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Marketing Strategies adopted by Real Estate developers in Ahmedabad and

Mumbai, India
Thesis · May 2018

DOI: 10.13140/RG.2.2.26102.24649
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Comparison of marketing strategies adopted by real estate developers.
COMPARISON OF
MARKETING
STRATEGIES ADOPTED
BY REAL ESTATE
DEVELOPERS.
FINAL REPORT - DRAFT
Manan Mehta | UC 2213

Guided By: Mr. Anish Shah
UNDER GRADUATE PROGRAMME IN FACULTY OF TECHNOLOGY
STUDENT NAME : Manan Mehta
Thesis Title : Comparison of marketing strategies adopted by real estate developers.
APPROVAL
The above titled study by the student is approved as a creditable work on the
approved subject carried out and presented in a manner, sufficiently satisfactory to
warrant its acceptance as a pre-requisite for the degree of Bachelor of Construction
Technology for which it has been submitted.
It is to be understood that by this approval, the undersigned do not endorse or approve the
statements made, opinions expressed or conclusion drawn therein but approves the study
only for the purpose for which it has been submitted by him/her and satisfies the
requirements laid down in the academic programme.
Signature of the Guide Dean, Faculty of Technology
UC 2213 | Manan Mehta i

ACKNOWLEDGEMENT
I would like to express the deepest regards to my guide Mr Anish Shah for showing great patience in
guiding me throughout the research. I am indebted to his vast bank of knowledge and his passion for
the subject.
I am also thankful to Mr. Nirav Kothary for sharing his insights about the subject. His extensive work
experience in this industry helped me to fathom newer perspectives and approach to the research.
My sincere gratitude to all the developers and respondents who took time out of their busy schedules
and contributed to my thesis.
Also, I extend my regards to Ms. Disha Shah, Mr. Abhijeet Khachar, Mr. Siddharth Maroo, and Mr.
Het Trivedi for their constant support and assistance throughout the research.
And lastly, sincere thanks to my parents and the almighty for being my pillars of strength.
UC 2213 | Manan Mehta ii

ABSTRACT
In a generation led by millennials, technologies are becoming redundant each year. The organisations
are competing on a global scale and newer and innovative strategies are introduced in the field of
marketing to reach out to the potential buyers. Real Estate, being one of the biggest business sectors,
needs more efficiently targeted marketing campaigns as this is a very niche and unexplored field in
the Indian scenario.
Real Estate projects are highly priced products which cannot be sold efficiently without a well
strategized marketing campaign so as to reach out to the exact targeted market.
Through this study, efforts have been made to pin point the existing supply-demand problems in the
cities of Ahmedabad and Mumbai in the affordable and HIG housing sector specifically. Also,
suitable solutions for marketing campaigns have been proposed considering the current market
realities for both cities.
Keywords: Real estate marketing, marketing strategies, Ahmedabad real estate market, Mumbai real
estate market, real estate unsold inventories, developer branding.
UC 2213 | Manan Mehta iii

Contents
ACKNOWLEDGEMENT ................................................................................................................... ii
ABSTRACT ....................................................................................................................................... iii
ABBREVIATIONS ........................................................................................................................... vii
1. INTRODUCTION ....................................................................................................................... 1
1.1 OBJECTIVES............................................................................................................................ 1
1.2 NEED FOR THE STUDY......................................................................................................... 1
1.3 SCOPE OF THE STUDY ......................................................................................................... 2
1.4 RESEARCH DESIGN............................................................................................................... 2
1.4.1 Primary Data ....................................................................................................................... 2
1.4.2 Secondary Data ................................................................................................................... 2
2. LITERATURE ............................................................................................................................ 3
2.1 Real Estate ................................................................................................................................. 3
2.2 Real Estate Market of India ....................................................................................................... 3
2.3 Marketing – Real Estate’s Perspective ...................................................................................... 4
2.3.1 The Real Estate Market System ......................................................................................... 5
2.3.2 What is a Marketing Strategy? ........................................................................................... 5
2.4 The Need ................................................................................................................................... 6
2.4.1 Case 1: Ahmedabad ............................................................................................................ 6
2.4.2 Case 2: Mumbai .................................................................................................................. 7
2.4.3 Establishing the target market ............................................................................................ 9
2.4.4 Customers v/s Influencers ................................................................................................ 10
2.5 The Supply............................................................................................................................... 11
3. DATA COLLECTION AND ANALYSIS ................................................................................... 12
3.1 Methodology of Data Collection ............................................................................................. 12
3.2 Case Studies............................................................................................................................. 13
3.3 Questionnaire Responses ......................................................................................................... 13
3.3.1 Affordable Housing Sector (Developer Interview Responses) ........................................ 13
3.3.2 Affordable Housing Survey (Consumer Affordability) ................................................... 15
3.3.3 HIG/HNI Housing Sector (Developer Interview Responses) .......................................... 16
3.3.4 HIG/HNI Housing Sector (Consumer Perception Survey) .............................................. 18
3.4 Methodology of Analysis ........................................................................................................ 21
3.5 Analysis ................................................................................................................................... 22
UC 2213 | Manan Mehta iv

3.5.1 Calculation of Sample Size............................................................................................... 22

3.5.2 Affordable Housing Sector – Analysis ............................................................................. 23
3.5.3 HIG/HNI Housing Sector – Analysis ............................................................................... 25
3.5.4 Unsold Inventories: Findings ........................................................................................... 28
3.6 Government Inputs .................................................................................................................. 29
4. CONCLUSION/INFERENCES .................................................................................................... 30
4.1 Proposition of Marketing Campaign ....................................................................................... 30
4.2 Conclusion ............................................................................................................................... 32
REFERENCES .................................................................................................................................. 33
ANNEXURE ..................................................................................................................................... 34
Questionnaire 1: CONSUMER SURVEY .................................................................................... 34
Questionnaire 2: DEVELOPER INTERVIEW ............................................................................. 35
List of Figures
Figure 1 Research Design Process ...................................................................................................... 2

Figure 2 Real Estate market growth in India ....................................................................................... 4
Figure 3 Unsold Inventories in major Indian cities ............................................................................. 4
Figure 4 The Real Estate System, by Warszawski, 1996 .................................................................... 5
Figure 5 Marketing Strategy Schematic .............................................................................................. 5
Figure 6 Population growth of Ahmedabad ........................................................................................ 6
Figure 7 Monthly Household Income distribution in Ahmedabad ...................................................... 7
Figure 8 Population Growth of Mumbai (ext.) .................................................................................... 8
Figure 9 Monthly Household Income distribution in Mumbai ........................................................... 8
Figure 10 Target Market ...................................................................................................................... 9
Figure 11 Sector-wise Supply-Demand............................................................................................. 10
Figure 12 Population pyramid ........................................................................................................... 10
Figure 13 Real Estate price trends ..................................................................................................... 11
Figure 14 Methodology of Data Collection ....................................................................................... 12
Figure 15 Sector Wise data type ........................................................................................................ 12
Figure 16 Consumer Affordability - Ahmedabad.............................................................................. 15
Figure 17 Consumer Affordability - Mumbai ................................................................................... 15
Figure 18 Methodology for Analysis................................................................................................. 21
Figure 19 Case study site locations - Ahmedabad ............................................................................. 26
Figure 20 Feasible locations for upcoming projects .......................................................................... 26
Figure 21 Case study site locations - Mumbai .................................................................................. 27
Figure 22 Pile-up inventories - Findings ........................................................................................... 28
Figure 23 Mumbai city growth trend ................................................................................................. 29
Figure 24 Ahmedabad city growth trend ........................................................................................... 29
Figure 25 Marketing funnel ............................................................................................................... 30
UC 2213 | Manan Mehta v

