A WINTER INTERNSHIP PROJECT REPORT ON

DECREASED PROFITABILITY FOR REAL ESTATE COMPANIES, (in “SellWorth

Realspace LLP”)

SUBMITTED TO SAVITRIBAI PHULE PUNE UNIVERSITY

BY

(RAJDEEP SAHA) - MBA – Batch 2023-2025

Roll No: (MBA23FT34)

UNDER THE GUIDANCE OF

(Vinay Nandre)

IAEER’S PUNE INSTITUTE OF BUSINESS MANAGEMENT,

PUNE- 412115

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 To whom so ever it may concern

This is to certify that the Project Report titled “Decreased Profitability for
Real Estate Companies,” is an authentic work carried out by Mr. Rajdeep
Saha from MBA of IAEER’s Pune Institute of Business Management, Pune
- 412115 as a fulfillment of MBA Course of Savitribai Phule Pune University.
He has worked under our guidance and satisfactorily completed his project
work.

Place: Pune Date:

Signature of Internal Guide Signature of HOD

Signature of Controller of Examinations Signature of Director

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DECLARATION BY THE STUDENT
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I hereby certify that the work which is being presented in the present
WINTER Internship Report entitled “Decreased Profitability for Real
Estate Companies” is for fulfilment of the requirement for the award of
Degree of Masters of Business Administration, Pune Institute of
Business Management, Pune, India is an authentic record of my own
work carried out under the supervision and guidance of Dr. Vinay Nandre
of Department of Marketing.

In keeping with the ethical practice in reporting scientific information, due

acknowledgements have been made wherever the findings of others have
been cited.

(Student Name and sign)

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 ACKNOWLEDGMENT

The internship opportunity with SellWorth Realspace LLP, provided me a platform to work with highly
qualified and experienced individuals who opened new avenues of learning and professional
development for me. Therefore, I consider myself as a very lucky individual as I was provided with
an opportunity to be a part of it.

This internship would not have been the same without the enthusiasm and vigor provided by my
Majeed Mujawar and Co-Founder whose behavior was outstanding. Hence, I would like to express
my deepest gratitude to him/her who heartily welcomed me for the internship and whose guidance
and dedication encouraged me throughout the summer internship program.

I express my deepest thanks to Vinay Nandre and Professor for taking part in useful decision &
giving necessary advices and guidance and arranged all facilities to make life easier all throughout
the internship program. His valuable knowledge helped me gain a better grasp on Fintech which has
helped me understand Finance Department in a better way.

It is my radiant sentiment to place on record my best regard, deepest sense of gratitude to, for his
careful and precious guidance which were extremely valuable for my study both theoretically and
practically.

Sincerely,

Students Name: Rajdeep Saha

Place: Pune
Date:

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 TABLE OF CONTENTS

Sr No Particulars Page
1 Project title page Nos
(i)
2 Certificate by PIBM (ii)
3 Certificate by Company (iii)
4 Declaration by the student (iv)
5 Acknowledgement (v)
6 Table of contents (vi)
7 Project Synopsis 1
8 Executive Summary 2
9 Objective of the study 3-4
10 About the sector ….
11 About the company and department ....
12 Internship Summary

13 Project Description
14 Research Methodology (only for research
15 projects)
Data Analysis
16 Learnings/Findings/Observations
17 Contribution to the Host Organization
18 Conclusion
19 Suggestions/Future Scope
20 References/Bibliography
21 Appendix

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Project Synopsis

Decreased profitability for real

Project Title
estate companies

Company Name SellWorth Realspace LLP

Student Name Rajdeep Saha

Student Roll No MBA23FT34

Project Guide Name (External

Mr. Majeed Mujawar
Mentor)

Project Guide Designation (External

Co-Founder
Mentor)

Project Guide Name (Internal

Dr. Vinay Nandre
Mentor)

Project Guide Designation (Internal

Professor of Marketing Department
Mentor)

Confidential Report (Yes/No) No

Duration of project 45 Days

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EXECUTIVE SUMMARY
The real estate industry has been experiencing significant challenges, leading to decreased
profitability for many companies. Key factors contributing to this decline include market saturation,
economic uncertainty, rising costs, and shifting consumer preferences. Market saturation, particularly
in urban areas, has intensified competition among companies, resulting in reduced property prices
and rental rates. Economic uncertainty, including geopolitical tensions and trade disputes, has
caused a slowdown in property transactions and investment activities, further dampening profitability.

Rising construction costs, driven by increased material prices and labor shortages, have eroded
profit margins for developers. Additionally, regulatory compliance costs and taxes have surged,
placing additional financial burdens on companies.

Changing consumer preferences, particularly among millennials and Generation Z, have reshaped
the demand for real estate properties, forcing companies to adapt their offerings at increased costs.
Recommendations include diversifying portfolios, adopting technology like artificial intelligence, big
data analytics, and virtual reality, focusing on sustainability, and forming strategic partnerships with
financial institutions, technology firms, and government agencies.

By implementing these strategies, real estate companies can adapt to the changing environment,
mitigate profitability challenges, and position themselves for long-term success in the dynamic
market. By implementing these measures, real estate companies can position themselves for long-
term success in the dynamic market.

