Megbolugbe,Marks,andSchwartz(1991)contendthattheincorporationofinformationaboutcons

umerattitudes,preferences,and
perceptions into economic models of housing demand is critical to any reduction of the

largemargin ofunexplainedvariancein housingconsumptionbehavior.

The importance of the individual in the study of investments is reflected in the discussion

ofinvestmentvalue.Thevalueofaparticularpropertytoanindividualinvestorreflectstheinvestor’s

unique situation with respect to such factors as taxes, investment objectives,

financingopportunities, and the need for liquidity (Corgel, Smith, and Ling, 1997; Lusht, 1997).

Eachpersonmayvary as tolevelof risk aversionaswell.

The incorporation of consumer behavior concepts into traditional real estate study in these

andother areas will improve understanding of individual decision-making in a real estate

context.Thisunderstandingwillleadtobetterexplanationsandpredictionsinrealestatemarketsand,asa

result,greatersuccess inthemarketplace.