List of Tables
Table 1 Ahmedabad population demographics ................................................................................... 6

Table 2 Population growth in Ahmedabad .......................................................................................... 6
Table 3 Population growth in Mumbai ................................................................................................ 7
Table 4 Mumbai population demographics ......................................................................................... 8
Table 5 Ideal cost of affordable homes - Mumbai .............................................................................. 9
Table 6 Affordable Housing Sector (Developer Interview Responses) ............................................ 14
Table 7 HIG/HNI Housing Sector (Developer Interview Responses) .............................................. 17
Table 8 Area wise selling rate in affordable housing sector- Ahmedabad ........................................ 23
Table 9 Area wise selling rate in affordable housing sector - Mumbai............................................. 24
Table 10 Area wise selling rate in HIG housing sector - Ahmedabad .............................................. 26
Table 11 Area wise selling rate in HIG housing sector - Mumbai ................................................... 27
UC 2213 | Manan Mehta vi

ABBREVIATIONS
GDP: GROSS DOMESTIC PRODUCT

RERA: REAL ESTATE REGULATORY AUTHORITY
HIG: HIGH INCOME GROUP
HNI: HIGH NET WORTH INDIVIDUAL
LIG: LOW INCOME GROUP
MIG: MIDDLE INCOME GROUP
EWS: ECONOMICALLY WEAKER SECTIONS
FDI: FOREIGN DIRECT INVESTMENTS
MMR: MUMBAI METROPOLITAN REGION
MBT: MUMBAI BEYOND THANE
ABL: ABOVE POVERTY LINE
ROI: RETURN ON INVESTMENT
BPL: BELOW POVERTY LINE
GST: GOODS AND SERVICES TAX
VR: VIRTUAL REALTIY
MHUPA: MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION
PI RATIO: PRICE INCOME RATIO
UC 2213 | Manan Mehta vii

1. INTRODUCTION
India is the world’s sixth largest economy by nominal GDP, of which 53.77% is contributed by the
service sector alone. The biggest chunk of the service sector stays occupied by the real estate industry
including housing, retail, hospitality and commercial. The housing sector alone contributes to 5-6%
of the GDP while real estate sector cumulatively contributes to roughly 9%.
Initiatives and policies like ‘Housing for all by 2022’, ‘100 Smart cities project’, ‘Sardar Patel urban
housing mission’, demonetization, RERA, etc. have significantly influenced the growth of this sector
– both positively and negatively. However, the buying tendencies shown by the consumers did not
go hand in hand with the stipulated growth of the sector. Most of the developers are introducing new
projects whilst sitting on pile of unsold inventories.
Thus, marketing and sales have a significant effect on the real estate industry indirectly and the
strategies adopted by the developers would play a major role in determining the country’s macro-
economic health.
1.1 OBJECTIVES
✓ Understanding the existing and stipulated market trends in real estate of Ahmedabad and
Mumbai.
✓ Analysing the various demographics and understanding their effects on the real estate market
of the city.
✓ Analysing, comparing and critiquing the current marketing strategies adopted in both cities.
✓ Comparing the strategies adopted in affordable housing sector and high-end/HIG housing in
both cities.
✓ Lastly, proposing a marketing strategy in the mentioned sectors considering the current
realities.
1.2 NEED FOR THE STUDY
✓ The unsold inventories in various metro cities range from 15-60%.

✓ The stipulated growth trends do not go hand in hand with the on-ground realities of the
piled-up inventories.
✓ The marketing strategies have not evolved with the digitization boom, and still the real
estate marketing techniques are conventional and financially heavy.
✓ Hence there is a need to establish the gap between the need of the consumers and the supply
from the real estate developers, and overcome it using efficient marketing strategies.
✓ Also, understand how and till what extent will the digital marketing affect the lead
generation and sales of real estate projects.
UC 2213 | Manan Mehta 1

1.3 SCOPE OF THE STUDY
✓ The scope of the work will be limited to cities of Ahmedabad & Mumbai.
✓ Case studies will be studied and compared for two different sectors viz, High end residential
building projects, and affordable housing sector.
✓ The scope will be limited to planning marketing strategies and its implementation.
1.4 RESEARCH DESIGN
Defining Collecting Preparing

Selection of Literature
research secondary Questionnaire Pilot survey
topic review
question data draft
Proposing Final
Final report Draft report Data analysing Data collection
strategy questionnaire
Figure 1Research Design Process
1.4.1 Primary Data

There are two sets of research questionnaire:
Questionnaire 1 – A questionnaire designed to understand the needs of consumers and the factors
affecting their behaviour as consumers.
Questionnaire 2 – An interview questionnaire to understand the existing marketing techniques used
by developers and analyse their investments and planning in marketing/advertising.
1.4.2 Secondary Data
✓ Reports on Indian real estate by market research JLL, Knight Frank, CBRE, etc.
✓ Census data from government websites.
✓ Other related websites for theories.
✓ Previous thesis works from CEPT University library.

2. LITERATURE
2.1 Real Estate
Real estate is property comprised of land and the buildings on it, as well as the natural resources of
the land, including uncultivated flora and fauna, farmed crops and livestock, water and mineral
deposits.
Real Estate can be broadly categories into the following types:
Residential Real Estate
Commercial Real Estate
Industrial Real Estate
Land
Considering the topic under study, the residential real estate is broadly categories as:
✓ Bungalows: They are independent houses that can either be stand-alone (private built and
owned) or a group of independent houses build by developers, forming a society. The
bungalows are either single or multi floored (generally up to 2 floors).
✓ Row Houses: Row houses are series of houses which has similar plans and located side by
side to adjacent houses and shares a common wall. They are different from villas as they are
joined by common walls. The design pattern, architecture, and appearance are similar.
✓ Low rise residential building: These are residential units that consist of around four to five
floors with a common area and other amenities for the residents. It has multiple residential
units in each floor with all the facilities required for living.
✓ High rise residential building: These are residential units that have similar facilities and
planning like that of low-rise buildings, however consist of ten or more floors.
✓ Townships: They have facilities and infrastructure like a town where all civic amenities such
as roads, water, electricity, school, healthcare units, garbage disposals, parks, recreational
centre, etc. are provided within a gated community. These are residential complexes
constructed either by the government or by private realtors and usually situated within
suburbs.
2.2 Real Estate Market of India
Real Estate industry is one of the most prominent service sector industry in India. Along with
accredited as being fast growing, it is also the 4th largest sector in terms of Foreign Direct
Investment (FDI) inflows. The FDI sector stood at US$ 24.66 billion from April 2000 to September
2017.