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Research Objectives for “Decreased Profitability in Real Estate
Companies”
o Key Drivers of Decreased Profitability:
 Identify and analyse primary factors contributing to decreased profitability.
 Assess the relative impact of economic, market, regulatory, and internal
operational factors.
o Economic and Market Trends:
 Analyse economic trends and their influence on the real estate industry.
 Examine market dynamics, including supply and demand factors, competition,
and pricing trends.
o Regulatory Impacts:
 Investigate regulatory changes and policy interventions affecting profitability.
 Assess compliance costs and operational challenges.
o Technological Disruptions:
 Evaluate the impact of technological advancements on the real estate industry.
 Explore how technology can enhance efficiency, reduce costs, and adapt to
market changes.
o Understanding Consumer Preferences and Societal Shifts:
 Analyse changing consumer preferences and societal trends influencing
demand for real estate properties.
 Explore how lifestyle, demographics, and cultural factors contribute to
challenges faced by real estate companies.
o Operational Efficiency and Cost Management:
 Evaluate operational efficiency and identify areas for cost optimization.
 Explore best practices for improving efficiency.
o Global and Local Economic Conditions:
 Investigate the impact of global economic conditions on local.
o Strategies for Resilience and Adaptation:
 Explore strategic initiatives for real estate companies to navigate periods of
decreased profitability.
o Provide Policy Recommendations:
 Offer policy recommendations for regulators and policymakers to create an
enabling environment for sustainable real estate industry growth.
The lower profitability of real estate enterprises, the research intends to give insights, guide strategic
decision-making, and comprehend difficulties within the real estate market. Among the main
purposes are:

 Study on Decreased Profitability for Real Estate Companies

 Identifies root causes of decreased profitability for effective solutions.
 Provides strategic insights to real estate industry stakeholders.
 Assesses risks associated with decreased profitability and develops mitigation strategies.
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  Explores opportunities to enhance operational efficiency within real estate companies.
 Analyzes how real estate companies can adapt to evolving market trends and technological
advancements.

About the Sector – Real Estate

About the Sector – Real Estate
Market Size
This includes residential and commercial properties that are not traded on stock exchanges.
According to a report by Knight Frank, the Indian private real estate market was valued at US$208
billion in 2021 and is expected to grow to US$300 billion by 2025.currently in 2023 it is $265m.

Market Share
In the Indian real estate industry, Knight Frank does not explicitly quantify individual business
market share. They instead concentrate on larger industry trends and insights from other areas
such as residential, commercial, and office. However, their reports and statistics can still give
significant information about various market participants.

Sector Contribution to GDP

The Indian real estate market is now anticipated to contribute 7.3% of national GDP, according to
Knight Frank's "India Real Estate: Vision 2047" study, which was issued in August 2023. However,
the research expects considerable future growth:

By 2047, the sector is expected to expand to $5.8 trillion and contribute 15.5% to the GDP.
This significant increase underscores the projected growth of the Indian economy itself,
estimated to reach between $33 - $40 trillion by 2047.
The residential segment is anticipated to hold a dominant position, with an estimated
output equivalent of $3.5 trillion in 2047.
Private equity investments in the sector are also expected to rise steadily, reaching $54.3
billion by 2047 with a CAGR of 9.5%.

Sector composition

❖ Residential: This includes single-family homes, apartments, condos, and other types of
housing for people to live in.
❖ Commercial: This includes office buildings, retail spaces, hotels, and other properties
used for business purposes.
❖ Industrial: This includes factories, warehouses, and other properties used for
manufacturing and logistics.
❖ Logistics: This includes warehouses, distribution centers, and other facilities used for
storing and transporting goods.
❖ Office: This includes office buildings and co-working spaces used for business operations.

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Sector & Sector Composition CAGR

Sector Geographic Scope Historical CAGR Projected CAGR

Residential: India 7-8% (past 5 years) 5-6% (next 5

years)

Metro cities (Delhi, Mumbai) 9-10% (past 5 6-7% (next 5 years)

years)

Tier-II & Tier-III cities 8-9% (past 5 years) 7-8% (next 5 years)

Commercial: India 5-6% (past 5 years) 4-5% (next 5

years)

Office (Bangalore, 7-8% (past 5 years) 5-6% (next 5 years)

Hyderabad)

Retail 3-4% (past 5 years) 3-4% (next 5 years)

Industrial: India 8-9% (past 5 years) 9-10% (next 5

years)

Logistics & Warehousing 10-12% (past 5 11-12% (next 5

years) years)

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Sector & Sector Composition growth/de-growth catalyst of real-estate

Growth:

 Economic conditions: Rising GDP, employment, and disposable income generally

boost demand across all sub-sectors.
 Government policies: Policy initiatives like
infrastructure development, affordable housing schemes, tax benefits,
and FDI liberalization can fuel growth.
 Urbanization: Increasing migration to cities creates demand for residential and commercial
spaces.

 Changing Demographics: Growing young population with shifting preferences towards

modern living spurs demand for specific segments like co-living spaces.
 Technology Adoption: PropTech advancements like virtual tours, online booking
platforms, and smart buildings enhance operational efficiency and attract investments.