India has witnessed rapid urbanisation in the last decade, as a result of which, it is projected that about
600 million people will be living in urban areas by 2031. By 2028, India’s real estate market size is
expected to increase by 7 times. The Indian real estate market is expected to touch US$ 180 billion
by 2020. The housing sector alone contributes 5-6 per cent to the country’s Gross Domestic Product
(GDP). In India, real estate is the second largest employer after agriculture and is slated to grow at
30 per cent over the next decade. Also, India’s rank in the Global House Price Index has jumped 13*
spots to reach the ninth position among 55 international markets, on the back of increasing prices in
mainstream residential sector. Also, the real estate is a $150 Bn industry, which has a significant
effect on the nation’s GDP. Marketing and sales have a significant effect on the real estate industry
and the strategies adopted by the developers play a vital role in deciding the country’s economic
health.
Figure 2 Real Estate market growth in India
The unsold inventory in various metro cities range anywhere between 15-60%. The current realities
don’t go hand in hand with the stipulated growth of the industry, hence marketing the product would
play a very significant role in the near future. Also, marketing has been a niche and unexplored field
when it comes to real estate. This calls for a need to dwell deeper into the marketing aspects of the
industry.
Figure 3 Unsold Inventories in major Indian cities
2.3 Marketing – Real Estate’s Perspective
Marketing, as defined by the American Marketing Association, is “the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large”. In simpler words, it is anything and everything
that introduces a product in a market.

In general, the marketing process includes correlation of 4 basic elements, also known as the 4 P’s of
marketing:
I. Identification, selection, and development of a PRODUCT.
II. Determination of its PRICE.
III. Selection of a distribution channel to reach the customer’s PLACE, &
IV. Development and implementation of a PROMOTIONAL STRATEGY.
2.3.1 The Real Estate Market System
Parameters
THE GENERAL ECONOMY
Objectives,
Criteria REAL ESTATE MARKET
Constraint
s THE COMPANY
Decision
Variables
Figure 4 The Real Estate System, by Warszawski, 1996
The above figure explains the real estate system very aptly. The general economy of the country
defines its real estate market realities. The economic parameters coupled with the real estate market
lay the foundation for the objectives and project criteria of the developer. The economic factors along
with the market serve as constraints, which further define the decisions made by the company. The
approach to marketing starts with quantifying and understanding the need of consumers considering
the constraints and economic parameters.
2.3.2 What is a Marketing Strategy?
It’s often said in the world of marketing that to sell a product, one must cater to a need or create one.
However, this does not stand true for real estate product. Here, the need defines the supply and not
vice versa and hence it is very important to study the micro and macro factors affecting the needs of
the consumers and catering to the on-going trend instead of developing residential units that are not
demanded by the consumers. Failing to do this leads to increasing levels of unsold inventories which
are a threat to most of the developers in metropolitan cities as of today.
NEED SUPPLY
CUSTOMER MARKETING STRATEGY DEVELOPER
Figure 5 Marketing Strategy Schematic

2.4 The Need
2.4.1 Case 1: Ahmedabad
General demographics
The census done in 1871 showed a population of 116,900. By 1911 there were over a quarter of a
million people and over a half million by the 1941 census. The city passed the 1 million resident mark
by the 1961 census with over 1.1 million residents. The city has grown by about one and a half million
people by the last census in 2011. A nearby military base and government institutions bring people
from all over India to Ahmedabad and fuel city growth. By 2021, there could be nearly 9 million
people residing in Ahmedabad.
Total no. of House Holds: 11,79,823
Total Population: 55,77,940
Total Male Population: 29,38,985
Total Female Population: 26,38,955
Total Population between 0 to 6 years: 6,21,034
Table 1 Ahmedabad population demographics
Year Population (Approx. figures)

1871 116900
1911 260000
1941 505000
1961 1100200
2011 1136000
2021*E 9000000
Table 2 Population growth in Ahmedabad
10000000
8000000
6000000
4000000
2000000
0
1871 1911 1941 1961 2011 2021*E
Population in Numebrs Expon. (Population in Numebrs)
Figure 6 Population growth of Ahmedabad
The growing urbanization and development in Ahmedabad has attracted thousands of migrants to this
business city every year. This has created a huge demand in real estate over the years.
However, the declining poverty rates have not been able to keep up with the inflation rates, because
of which more and more ABL (above poverty line) people have been pulled in BPL (below poverty
line) category. Because of such complex economic realities, simple income averages cant be used to

determine the affordability of people for real estate. Given below are some interesting charts showing
the income distribution over span of 2 time periods, viz, 2001 and 2011 respectively.
Figure 7 Monthly Household Income distribution in Ahmedabad
The population living in slums/challis is shown as yellow bars while the population living outside
slums is shown as blue bars. Predictably, the slum population is mostly clustered at the left part of
the graph for the 2 years measured. However, we can see an overlap between the income of the more
affluent households living in slums and the income of the less affluent living in formal housing. Also,
it is clear from the population trends that the population will increase exponentially. Hence the spread
of the overlap shown if the second graph is bound to increase over the time. Hence, this will represent
dual consumer behavior for the same set of income groups.
2.4.2 Case 2: Mumbai
Mumbai is the capital city of the Indian state of Maharashtra. It is the most populous city in
India with an estimated city proper population of 12.4 million as of 2011. Along with the
neighbouring regions of the Mumbai Metropolitan Region, it is second most populous metropolitan
area in India, with a population of 21.3 million as of 2016. Mumbai is the financial, commercial and
entertainment capital of India. It is also one of the world's top ten centres of commerce in terms of
global financial flow, generating 6.16% of India's GDP and accounting for 25% of industrial output,
70% of maritime trade in, and 70% of capital transactions to India's economy. For the research
purpose, the Mumbai area under consideration is MMR (Mumbai Metropolitan Region) which
includes Mumbai district, suburban district, Thane, Navi Mumbai, Palghar, Raighar, and other towns
and municipalities.
Table 3 Population growth in Mumbai
Year Population (Approx. figures)
1871 644,605
1911 1,018,388
1941 1,686,127
1961 4,152,056
2011 18,410,000
2021*E 28,600,000

Table 4 Mumbai population demographics
Total no. of House Holds: 20,94,171
Total Population: 2,13,00,000
4,00,00,000
3,00,00,000
2,00,00,000
1,00,00,000
0
Population in Numbers
Expon. (Population in Numbers)
Figure 8 Population Growth of Mumbai (ext.)
Mumbai, in all aspects of business and migration has surpassed any other city of India. Hence, the
reality here is very much similar to that of Ahmedabad, but the only difference being that the
magnitude of the spread is large because of the multi-fold increment in the population as compared
to that of Ahmedabad.
Given below is the income distribution of Mumbai.
Figure 9 Monthly Household Income distribution in Mumbai

Table 5 Ideal cost of affordable homes - Mumbai
This statistic represents the distribution of annual household income across the city of Mumbai in
India in 2015. Eight percent of Mumbai households had an annual income of less than 75,000 rupees
during the measured time period. As per the statistics, nearly 30% falls under LIG category and about
27% earn more than 10 lac rupees a year.
2.4.3 Establishing the target market
A target market is defined as a group of consumers at which a product or service is aimed.

Target Marketing involves breaking a market into segments and then concentrating your marketing
efforts on one or a few key segments consisting of the customers whose needs and desires most
closely match your product or service offerings.
The market segmentation can be done in the following ways:
• Demographic Segmentation: Gender, age, income, education, race, etc.
• Geographic Segmentation: Area, city, province, country, etc.
• Psychographic Segmentation: Socio-economic classes.
Here, we will establish our target market in terms of income group, using the data and charts from
section 2.4.1 and section 2.4.2.
Figure 10 Target Market
The marked areas in the charts define our target market. The population increase, coupled with
increase in real poverty will increase the spread of the area in the first chart. This will create a bigger
market over the next 5-7 years.

Figure 11 Sector-wise Supply-Demand
It can be clearly seen that the demand in HIG and MIG segment is 52% of the total demand for
housing in the market while supply is 98% thus adding to the inventory level. The total demand for
LIG housing is 48% of the total demand across segments, but new inventory added in this segment
constitutes only 2% of the total new inventory added. Therefore, despite shortage and large pent up
demand in LIG segment, the inventory levels may would remain stagnant and increase as more LIG
houses are added to meet the demand in the segment.
2.4.4 Customers v/s Influencers
In simple words, customers are defined as those people who actually buy the product. On the other
hand, influencers are those who do not themselves buy the product however, influence the decision
making of the customers and play an indirect role in the whole process. Given below are the
population pyramids for both- Ahmedabad and Mumbai.
Figure 12 Population pyramid
The customers of real estate products, i.e., residential units are always the earning members of the
family. This makes them the customers. Now, the average age of a person buying a house falls in the
range of 35-60 years.
However, the influencers are the younger members of the family (indirectly). Hence, it is much more
important to attract the needs of this age group and target them specifically in order to generate more

leads and sales. As per the data, majority of the chunk is formed by the younger age groups, which
creates the need to place and promote the product on channels where this group can be targeted.
2.5 The Supply
From the demand-supply chart in section 2.4.3, we can see that most of the supply has been significant
to the MIG (middle income group) and the HIG (high income group). This has led to the piling up of
the inventories in the various metropolitan cities. The unsold inventories go up to 60%, in some major
cities.
Currently, Ahmedabad has a pile up inventory of 28000 units, where as Mumbai has 151,633 unsold
units.
Figure 13 Real Estate price trends
The developers have been launching mainly attracted to the HIG and Ultra luxurious sector owing to
the profit margins and ROI, however, the demand really lies at the bottom of the pyramid.
As we can see from the above graphs, that the market has been stagnant, and no major price difference
can be observed since the last 4 years.

3. DATA COLLECTION AND ANALYSIS
3.1 Methodology of Data Collection
In order to understand the process in a chronological order, the methodology is adopted by studying
the need first, and then dwelling into the supply for each of the markets under the scope of research.
The following schematic diagram represents the methodology of the data collection.
NEED SUPPLY
CUSTOMER DEVELOPER
DATA SET 1 DATA SET 2
Figure 14 Methodology of Data Collection
There are two data sets collected for each of the sectors under the scope. The type of data collected
are as follows:
- Primary Data
- Secondary Data
The data type for each sector is further divided as:
Affordable Housing HIG/Luxurious Housing
SUPPLY DEMAND SUPPLY DEMAND

(Developer) (Customer) (Developer) (Customer)
Primary Data Secondary Data Primary Data Primary Data
Figure 15 Sector Wise data type

3.2 Case Studies
The scope of the research includes two cities: Ahmedabad and Mumbai under which affordable
housing and HIG/HNI housing sector are studied.
Following were the attributes for selection of case studies:
• Experience in the sector
• Brand establishment in the city
• Having on-going projects
3.3 Questionnaire Responses
3.3.1 Affordable Housing Sector (Developer Interview Responses)

General Questionnaire Respondent
Sr. No.
Questions R1 R2 R3 R4 R5 R6
Residential, Residential, Residential, Residential, Residential, Residential,
1 Type of real estate?
Commercial Commercial Commercial Commercial Commercial Commercial
2 Type of projects LIG,MIG,HIG LIG,MIG,HIG LIG,MIG,HIG LIG,MIG,HIG LIG,MIG,HIG LIG,MIG
3 Years since inception 1995 1996 1990 1980 2003 2006
Chandigarh,
Gurgaon,
Ahmedabad,
Kolkata, Nagpur,
Ahmedabad, Mumbai, Pune,
Mumbai, Pune,
4 Cities of operation Anand, Surat, Ahmedabad Hyderabad, Mumbai Mumbai
Hyderabad,
Mumbai London
Mangalore,
Bengaluru,
Chennai and
Kochi.
5 Projects completed in Ahm/Mumbai 17 10 1 100+ 20+ 2
6 Ongoing projects 1 6 1 20+ 6 1
7 Current unsold inventory 10% 15% N.A. 30% 10-20% 0%
Views on last decade of real estate trends in
8 Stagnant Positive Positive Positive Stagnant Positive
Ahm/Mumbai
9 Views on upcoming decade Very Positive Very Positive Very Positive Very Positive Very Positive Very Positive
Which policies majorly affected sales in last RERA, Housing Demonitization,
10 Demonitization Demonitization N.A. Housing for all
decade? for all gst.
11 Which incentives have majorly affected sales? - - - - - Housing for all
Do you have separate teams/experts for
12 Yes Yes Yes Yes Yes Yes
marketing and sales?
How do you allocate marketing budget for the
13 Yearly Yearly Yearly Yearly Yearly Yearly
company?
PRODUCT related questions

R1 R2 R3 R4 R5 R6
On what prominent motive you do you decide Availablitly of Availablitly of Booming Booming
1 Booming location Availablitly of land
on having a project? land land location location
Majorly
How do you go about the market research for outsourced, but
2 In house Outsourced Outsourced Outsourced Outsourced
the product? Is it in-house or outsourced? also in-house
team.
Analysing the Analysing the
Analysing the land
3 How is the location for the project selected? land parcels land parcels By BOD Consultants By BOD
parcels available.
available. available.
Depending on Depending on Depends on the
On what basis do you decide the extent of As per trends Depending on As per trends
4 target target sector and budget
amenities to be given? in the market target audience in the market
audience audience of project.
No
5 Do you filter customers? If yes, then how? No No Yes Yes No
Do you account for unsold inventory while
6 No Yes No Yes No No
feasibility performing feasibility study?