De-growth:

 Economic Slowdown: Declining GDP, job losses, and reduced disposable income
dampen demand across all sub-sectors.
 Interest Rate Fluctuations: Rising interest rates can make property acquisition and
rentals expensive, impacting demand.
 Regulatory Hurdles: Delays in approvals, complex regulations, and land acquisition issues
can stall development projects.
 Over-Supply: Excess supply in specific segments, particularly in certain locations, can lead
to price corrections and stagnation.
 Disruptive Technologies: E-commerce and online work trends might impact demand for
retail and commercial spaces.

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Government Initiatives & FDI
According to Knight Frank, both government programs and Foreign Direct Investment (FDI) have a
significant impact on the Indian real estate scene. Here's a rundown of their primary findings:
Government Initiatives:

❖ Policy reforms: Initiatives such as the Real Estate (Regulation and Development) Act
(RERA) and the Goods and Services Tax (GST) have increased investor confidence and
encouraged FDI by simplifying regulatory frameworks, expediting approvals, and
encouraging transparency.
❖ Infrastructure development: Increased expenditure on roads, railways, airports, and smart
cities improves connectivity while also opening up new investment possibilities in
specialized real estate categories such as logistics and storage.
❖ inexpensive housing push: Programs such as "Housing for All" are increasing demand and
development in the mid-segment and inexpensive housing segments, opening up new
prospects for developers and investors.

FDI in Indian Real Estate:

➢ Increased FDI inflows: According to Knight Frank, FDI inflows into Indian real estate have
been steadily increasing, notably in the commercial and industrial sectors. This is due to
reasons such as FDI norm liberalization, attractive returns, and a developing economy.
➢ Concentrate on certain segments: Foreign direct investment is generally focused on office
spaces, industrial parks, logistical infrastructure, and high-end residential developments.
➢ Origin of investors: Major investors come from Singapore, the United States, the United
Kingdom, Canada, and the Middle East, drawn by India's long-term economic potential and
stable regulatory environment.
➢ Opportunities and challenges: While FDI inflows are encouraging, obstacles like as land
acquisition complications, regulatory impediments, and currency volatility necessitate more
streamlining to fully realize the sector's potential.

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Porter 5 Force Model Analysis

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Macro & Micro Environmental Analysis of the Real Estate
Understanding the external variables driving the real estate sector is critical for making
educated decisions as an investor, developer, or homeowner. Let's take a look at the
macro and micro features of the real estate market:

Macro Environment:
PESTEL Analysis:

 Political: Government taxes, zoning, infrastructure development, and housing

affordability initiatives may all have a big influence on demand and supply.
Political stability also influences investor confidence.
 Economic: Mortgage affordability, investment flows, and property values are
influenced by interest rates, inflation, unemployment, and general economic
growth. Rising interest rates frequently cause a market downturn.
 Social: Demographic developments such as population increase, population
aging, urbanization, and changing household arrangements all have an impact
on housing demand and preferences. Cultural views regarding homeownership
and sustainability are also important considerations.
 Technological: Construction material innovations, energy efficiency, smart house
technologies, and virtual tours are reshaping the business. Proptech and online
platforms are altering the way we locate and deal in real estate.
 Environmental: Concerns about climate change, natural catastrophes, and
environmental restrictions all have an influence on land.
Micro Environment:

 Suppliers: Development costs and project feasibility are influenced by land,

building materials, labor, and financial sources. These suppliers' bargaining
strength can have an impact on profitability.
 Competitors: Pricing, marketing techniques, and vacancy rates are influenced by
other developers, real estate brokers, and property managers in the relevant
market sector. It is critical to comprehend competitive advantages.
 Customers: Understanding the demographics, wants, and preferences of the
target buyer or renter is critical for product creation, marketing, and pricing
strategies. It is critical to do market research.
 Intermediaries: Real estate agents, mortgage brokers, and property managers
play important roles in bringing buyers and sellers together, arranging financing,
and managing properties. It is critical to cultivate good relationships.
 Local zoning: Construction laws, and environmental requirements all have an
influence on project feasibility and operational costs. Compliance is critical.

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About the company: - SellWorth Realspace
Brief History of company
SellWorth Realspace understands that real estate is about more than just structures; we
create value for developers and clients, bringing their visions to life through meaningful
partnerships. With 30 years of experience, our team redefines product positioning and
utilizes technology-driven sales to influence market demand, ensuring success in a
competitive market.
Sellworth's mission is to transform the real estate industry by simplifying the sales
process for construction companies. By leveraging a skilled sales approach and taking
a holistic view, Sellworth is committed to delivering exceptional service that drives
success for both our clients and their customers. Our ultimate goal is to create a
seamless, stress-free experience that revolutionizes the way people buy and sell real
estate.
2.2.2 Brief Introduction about company
SellWorth Realspace is a real estate consulting firm that works with developers to
simplify the sales process for construction companies. They have over 30 years of
experience working with top real estate brands across India.

SellWorth Realspace's mission is to transform the real estate industry by working with
developers to:

 Find market gaps

 Reposition products
 Use technology-driven sales processes to shape consumer demand

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Brief notes on Top Management

Companies Service
SellWorth Realspace is a company that uses its expertise in marketing, sales, CRM,
product design, and innovation to dominate the real estate industry. They aim to provide
exceptional service to their clients and establish themselves as a trustworthy, reliable,
and innovative brand.

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Michael Porter Value Chain Analysis
Channel Partner's Internal Value Chain:

Inbound logistics includes lead creation, property sourcing, acquisition, and relationship
management with developers, property owners, and prospective purchasers.

Operations include market analysis, negotiations, legal paperwork, staging, and

renovations in addition to property appraisal.

Outbound logistics include buyer qualification, property viewings, marketing and

advertising, and contract negotiations for leases or sales.

Marketing and Sales: Creating marketing campaigns, lead conversion plans, and
positioning the channel partner within the real estate industry.

Service: Post-purchase services such as property administration, buyer/tenant

communications, property upkeep planning, and warranty fulfillment.

Channel Partner's External Value Chain:

• Supplier Power: The ability to negotiate on behalf of builders, landowners, and rivals in
the channel. Factors such as exclusivity agreements, market concentration, and brand
reputation may have an impact on this.

• Buyer Power: The ability of prospective tenants or buyers to bargain. A few examples
of these include buyer knowledge, the availability of alternatives, and market demand.

• Threat of New Entrants: New rivals might enter the real estate market with ease. A few
examples of them include licensing requirements, regulatory hurdles, and brand
recognition.

• Threat of Substitutes: The existence of substitute channels via which tenants or buyers
can obtain properties, such internet forums or direct communication with developers.

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Using Porter's Framework for Competitive Advantage:
• Determine Value Activities: Identify the value chain activities that provide the greatest
value to customers and yield the best profit margins. Pay attention to how to
differentiate and optimize these tasks.

• Cost Management: Strive for cost leadership and operational efficiency by analyzing
and minimizing the expenses related to each value activity.

• Differentiation: Develop value and distinctive selling propositions that set the channel
partner apart from rivals. Specialization in particular property kinds, client segments, or
service offerings may be necessary for this.

• Relationships: Establish trusting bonds with buyers, sellers, developers, and other
service providers as well as other stakeholders along the value chain. Collaborations
can improve access to resources and efficiency.

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Segment, Target & Positioning
Segment

Demographics include age, family size, income, occupation, and way of life.

Geographic: Position, preferred urban/rural/suburban areas, ease of access to facilities.

Psychographic: Beliefs, passions, financial objectives, and plans for using real estate
(main, rental, vacation home).

Behavioral factors include prior real estate purchases or rents, favored search
platforms, marketing responsiveness, and financial limitations.

Target

Concentrate on one or two main parts: Focusing more narrowly enables more in-depth
comprehension and customized services.

Think about the potential and size of the segment: Give priority to market sectors that
have the size and room to grow to ensure successful operations.

Match product offerings to market demands: Recognize the unique requirements,

inclinations, and problems that your target markets face.

Positioning

Specialized Selling Point (USP): What sets you apart from rivals in the segment or
segments you have selected?

Value Proposition: Emphasize the unique advantages and worth your services provide
to your intended audience.

Messaging and channels: Tailor your communication and marketing efforts to resonate
with your target segments' preferred channels and language.

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INTERNSHIP SUMMARY
Internship Designation & Duration
 Internship Designation: Data Analyst
 Duration: 500 Hours

Internship – Roles & Responsibilities

 Generated weekly reports detailing key performance indicators, providing
insights to senior management for strategic decision-making.
 Implemented strategies based on findings to enhance customer experience and
operational efficiency.
 Assisted in the development of marketing strategies by providing creative
insights and design solutions.
 Conducted weekly performance reviews to identify trends and areas for
improvement, resulting in a 15% increase in overall productivity.
 Conducted weekly performance reviews to identify trends and areas for
improvement, resulting in a 15% increase in overall productivity.

Internship Daily Routine – Task & Work Process

 Examine the sales managers' and executives' daily productivity trackers.
 Examine the number of reservations made by sales managers and executives.
 Produced the expected visit count for Weekend Forecasting.
 Examined the booking conversion rate in relation to walk-ins.
 Examine the sort of consumer and the pattern of visits.
 Analyzed the responses from social media.
 Examined the administration of social media and online presence i.e. Website
Development.

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Expected Competency (Knowledge & Skill & Attitude)
 Understand the distribution strategy of the company in both consumer and
business markets.
 Learn the purchase orientations of customers.
 Explore the functions like Beat plan and execution. Handling distribution channel
and challenges.
 Explore the calculation of ROI and Sales Forecasting

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PROJECT DESCRIPTION
Introduction: -
The real estate industry is a significant contributor to global wealth generation and
employment, but it has been facing decreased profitability. This issue is attributed to
various interconnected factors, including market dynamics, regulatory challenges,
technology disruption, rising construction costs, shifting consumer preferences, global
events and uncertainties, and financing challenges. Market dynamics and economic
conditions can significantly impact the real estate market, leading to decreased
consumer confidence, rising interest rates, and reduced purchasing power. Regulatory
challenges can pose challenges for developers and investors, as changes in zoning
laws, environmental regulations, or tax policies may increase operational costs and
reduce profit margins. Technological disruptions, such as proptech and virtual reality,
have disrupted traditional real estate practices, making it difficult for companies to adapt
and maintain profitability. Rising construction costs can significantly impact project
budgets, making it difficult for companies to maintain profitability. Shifting consumer
preferences and demographics can also impact demand for specific properties, making
it difficult for companies to align their offerings with current trends. Global events and
uncertainties, such as geopolitical tensions, natural disasters, or global health crises,
can also impact the real estate market, leading to decreased investor confidence and
hindering profitable transactions. Financing challenges can limit real estate companies'
ability to undertake new projects or expand their portfolios, impacting overall profitability.
A comprehensive understanding of these factors is essential to address the challenge of
decreased profitability for real estate companies.