PRICING related questions
Done by finance Total cost +

1 How do you price your project? L+C+Margin L+C+Margin - L+C+Margin
team. margin
Do you have a dedicated team/personnel for
2 BOD, Finance Finance Finance FTF FTF BOD, Finance
pricing? If yes, then who?
How much is average projected margin on a
3 15-20% 25% 20% 15-20% 10-15% 10%
single unit?
How much is the cash component in the current
4 30% - - 30-40% - 20%
market?
Has the price of a single unit affected due to
5 - 5% No change - No change No change
GST? If yes, then how much?
PLACE/CHANNEL related questions
Brokers
Brokers Brokers
Newspaper Ads Brokers
Newspaper Ads Newspaper Ads
TV commercials Newspaper Ads
Brokers Newspaper Radio Ads TV commercials
Radio Ads Radio Ads Brokers
Ads Radio Ads Sponsoring Radio Ads
Sponsoring Sponsoring Newspaper
Sponsoring events events Digital Sponsoring
events Digital events Digital Ads Radio
1 Which channels do you use for promotions? Other print media marketing Other events Digital
marketing Other marketing Other Ads Other
Trade events and print media marketing Other
print media print media print media
shows Others Trade events print media
Trade events Trade events and
and shows Trade events and
and shows shows Others
Others shows Others
Others
2 How do you obtain majority of leads Walk ins Walk ins Walk ins Walk ins Walk ins Walk ins
Any method to track how the walked-in
3 No Yes Yes Yes Yes No
customer got to know about company?
Leads generated through online and offline
4 - - - 50-50 - -
means (percentage)
On an average how do most walk-ins got to Newspaper
5 Newspaper Ads Newspaper Ads Radio Ads Newspaper Ads Newspaper Ads
know you? Ads
Do you have a specific business development
6 Yes Yes Yes Yes Yes No
team? If yes then what is their JD
7 How do you get investors and brokers? BOD, BD BOD, BD BOD, BD BOD, BD BOD, BD BOD
Do you outsource marketing? If yes then
what all?
9 Do you have an updated website? No Yes Yes Yes Yes No
Do you think website creates an impact on
10 No Yes Yes Yes Yes Yes
consumers?
What are your views on digital marketing Very
11 Not effective Very Effective Very Effective Very Effective Very Effective
effectiveness? Effective
How much does one single lead cost you on
12 an average? (Total marketing budget/total - 500-700 200-400 700-2000 1000-1200 -
leads generated in the span under cons)
PROMOTION related questions
How much is your marketing budget per

1 2% PC 2% PC 3% PC 5-7% PC 6-7% PC 1% PC
scheme/in general?
2 Biggest channel invested in for marketing? Print Media Print Media Print Media Radio Ads Radio Ads Print Media
Do you know about SEO? If yes then do you
3 No Yes Yes Yes Yes No
do it?
Do you outsources marketing? If yes then
how much?
Has RERA created more trust, which has Not affected Not affected Not affected Not affected Not affected
5 Not affected sales
helped to increase sales? sales sales sales sales sales
Not affected
Not affected
6 Has GST in any way affected sales? Not affected sales Yes Yes Yes sales
sales
Any special/different promotion technique
7 - - - - - -
adopted by your company?
Table 6 Affordable Housing Sector (Developer Interview Responses)

3.3.2 Affordable Housing Survey (Consumer Affordability)
Figure 16 Consumer Affordability - Ahmedabad
Using the data published in world bank report, the affordable ticket size of housing units is found to
lie between the range of Rs 1,80,000 to Rs 6,30,000. For Mumbai, a similar study has established the
affordable ticket size range of Rs 8,40,000 to Rs 16,80,000. In both the cases, the Price/Income Ratio
(PI) is considered to be 3.5.
Figure 17 Consumer Affordability - Mumbai

3.3.3 HIG/HNI Housing Sector (Developer Interview Responses)

Respondent
Question
Sr. No. R1 R2 R3 R4 R5 R6 R7 R8
General Questionnaire
Residential
Residential, Residential, ,
Residential, Residential, Residential, Residential, Residential,
1 Type of real estate? Commercia Commercial Commercia
Commercial Commercial Commercial Commercial Commercial
l l
LIG,MIG,HI LIG,MIG,HI
2 Type of projects MIG,HIG HIG MIG, HIG LIG,MIG,HIG MIG, HIG MIG, HIG
G G
3 Years since inception 2008 1988 1980 - 1980 2003 1996 1980
Mumbai,
Pune,
4 Cities of operation Ahmedabad Ahmedabad Ahmedabad Ahmedabad Mumbai Mumbai Mumbai
Hyderabad,
London
5 Projects completed in Ahm/Mumbai 15 14 50+ 8 100+ 20+ 43 17
6 Ongoing projects 9 1 3 1 20+ 6 12 5
7 Current unsold inventory 5% 10% 0% 25% 30% 10-20% 25% 25%
Views on last decade of real estate trends in
8 Positive Positive Stagnant Stagnant Positive Stagnant Positive Stagnant
Ahm/Mumbai
Very
9 Views on upcoming decade Positive Positive Positive Positive Very Positive Positive Positive
Positive
RERA,
Which policies majorly affected sales in last Demonitizatio Demonitiza
10 Demonitization - - Housing for - -
decade? n tion, gst.
all
Which incentives have majorly affected Demonitizatio
11 no impact no impact Demonitization no impact no impact no impact no impact
sales? n
Do you have separate teams/experts for
12 Yes Yes Yes Yes Yes Yes Yes Yes
marketing and sales?
How do you allocate marketing budget for
13 Project wise Yearly Project wise Yearly Yearly Yearly Yearly Yearly
the company?
PRODUCT related questions
On what prominent motive you do you Availablitly of Availablitly of Booming Booming Booming Availablitly Availablitly Availablitly
1
decide on having a project? land land location location location of land of land of land
Majorly
How do you go about the market
outsourced, Outsource
2 research for the product? Is it in-house Outsourced In house In house In house Outsourced Outsourced
but also in- d
or outsourced?
house team.
Meet First land
Analysing Analysing
Analysing the Analysing the consutants to parcel is
How is the location for the project the land the land
3 land parcels land parcels float project Consultants Consultants offered and
selected? parcels parcels
available. available. in particular then
available. available.
area evaluated.
Depends on
Depending on Depending on Depending on Depending Depending Budget, and Depending
On what basis do you decide the extent the sector
4 target target target on target on target type of on target
of amenities to be given? and budget
audience audience audience audience audience project. audience
of project.
Do you filter customers? If yes, then
5 No No No No Yes Yes No No
how?
Do you account for unsold inventory
6 while feasibility performing feasibility No No No No Yes No No No
study?
PRICING related questions
Cost price +
premium as Done by Done by Done by
Total cost + L+CC+Mar
1 How do you price your project? L+CC+Margin L+CC+Margin per location + finance finance finance
margin gin
amenity costs team. team. team.
+ margin
Do you have a dedicated
BOD, and
2 team/personnel for pricing? If yes, then BOD BOD BOD Finance FTF FTF BOD
finance
who?
How much is average projected margin
3 30% 40% - 40% 25% 20% 25% 30%
on a single unit?
How much is the cash component in the
4 40% 30% 30% 30% 30-40% - 30-50% 20%
current market?
Has the price of a single unit affected Not really, Not really,
5 Yes No change 5% No change - No change
due to GST? If yes, then how much? little effect. little effect.

PLACE/CHANNEL related questions
Brokers Brokers
Brokers Brokers
Newspaper Newspaper
Newspaper Newspaper
Brokers Ads TV Ads Radio
Ads Radio Ads Radio
Newspaper commercials Ads
Ads Ads
Ads Radio Ads Radio Ads Sponsoring
Sponsoring Sponsoring
Sponsoring Sponsoring events
Brokers, Brokers, Brokers, events events
events Digital events Digital
newspaper, newspaper, newspaper, Digital Digital
1 Which channels do you use for promotions? marketing Digital marketing
radio, trade radio, trade radio, trade marketing marketing
Other print marketing Other print
shows shows shows Other print Other print
media Trade Other print media
media Trade media Trade
events and media Trade Trade
events and events and
shows Others events and events and
shows shows
shows shows
Others Others
Others Others
2 How do you obtain majority of leads Walk-Ins Walk-Ins Walk-Ins Walk-Ins Walk ins Invites Invites Walk-Ins
Any method to track how the walked-in
3 No No No No Yes Yes Yes No
customer got to know about company?
Leads generated through online and offline 100%
4 - - 100% offline 50-50 70-30 - -
means (percentage) offline
On an average how do most walk-ins got to Newspaper Newspaper Newspaper Newspaper Newspaper Newspaper Newspaper
5 Newspaper Ads
know you? Ads Ads Ads Ads Ads Ads Ads
Do you have a specific business development
6 Yes Yes No No Yes Yes yes Yes
team? If yes then what is their JD
No investors No investors
or company or company
7 How do you get investors and brokers? - BOD BOD, BD BOD, BD - -
appointed appointed
brokers. brokers.
Do you outsource marketing? If yes then what
8 Yes Yes No Yes Yes Yes Digital, print Yes
all?
9 Do you have an updated website? Yes No Yes No Yes Yes Yes Yes
Do you think website creates an impact on
10 Yes Yes Little impact Yes Yes Yes Yes Yes
consumers?
What are your views on digital marketing Very Very Very Very
11 Very Effective Very Effective No view Very Imp
effectiveness? Effective Effective Effective Effective
How much does one single lead cost you on an
12 average? (Total marketing budget/total leads 400-700 - - - 700-2000 1000-1200 Rs 1000 500-700
generated in the span under cons)
PROMOTION related questions
How much is your marketing budget per

1 5% PC 2% PC 2% PC 1% PC 5-7% PC 6-7% PC 5% PC 3-5% PC
scheme/in general?
Biggest channel invested in for Print
2 Print Media Print Media Print Media Hoardings Radio Ads Radio Ads Print Media
marketing? Media
Do you know about SEO? If yes then do
3 Yes No No No Yes Yes Yes Yes
you do it?
Do you outsources marketing? If yes
4 Yes Yes No No Yes Yes Yes Yes
then how much?
Not Not
Has RERA created more trust, which has Not affected Not affected Not affected Not affected
5 Yes affected Yes affected
helped to increase sales? sales sales sales sales
sales sales
Not affected Not affected Not affected
6 Has GST in any way affected sales? Yes Yes Yes Yes Yes
sales sales sales
Any special/different promotion
7 - - - - - - - -
technique adopted by your company?
Table 7 HIG/HNI Housing Sector (Developer Interview Responses)
R1, R2, R3, and R4 are developers from Ahmedabad, and R5, R6, R7, and R8 are developers based
in Mumbai.

3.3.4 HIG/HNI Housing Sector (Consumer Perception Survey)
The consumer survey has two main applications:

• To establish a general demographic profile of the respondents in terms of age, income,
marital status, gender, etc.
• To understand consumer preferences while purchasing real estate property.
Ahmedabad Consumer Perception Survey:

No. of BHK preferred

2 BHK
16%
More than
3 BHK
36%
3 BHK
48%
2 BHK 3 BHK More than 3 BHK
Mumbai Consumer Perception Survey:

No. of BHK preferred

40
35
30
25
20 38
15
10
16
5 10
0 1
1 BHK 2 BHK 3 BHK More than 3 BHK

3.4 Methodology of Analysis
Using the demand from the perception surveys of both the cities, the preferences are matched with
the supply by the developers in respective cities considering the affordability in each sector under
scope.
NEED SUPPLY
CUSTOMER MARKETING STRATEGY DEVELOPER
DATA SET 1 COMPARISON DATA SET 2
Figure 18 Methodology for Analysis
Using the established comparison, the analysis is used to propose an efficient marketing campaign
including proposition of locations for new developments and pricing of the units.
DATA SET 1 COMPARISON DATA SET 2
What are the current

demand-supply realities?
What the company should

do?
How can the government

intervene?
Further innovations in the

sector
After the marketing campaign for the developer company is proposed, propositions are laid for
government about how a particular sector can further be capitalized on through policies and
initiatives.

3.5 Analysis
3.5.1 Calculation of Sample Size
For Affordable Housing sector:

In case of this sector, no preference/perception is carried out, as it is assumed that there is already
existing demand in the market for affordable homes. The required consumer demographic data has
been referred from external sources.
For HIG/HNI Housing sector:
Here the sample size is calculated by two ways:
METHOD 1:
Since this is a city wide survey, the population size is >10,000. Considering, a confidence level of
95%, and maximum allowable deviation of 10%. P value in this case is taken out to be 50%.
Using,
The value of ‘n’ is calculated to be 96.04 ~ 100.

METHOD 2:
In the real estate sector, marketing agencies and consultancies have established that the conversion
rate is 1%. This means for ever 100 potential leads they generate, they sell one unit.
Hence, assuming that we wish to sell one unit, we need 100 responses to understand the general
demand.
Using this method, n = 100.
Hence the sample size selected for the research is 100 for both cities in HIG sector.

3.5.2 Affordable Housing Sector – Analysis
Consumer Affordability in Ahmedabad

The majority target market lies between the monthly household income of Rs 7,000 to Rs 15,000 per
month for Ahmedabad.
Considering Price/Income (PI) ratio to be 3.5 for EWS/LIG sector.
As per Ministry of Housing and Urban Poverty Alleviation (MHUPA), affordable housing/dwelling
units should have a minimum carpet area of 21-27 sq m (EWS category) and 28-40 sq m (LIG
category).
Here, for calculation purposes, the average size of dwelling unit is fixed to be 30 sq m.
Hence, the affordable per sq ft selling rate is calculated to be Rs 560 – Rs 1956.
Comparison with the Supply
The developers under the case studies selected, have the following selling rates in respective areas of
operation:
Area Price Range (INR/sq ft) Affordability (Yes/No)
Vaishnodevi ₹ 2,556 -5,296 No
Gota ₹ 1,260 – 3,500 Yes
Ranip ₹ 1,429 - 3,846 Yes
Naroda ₹ 1,728 - 2,400 Yes
Narol ₹ 1,471 - 2,116 Yes
Vatva ₹ 1,449 - 3,249 Yes
Makarba ₹ 2,252 - 4,545 No
Table 8 Area wise selling rate in affordable housing sector- Ahmedabad
Observations
• Gota, Ranip, Naroda, Vatva and Narol areas have the right price scenario to meet the
affordability of the consumers.
• The problem is that the supply for the given dwelling size window is relatively low.
• Hence, there is a need of more projects for the dwelling size mentioned.
• Vaishnodevi and Makarba have comparatively higher unsold inventories due to the
established findings.
Consumer Affordability in Mumbai
The majority target market lies between the monthly household income of Rs 20,000 to Rs 40,000
per month for Mumbai.