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Background: -
Market saturation, economic downturns, rising interest rates, regulatory changes,
technology upheavals, demographic shifts, environmental concerns, and global events
and uncertainties can all be attributed to decreased profitability in real estate
enterprises. These issues can result in lower property prices, rental rates, and demand
for real estate, reducing profitability and a company's capacity to sustain or increase
profitability.

Real estate firms' lower profitability can be due to a variety of market, economic, and
industrial variables, including essential backdrop features.
 Economic Downturns: Decreased demand during economic downturns can
lead to surplus of properties, affecting profitability.
 Interest Rates: Rising interest rates can increase borrowing costs, pressure
profit margins, and decrease property values.
 Market Saturation: Oversupply in the real estate market can increase
competition, reducing property prices and profitability.
 Regulatory Changes: Changes in government regulations can increase costs
for real estate development and decrease project attractiveness.
 Technology Disruptions: Advancements in technology can disrupt traditional
business models, affecting market share and profitability.
 Global and Local Market Conditions: Economic instability, geopolitical events,
and regional economic performance can influence demand and pricing.
 Changing Consumer Preferences: Shifts in consumer preferences can affect
property demand.
 Environmental and Climate Concerns: Stricter environmental regulations and
emphasis on sustainable buildings can increase development costs and impact
profitability.
 Pandemic Impact: Events like the COVID-19 pandemic can alter demand for
properties, impacting profitability.

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Statement of the problem
The real estate industry's profitability is declining significantly as a result of a variety of
issues such as economic downturns, greater competition, regulatory changes,
technology upheavals, and changing customer preferences. As a result, profit margins
have shrunk, growth possibilities have been restricted, and operational risks have
grown. Addressing this issue is critical because it has the potential to disrupt the
financial viability of real estate operations, affecting stakeholders such as investors,
developers, homeowners, and renters. Understanding the core reasons of declining
profitability and implementing strategic interventions to create resilience, innovation, and
flexibility in the continually altering market landscape are critical for the industry's long-
term health.

Thesis statement:
Economic downturns, market dynamics, regulatory changes, technology upheavals, and
changing customer tastes all provide substantial challenges to the real estate business.
Companies must employ strategic resilience, creative business models, and adaptable
techniques to address this. Addressing the problem necessitates an awareness of the
linked elements that contribute to decreasing earnings, as well as proactive actions
such as financial management, technology integration, and sustainable development
practices. In this volatile business, a proactive reaction is critical for preserving and
revitalizing profitability.

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RESEARCH METHODOLOGY

Primary Research: This study employs primary research methods to gather firsthand
data directly from real estate companies. This will include surveys, interviews, and
observations conducted with key stakeholders such as executives, financial analysts,
and industry experts.

Secondary Research: Additionally, secondary research will be conducted to gather

existing information from published sources such as academic journals, industry
reports, government publications, and financial databases. This will provide a
comprehensive understanding of the current state of profitability in the real estate
sector.

Research Design: Exploratory Research: Initially, exploratory research conducted to

identify key factors contributing to decreased profitability in real estate companies. This
will involve qualitative methods such as interviews and focus groups to explore
emerging trends and issues.

Descriptive Research: Subsequently, descriptive research conducted to quantitatively

analyze the identified factors and their impact on profitability. Surveys and statistical
analysis utilized to gather and interpret numerical data.

Sampling Technique: Stratified Sampling: The research employ stratified sampling to

ensure representation from various segments of the real estate industry. Strata may
include residential, commercial, and industrial sectors, as well as different geographic
regions.

Sample Population: The sample population will consist of real estate companies
operating across different segments and geographical locations. This will include
developers, property managers, real estate investment trusts (REITs), and brokerage
firms.

Sample Frame: The sample frame constructed using industry directories, databases,
and professional networks. It includes a comprehensive list of real estate companies
that meet the criteria for inclusion in the study.

Sample Size: The sample size determined based on statistical considerations to ensure
adequate representation and statistical power. Factors such as confidence level, margin
of error, and population variability will be considered during sample size calculation.

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Sample Location: The research will focus on real estate companies operating in
diverse locations to capture regional variations in profitability trends. Sample locations
will include major urban centers and rural markets.

Conceptual Framework: The conceptual framework will outline the relationships

between various factors influencing profitability in the real estate industry. This includes
market dynamics, economic indicators, regulatory factors, and technological
advancements.

Theoretical Framework: Dependent Variable: Profitability of real estate companies.

Independent Variables: Market saturation, economic uncertainty, rising costs, shifting

consumer preferences, regulatory environment.

Demographical Variables: Company size, geographical location, market segment,

industry experience.

Data Collection Process: Data collection involved a combination of methods including

surveys, interviews, and document analysis. Surveys will be distributed to a sample of
real estate companies to gather quantitative data on financial performance and factors
affecting profitability. Interviews will be conducted with industry experts to gain
qualitative insights and validate findings. Additionally, financial statements, industry
reports, and regulatory filings will be analyzed to supplement primary data collection
efforts.