Considering Price/Income (PI) ratio to be 3.5 for EWS/LIG sector.

As per Ministry of Housing and Urban Poverty Alleviation (MHUPA), affordable housing/dwelling
units should have a minimum carpet area of 21-27 sq m (EWS category) and 28-40 sq m (LIG
category).
Here, for calculation purposes, the average size of dwelling unit is fixed to be 30 sq m.
Hence, the affordable per sq ft selling rate is calculated to be Rs 2,608 – Rs 5,217.
The developers under the case studies selected, have the following selling rates in respective areas of
operation:
Area Price Range (INR/sq ft) Affordability (Yes/No)
Virar ₹ 1,520 – 5,502 Yes
Malad ₹ 2,421 - 6,582 Yes
Dombivali ₹ 1,949 – 5,250 Yes
MBT ₹ 813 – 4,000 Yes
Table 9 Area wise selling rate in affordable housing sector - Mumbai
Observations
• All the areas under consideration fall under the affordable zones.
• The pricing and product are adequate and justified.
• Hence, the unsold inventories are very low.
Analysis of marketing strategies adopted in Ahmedabad and Mumbai:
✓ The promotions are widely done through newspaper ads and bill board advertisings in both
cities. The focus has been to reach out to common crowd in vernacular languages.
✓ Majority of the leads are generated only through walk-ins at the site office in both cities.
✓ Second main marketing channel is observed to be radio advertisings.
✓ Digital marketing hasn’t been explored to its full extent in Ahmedabad as compared to
Mumbai where the ratio of Offline to Digital marketing expenditure is around 70-30. In case
of Ahmedabad, the developers still believe in offline modes and tend to capitalise on this
channel.
✓ On an average, the marketing cost for this sector in case of Ahmedabad is found out to be 2%.
However, in Mumbai, the same goes up to 4-5%.

3.5.3 HIG/HNI Housing Sector – Analysis
According to real estate articles, the average age of a home buyer in 2007, was 39. However, changing
demographics in income levels and stable real estate prices, have brought down the average age of
first time home buyers to 27 in 2012-13.
Currently, it is estimated that the age bracket of 25-30 is the new average in this area.
Considering that a real estate project, if proposed today and implement hereafter, will take at least 3-
4 years for completion.
Therefore, the target market would currently be in the age bracket of 22-27.
Consumer profiling and preferences - Ahmedabad
✓ 71% of the respondents belong to the consumer category. (Median Age = 23, and Avg Age
of respondents = 24.10).
✓ 85% of the respondents have a family size between 3-5. And only 1 or at the most 2 earning
members are there in the family.
✓ Majority of respondents have gross total household income b/w Rs 5-10 lacs per annum
(37%) and Rs 10-20 lacs per annum (33%).
✓ Most respondents 48% want a 3 BHK unit that is recently completed or under construction.
✓ Maximum preference given to reasonable price, and a developing/developed locality and on
connecting roads over main roads (83%).
Amenities needed:
• 24x7 security
• Parking for 2 cars
• Elevators
• Power Backup
• Common area
• Children’s Park
The developers selected for case studies have mainly floated projects in developed and posh areas
mainly to cater to the HIG/HNI sector.
The standard amenities are provided and maintained.
These units are less in supply and demand is already existing in HNI sector, hence they get absorbed
very easily (3/4 BHK).

Area Configuration Price per sq ft

Satellite 3/4 BHK ₹ 4,540 - 6,317
Shyamal 3/4 BHK ₹ 4,801 - 6,194
2/3 BHK
Prahladnagar 3/4 BHK ₹ 4,458 - 6,767
South Satellite 3/4 BHK
Bopal Shyamal 3/4 BHK South bopal 2/3 BHK ₹ 2,938 - 4,136
Prahladnagar 3/4 BHK
Shantipura
Applewoods
2/3 BHK ₹ 3,572 - 3800
2/3 BHK Circle
Table 10 Area wise selling rate in HIG housing sector - Ahmedabad
Figure 19 Case study site locations - Ahmedabad
Considering the income of the respondents, and PI ratio as 4. The target market pricing lies at Rs 50
Lacs to Rs 1.2 Cr.
If a person wants 3 or 4 BHK unit in this cost, then the best areas to float a project are the inner
peripheral zones.
Potential Areas:
Sola, Gota, Applewoods, South Bopal
Figure 20 Feasible locations for upcoming projects
Consumer profiling and preferences - Mumbai

Majority of the respondents belong to the consumer category. (Median Age = 28, and Avg Age of
respondents = 33.2).
66% of the respondents have a family size between 3-5. And only 1 or at the most 2 earning members
are there in the family.
Majority of respondents have gross total household income b/w Rs 10-30 lacs per annum (50%).

Most respondents 80% want a 2/3 BHK unit that is recently completed or under construction.
Maximum preference given to reasonable price, and distance from work with project constructed
on connecting roads over main roads (50%).
Amenities needed:
• 24x7 security
• Elevators
• Power Backup
• Children’s Park
All the areas under consideration are very close to major business districts. Hence, the main criteria
of distance to work is satisfied in case of all these areas.
There are unsold inventories in this sector even if the configuration of units are as per the demand,
but, the exorbitant prices in these areas have led to an average 20-25% unsold inventories.
Area Configuration Price per sq

ft
Andheri 2/3 BHK ₹ 8,417 -
Andheri
21,110
Juhu Juhu 2/3/4 BHK ₹ 26,667 -
96,774
Khar Navi
Mumbai Khar 2/3 BHK ₹ 6,850 -
18,125
Worli Worli 3/4 BHK ₹ 37,500 -
47,368
Navi Mumbai 2/3/4 BHK ₹ 9,091 -
15,341
Table 11 Area wise selling rate in HIG housing sector - Mumbai
Figure 21 Case study site locations - Mumbai

3.5.4 Unsold Inventories: Findings
The above illustrated graphs have been studied, and the market supply and demand have been
compared on the basis of data collected. The following findings have surfaced during the research
work:
• The average unsold inventory in Ahmedabad falls between 10-20% inclusive of all housing
sectors. However, affordable housing sector has more unsold inventories than HIG sector
housing.
• The average unsold inventory in Mumbai falls between 15-30%. Mumbai shows a similar
trend as Ahmedabad in terms of sector wise unsold inventories.
• The developers are not sitting on huge piles of unsold inventories as the reports and articles
suggest.
• Majority (80-90%) of units get absorbed as per the sales plan by the developers, however
these units have not been occupied by end users. Rather, major inventories and brokers have
huge piles of unsold inventories, which has stagnated the market rates in last 5 years.
I
N
V
E
90-100% S 50-70%
Project Absorption Absorption End Users
T
O
R
S
Figure 22 Pile-up inventories - Findings