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Data Analysis
Demographic Profile of the respondents

No of
Age
Respondent

15–24 years 20

25–54 years 15

55–64 years 4

Grand Total 39

Gender Respondent

Female 14

Male 25

Grand Total 39

Occupations Respondents

Doctor 1

Government
Jobs 4

Private Job 10

Retired 2

Self Employed 2

Student 18

Teacher 2

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 Grand Total 39

Income Respondents

₹1.25 lakhs to ₹5 lakhs 9

₹5 lakhs to ₹30 2

₹5 lakhs to ₹30 lakhs 13

Below ₹1.25 lakhs 15

Grand Total 39

4.2 Descriptive Statistics

How would you rate the current real estate market conditions in your area?

In the past year, have you observed any noticeable changes in property prices or rental
costs?

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How would you rate your satisfaction with property management services provided by
real estate companies in your area?

Have you encountered any challenges or issues in your dealings with real estate
companies, such as communication, responsiveness, or transparency?

Are you aware of any recent changes in regulations affecting the real estate market?
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How do you believe the regulatory changes have impacted your experience as a
consumer in the real estate market?

How comfortable are you with using technology in real estate transactions?

Have you encountered any challenges or experienced benefits in using technology for
real estate-related activities?

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To what extent do economic factors, such as job security and income levels,
influence your decisions related to real estate transactions?

Have recent economic conditions affected your willingness or ability to engage in real
estate transactions?

How important is sustainability and energy efficiency in influencing your choice of real
estate properties?

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Would you be willing to pay a premium for a property that incorporates sustainable
and energy-efficient features?

4.3 Impact of Demographic variable on Depended and Independent

Variable

To what extent do economic factors, such as job security and income levels,
influence your decisions related to real estate transactions?

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Income 0 - Neutral 1 - Moderately influential -1 Slightly influential -2 Not influential at all 2 - Very influential Grand Total
₹1.25 lakhs to ₹5 lakhs 3 3 1 1 1 9
₹5 lakhs to ₹30 2 2
₹5 lakhs to ₹30 lakhs 2 6 1 2 2 13
Below ₹1.25 lakhs 5 6 2 2 15
Grand Total 12 15 4 3 5 39
7

4 0 - Neutral
1 - Moderately influential
-1 Slightly influential
3
-2 Not influential at all
2 - Very influential
2

0
₹1.25 lakhs to ₹5 ₹5 lakhs to ₹30 ₹5 lakhs to ₹30 Below ₹1.25 lakhs
lakhs lakhs

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FINDINGS
 Declining Profit Margins: The analysis points to a continuous decline in profit
margins for all the real estate enterprises that are the subject of the study, which
may be brought on by reasons such as dropping property prices, decreased
rental yields, or increased operational expenditures.
 Rising Expenses: According to research, running costs in the real estate
industry, including maintenance, property taxes, insurance premiums, and
utilities, are rising more quickly than revenue growth. This might indicate
problems with cost control and operational effectiveness.
 Occupancy Rates: The data, which shows patterns across a variety of real
estate assets like residential, commercial, and industrial buildings, indicates that
a decline in rental property occupancy rates may influence profitability.
 Market Downturns: Companies' profitability may be impacted by economic
downturns in the real estate market; there is a direct association between
recessions, fewer consumer spending, and falling property demand leading to
lower profitability.
 Leverage and Debt Burden: Real estate businesses that depend mostly on
debt financing may find it challenging to meet their loan payments, particularly
when things are tight financially. Profitability may be impacted by high leverage
and interest costs, particularly when interest rates are rising or the lending
market is becoming more restrictive.
 Asset Impairments: Due to changes in the market or reductions in property
values, real estate firms may experience asset impairments. If they realize
impairment losses on their assets, this can result in lower profitability and
unstable finances.
 Geographic Variations: The research could show whether areas are seeing
more drastic drops in profitability because of regional variables like overstock,
changes in the population, or adjustments to the law.
 Competitive Pressures: The purpose of the analysis is to assess how increased
competition may impact real estate sector rental rates, property values, and profit
margins, which may influence business profitability.
 Customer Preferences: According to the report, the demand for certain real
estate properties may be greatly impacted by changing consumer tastes, such as
the acceptance of alternative housing choices like co-living spaces or flexible
workplace arrangements.

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  Regulatory Environment: Through an examination of tax laws, environmental
regulations, and zoning rules, the analysis investigates the effects of regulatory
changes on real estate investments, including development costs, project
deadlines, and investment returns.

Achieved Competency (Knowledge & Skill & Attitude)

• Contributed to marketing initiatives by creating promotional materials, drafting
property listings, and utilizing digital platforms to showcase available properties
and attract potential buyers or tenants.
• Gained insights into the legal aspects of real estate transactions by reviewing
contracts, agreements, and regulatory requirements related to property transfers,
leases, and titles.
• Analyzed investment opportunities and evaluated potential risks and returns
associated with real estate projects, including residential developments,
commercial properties, and land acquisitions.
• Conducted comprehensive market research to understand trends, demand-
supply dynamics, and pricing strategies in the local real estate market.
• Learned various methods for property valuation, including comparative market
analysis, income approach, and cost approach, to assess the worth of residential
and commercial properties.
• Assisted in building and maintaining client relationships by providing timely
updates, addressing inquiries, and ensuring customer satisfaction throughout the
property buying or selling process.

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CONTRIBUTION TO THE HOST ORGANIZATION

During my internship at SellWorth Realspace LLP, I served as a Data Analysis Intern,

primarily focusing on utilizing basic Excel skills to analyze real estate data. This
summary highlights the key responsibilities undertaken, skills acquired, and
contributions made during my tenure.

Key Responsibilities: Data Compilation: I was responsible for collecting and compiling
real estate data from various sources including databases, spreadsheets, and online
resources. This involved gathering information on property sales, rental rates, market
trends, and competitor analysis.

Data Cleansing: I conducted data cleansing activities to ensure the accuracy and
reliability of the datasets. This included identifying and rectifying errors, removing
duplicates, and standardizing data formats for consistency.

Data Analysis: Using basic Excel functions and formulas, I analyzed the compiled
datasets to derive insights into market dynamics, pricing trends, and customer
preferences. This involved generating pivot tables, charts, and graphs to visualize the
data effectively.

Report Generation: I assisted in the preparation of reports and presentations based on

the analyzed data. These reports were utilized by senior management for strategic
decision-making, business planning, and performance evaluation.

Collaboration: I collaborated with cross-functional teams including sales, marketing,

and finance departments to gather relevant data inputs and incorporate their insights
into the analysis.

Skills Acquired:
Excel Proficiency: Through hands-on experience, I enhanced my proficiency in basic
Excel functions such as VLOOKUP, pivot tables, conditional formatting, and data
validation. These skills were instrumental in conducting data analysis efficiently.

Data Management: I gained expertise in data collection, cleansing, and organization

techniques, which are essential for maintaining data integrity and reliability.

Analytical Skills: The internship honed my analytical abilities, enabling me to interpret

complex datasets, identify patterns, and draw meaningful conclusions to support
decision-making processes.

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Communication: I improved my communication skills by effectively conveying data
insights and analysis findings to stakeholders through reports, presentations, and
visualizations.

Contributions:
Insightful Analysis: My analysis provided valuable insights into market trends,
competitor positioning, and customer preferences, aiding the company in formulating
targeted marketing strategies and identifying growth opportunities.

Process Enhancement: I proposed process improvements in data collection and

analysis methodologies, leading to greater efficiency and accuracy in handling real
estate data.

Team Support: By collaborating closely with team members and offering assistance in
data-related tasks, I contributed to a collaborative work environment and facilitated
knowledge sharing within the organization.

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CONCLUSIONS
The study on decreased profitability in real estate companies provides valuable insights
into the industry's challenges and offers strategies for stakeholders to navigate this
complex landscape. It uses primary and secondary research methods to explore factors
contributing to the decline.

Real Estate Market Dynamics and Challenges

 Market saturation due to oversupply of urban properties.

 Intensified competition causing downward pressure on property prices and rental
rates.
 Global economic uncertainties dampen investor confidence and slow property
transactions.
 Rising costs from escalating construction costs, labor shortages, and regulatory
compliance expenses.
 Shifting consumer preferences, especially among millennials and Generation Z,
reshaping demand for real estate properties.

The research also highlights the importance of strategic initiatives to mitigate the impact
of decreased profitability:

 Diversification: Mitigating market fluctuations and oversupply risks through

portfolio diversification.
 Technology Adoption: Using AI, data analytics, and digital platforms for
operational efficiency and resource optimization.
 Sustainability Integration: Attracting environmentally conscious tenants, reducing
operating costs, and enhancing asset value.
 Strategic Partnerships: Collaborating with financial institutions, tech firms, and
government agencies for access to capital, expertise, and regulatory support.

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SUGGESTIONS
 Multifaceted Causes: Real estate companies often face decreased profitability
due to various internal and external factors such as rising operating expenses,
declining rental yields, market downturns, increased competition, and changing
consumer preferences.
 Impact of Economic Conditions: Economic conditions, such as interest rate
fluctuations, employment levels, and consumer spending, significantly impact
real estate company profitability. Economic downturns and recessions can
reduce demand, lower occupancy rates, and compress profit margins.
 Operational Efficiency Matters: By optimizing asset performance, leveraging
technology, and simplifying processes, real estate firms that place a high priority
on tenant happiness, cost management, and operational efficiency will be better
equipped to withstand market fluctuations and maintain profitability.
 Adaptability and Innovation: To be competitive and spur development, real
estate firms need to embrace innovation and adjust to shifting market conditions.
Emerging technology, digital transformation, and sustainability activities may all
provide to chances for value generation and market distinction.
 Strategic Planning and Risk Management: To negotiate the volatility and
unpredictability of the market, real estate enterprises need to practice strategic
planning and risk management. This entails capital structure optimization,
portfolio diversification, and risk anticipation and mitigation for things like interest
rate swings, legislative changes, and geopolitical unpredictability.
 Collaboration and Partnerships: Resilience and innovation in the real estate
sector may be increased by fostering strong partnerships with key partners,
industry stakeholders, and local communities. These relationships open access
to resources, knowledge, and market insights for sustainable growth.
 Long-Term Vision and Sustainability: Real estate firms that prioritize
sustainability and have a long-term strategy may benefit communities and
stakeholders by fostering inclusive economic growth and social responsibility,
building investor trust, and improving brand reputation.