3.6 Government Inputs
The affordable housing sector in Ahmedabad, as per the analysis drawn above, is not able to cater to
its full potential. The need does exist in the market, but the developers are not able to attract enough
buyers for the same.
The case study of Mumbai can be studied, which shows how land unlocking for decentralisation of
commerce and industries helped Mumbai grew in terms of affordable housing.
Virar Mumbai In case of Mumbai, the trend of

beyond
Thane growth has been linear as shown in
the map.
Malad
Dombivali
The growth started with
development of Colaba/Churchgate
as the CBD and gradually moved
towards to North. Over the years, a
number of SBDs have been
strategically planned like BKC,
Goregaon, Hiranandani, Thane,
Navi Mumbai, etc. and affordability
has been ensured in terms of the
micro economy of the area.
Figure 23 Mumbai city growth trend
In case of Ahmedabad, the trend of

growth has been radial as shown in
Vaishnodevi the map.
Gota
The growth started with old city and
Ranip the city gradually expanded in the
Naroda western side beyond the river
Sabarmati. However, currently there
is only one major commercial centre
Makarba
like Prahladnagar apart from CG
Road. And, industries have been
Vatva
developed at Vastral, Narol. But
Narol looking at the RAH zones, there is
an extensive need to develop local
micro markets so as to ensure
feasibility as in terms of Mumbai.
Figure 24 Ahmedabad city growth trend

4. CONCLUSION/INFERENCES
4.1 Proposition of Marketing Campaign
The marketing campaign proposed considers the marketing funnel attributes, namely:
AWARENESS
CONSIDERATION
CONVERSION
Figure 25 Marketing funnel
✓ Awareness – Reaching out to consumer

✓ Consideration – Passing out relevant information to facilitate decision making
✓ Conversion – Converting the lead into a customer
AWARENESS:
Looking at current realities, the major marketing shift needed is in the HIG sector. This is because
the EWS/LIG sector has enough demand which makes them readily absorbed in the market.
However, in case of HIG sector there is high competition due to more supply and less demand.
The users are more active on digital platforms.
Hence for advertising, a 60-40 ratio to be maintained for Offline and Digital advertising.
Out of the 60%, 40% will go towards newspaper and radio advertising and 20% for billboards.
Digital platforms to be utilised:
✓ Search Engine Optimization
✓ Google Ads
✓ Social media advertising
✓ Real estate blogs for brand building in the city (community value branding)
CONSIDERATION:
This is the most important step in the marketing funnel, as the decision making happens during this
part.

Hence, one needs to make proper use of technology to deliver the relevant and useful information.
The traditional practices include site visit, and meetings with the company personnel and then
understanding the cost structure and procedure. However, with proper and well planned technological
aids, we can make sure that the consumer gets the same information at his desk including the needed
views beforehand.
✓ Making a VR/360 view friendly website.
✓ Online scheduling of meeting, and site visits.
✓ Financial details (sell quotes and breakup) to be made available online.
✓ Ensuring proper transparency in terms of area details.
This significantly increases the chances of conversion when the person comes for the meeting with
company personnel.
CONVERSION:
A proper feasibility study for the need of the project combined with an efficient marketing campaign
designed specifically for the targeted market and audience, will give very high conversion rates.
EFFICIENT MARKETING
FEASIBILITY CHECK + CAMPAIGN
CONVERSION

4.2 Conclusion
As per the analysis, in the HIG sector, the developers are targeting the right people however the
realities differ in terms of inventory holdings. Developers do not have any major piled up inventories.
The problem lies in the apparent bubble created because of lack of end users in market and bulk
holdings by investors.
In case of affordable housing segment, government in Ahmedabad needs to rethink its policy not in
terms of incentives to buyers and developers but in terms of development of commercial hubs so that
the affordable zones can really become affordable. This brings in not only the economical and
financial aspects of affordability but also social aspects.
The marketing strategies are apt for the local realities, however more technological inputs can
multiply the results multi-fold. The campaigns now need to be designed for the upcoming generation
of consumers.
Developers in Mumbai have stated opting digital marketing, however Ahmedabad still is in its
budding stage.

REFERENCES
✓ Government census data.

✓ ‘More but Different Government for Slum Free and Livable Cities’ policy research paper by
The World Bank Sustainable Development Network Finance Economics and Urban
Department
✓ Marketing strategy for real estate developers in Ahmedabad [B TH-0681 MIS]
✓ Factors affecting real estate development in certain pockets of Ahmedabad [B TH-0707
SHA]
✓ Real estate reports by JLL, Cushman and Wakefield, Knight Frank.
✓ American Marketing Association website.
✓ Investopedia.
✓ https://www.99acres.com/articles/emergence-of-young-home-buyers-in-indian-real-
estate.html
✓ http://dnasyndication.com/dna/dna_english_news_and_features/Young-guns-blazing_-27-
average-age-of-home-buyers-in-India/DNBAN74622

ANNEXURE
Questionnaire 1: CONSUMER SURVEY

Questionnaire 2: DEVELOPER INTERVIEW

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Marketing Strategies adopted by Real Estate developers in Ahmedabad and

Thesis · May 2018

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Manan Mehta | UC 2213

UNDER GRADUATE PROGRAMME IN FACULTY OF TECHNOLOGY

STUDENT NAME : Manan Mehta

Thesis Title : Comparison of marketing strategies adopted by real estate developers.

Signature of the Guide Dean, Faculty of Technology

UC 2213 | Manan Mehta i

UC 2213 | Manan Mehta ii

UC 2213 | Manan Mehta iii

UC 2213 | Manan Mehta iv

3.5.1 Calculation of Sample Size............................................................................................... 22

Figure 1 Research Design Process ...................................................................................................... 2

UC 2213 | Manan Mehta v

Table 1 Ahmedabad population demographics ................................................................................... 6

UC 2213 | Manan Mehta vi

GDP: GROSS DOMESTIC PRODUCT

UC 2213 | Manan Mehta vii

1.2 NEED FOR THE STUDY

✓ The unsold inventories in various metro cities range from 15-60%.

UC 2213 | Manan Mehta 1

1.3 SCOPE OF THE STUDY

1.4 RESEARCH DESIGN

Defining Collecting Preparing

Figure 1Research Design Process

1.4.1 Primary Data

1.4.2 Secondary Data

UC 2213 | Manan Mehta 2

2.1 Real Estate

Commercial Real Estate

Industrial Real Estate

UC 2213 | Manan Mehta 3

Figure 2 Real Estate market growth in India

Figure 3 Unsold Inventories in major Indian cities

2.3 Marketing – Real Estate’s Perspective

UC 2213 | Manan Mehta 4

CUSTOMER MARKETING STRATEGY DEVELOPER

Figure 5 Marketing Strategy Schematic

UC 2213 | Manan Mehta 5

2.4 The Need

2.4.1 Case 1: Ahmedabad

Year Population (Approx. figures)

UC 2213 | Manan Mehta 6

Figure 7 Monthly Household Income distribution in Ahmedabad

Year Population (Approx. figures)

UC 2213 | Manan Mehta 7

Table 4 Mumbai population demographics

Total no. of House Holds: 20,94,171

Total Population: 2,13,00,000

Figure 8 Population Growth of Mumbai (ext.)

Figure 9 Monthly Household Income distribution in Mumbai

UC 2213 | Manan Mehta 8

Table 5 Ideal cost of affordable homes - Mumbai

A target market is defined as a group of consumers at which a product or service is aimed.

Figure 10 Target Market