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Managerial Implication
 Cost Management: Cost management must be given top priority by real estate
managers to lower profitability. This may be achieved by finding inefficiencies,
simplifying processes, cutting costs, and making the best use of available
resources.
 Operational Efficiency: To maximize productivity and minimize waste, real
estate managers should improve operational efficiency, utilize technology, and
streamline processes. This will increase profitability even in the face of economic
difficulties.
 Strategic Asset Management: To increase asset value and profitability, real
estate managers should employ a strategic asset management approach that
addresses maintenance and capital expenditure needs, optimizes leasing
options, and actively manages the portfolio.
 Tenant Relationship Management: To ensure continued occupancy levels and
rental income, real estate managers should place a high priority on tenant
satisfaction, respond quickly to their requirements, and put retention strategies
into place to reduce vacancies and turnover rates.
 Financial Restructuring: To improve liquidity and financial resilience, real
estate enterprises that are facing a decline in profitability may want to take into
account financial restructuring options such as refinancing loans, renegotiating
debt conditions, or looking into equity financing.
 Market Analysis and Adaptation: Real estate managers must closely monitor
market trends and dynamics to identify emerging opportunities and threats. By
conducting thorough market analysis and adapting strategies accordingly,
managers can position their companies to capitalize on market shifts and sustain
profitability in evolving market conditions.
 Innovation and Differentiation: In a competitive market, real estate
management should prioritize innovation and distinction. Some strategies to do
this include investing in technology, providing distinctive services, or
implementing sustainable practices to draw in tenants and investors.
 Risk Management: To safeguard their financial stability and reduce risks to
profitability, real estate companies must practice effective risk management. It is
imperative for managers to recognize and assess significant risks, create all-
encompassing risk management strategies, and implement strong internal
controls.
 Strategic Partnerships and Collaboration: Real estate managers can boost
operational efficiency, access new markets, and diversify revenue streams by
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 forming strategic partnerships with industry stakeholders, investors, and service.

REFERENCES / BIBLIOGRAPHY
 https://ninzio.com/byron/home-main/

 https://maharera.maharashtra.gov.in/

 https://themegenix.net/reland/home-two/

 https://konstruktion.vamtam.com/

 https://ninzio.com/byron/home-main/

 https://www.gera.in/media-center/pune-realty-report

 Wings Of Real Estate Documents

 https://www.euromonitor.com/our-expertise/passport

 https://www.cmie.com/

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Apendix

Questionnaire Design (Developed: Used 7 Step Process)

Research Objectives

The study seeks to understand customers' perspectives on various factors that

contribute to lower profitability in real estate enterprises.

Key Variables

 Real Estate Market Perception

 Quality of Real Estate Services
 Awareness of Regulatory Changes
 Technology in Real Estate Transactions
 Economic Factors Influencing Decisions
Questions:

1. How would you rate the current real estate market conditions in your area?
a) Very favorable
b) Favorable
c) Neutral
d) Unfavorable
e) Very unfavorable
2. In the past year, have you observed any noticeable changes in property prices or rental
costs?
a) Prices have increased
b) Prices have decreased
c) No significant change
3. On a scale of 1-5, with 1 being very dissatisfied and 5 being very satisfied, how would
you rate your satisfaction with property management services provided by real estate
companies in your area?
4. Have you encountered any challenges or issues in your dealings with real estate
companies, such as communication, responsiveness, or transparency?
a) Yes

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b) No
5. Are you aware of any recent changes in regulations affecting the real estate market?
a) Yes
b) No
6. How do you believe the regulatory changes have impacted your experience as a
consumer in the real estate market?
a) Positively
b) Negatively
c) No noticeable impact
7. On a scale of 1-5, with 1 being very uncomfortable and 5 being very comfortable, how
comfortable are you with using technology in real estate transactions?
8. Have you encountered any challenges or experienced benefits in using technology for
real estate-related activities?
a) Yes
b) No
9. To what extent do economic factors, such as job security and income levels, influence
your decisions related to real estate transactions?
a) -2 - Not influential at all
b) -1 - Slightly influential
c) 0 - Neutral
d) 1 - Moderately influential
e) 2 - Very influential
10. Have recent economic conditions affected your willingness or ability to engage in real
estate transactions?
a) Yes
b) No
11. How important is sustainability and energy efficiency in influencing your choice of real
estate properties?
a) 1 - Not important at all
b) 2 - Slightly important
c) 3 - Moderately important

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 d) 4 - Very important
e) 5 - Extremely important
12. Would you be willing to pay a premium for a property that incorporates sustainable and
energy-efficient features?
a) Yes
b) No

Hypothesis
H1= The profitability of real estate companies is positively correlated with unfavorable
market conditions.

H2= Real estate enterprises with greater debt levels are more vulnerable to deviations in
profitability caused by interest rate fluctuations.

H3= Real estate firms are losing money because of rising operational expenditures such
as property management and upkeep.

H4= Good regulatory adaptation leads to long-term profitability.

H5= Real estate firms that effectively utilize property technology (Proptech) outperform
those who reject technological developments.

H6= Economic downturns weaken consumer spending power, which reduces demand
for real estate, affecting firm profitability.

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