“buying behavior and consumer preferences in the residential real estate industry in delhi ncr...

DISSERTATION

On

“Buying behavior and consumer preferences in the Residential Real Estate

industry in Delhi NCR region”.

By

Gaurav Bhardwaj

A0101911222

MBA Class of 2013

Under the Supervision of

Mrs. Vandana Gupta

Assistant Professor

Department of Marketing

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESSS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

ii

DECLARATION

I, Gaurav Bhardwaj , student of Masters of Business Administration from Amity Business

School, Amity University Uttar Pradesh hereby declare that I have completed Dissertation on

„Buying behaviour and consumer preferences in the Residential Real Estate industry in

Delhi NCR region‟.

.

I further declare that the information presented in this project is true and original to the best

of my knowledge.

Date: Gaurav Bhardwaj

Enroll. No: A0101911222

Place: Noida MBA Class of 2013

iii

AMITY UNIVERSITY UTTAR PRADESH

AMITYBUSINESSSCHOOL

CERTIFICATE

I, Vandana Gupta, hereby certify that Gaurav bhardwaj student of Masters of Business

Administration at Amity Business School, Amity University Uttar Pradesh has completed

dissertation on „Buying behaviour and consumer preferences in the Residential Real

Estate industry in Delhi NCR region‟.

Vandana Gupta

(Assistant Professor)

Department of Marketing

iv

ACKNOWLEDGEMENT

The completion of any task depends upon the co-operation, coordination and consolidated efforts of

several resources of knowledge, energy, time and above all the proper guidance of an experienced

person. Therefore I approached this matter of acknowledgement through these lines trying my best to

give full credit where it deserves.

I wish to express my gratitude to those who helped me to complete this report with their knowledge

and expertise. I would like to take this opportunity to express my deep gratitude Ms. Vandana Gupta

(Department of Marketing and Sales) for giving me the opportunity to choose this topic and the

guide me regarding the report.

With great esteem and reverence, I would like to thank all those who have helped me with this report.

I hope that the report will help to assimilate and learn from best practices shared by others in the

industry.

Gaurav Bhardwaj

MBA-General

2011-13

v

Table of Contents

Chapter 1: Introduction .......................................................................................................................... 1

1.1 Housing growth trajectory ...................................................................................................... 2

1.2 Recent industry trends ............................................................................................................ 3

Chapter 2: Literature Review .................................................................................................................. 8

CHAPTER 3 : Research Methodology .................................................................................................... 15

3.1.1 Research title ........................................................................................................................... 15

3.1.2 Objectives of Study .................................................................................................................. 15

3.1.3 Hypothesis................................................................................................................................ 15

3.4 Research Design .......................................................................................................................... 15

3.5 Questionnaire Design .................................................................................................................. 16

3.6 Data Collection ............................................................................................................................ 16

3.7 Sampling Design .......................................................................................................................... 16

3.8 Instruments Used for analysis ..................................................................................................... 17

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION ............................................................................ 18

4.1: Number of People who are permanent residents of Delhi Ncr. ................................................ 18

4.2: Number of people who have bought a property in Delhi NCR .................................................. 19

4.3 : Number of years respondents have been living in Delhi Ncr. .................................................. 20

4.4 : Ranking of localities in order of preference. ............................................................................. 21

4.5: Number of Respondents who have bought properties in Delhi Ncr for the purpose of

Investment. ....................................................................................................................................... 23

4.6 Type of Residential Property Preferred. ..................................................................................... 24

4.7 Preferred Payment Plan. ............................................................................................................. 28

4.8 : Respondent’s awareness of Big real estate developers. .......................................................... 29

4.10 : Real Estate Company Preference ............................................................................................ 31

4.12: Ratings of key factors while making buying decision .............................................................. 33

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4.13 Factors Ratings .......................................................................................................................... 41

4.14: Important sources of Information ........................................................................................... 42

4.15: Income Level of the Respondent. ............................................................................................ 47

Crosstabs: .............................................................................................................................................. 48

Figure 4.16a) : Relationship between the income level of the respondent and payment plan

preferred . ......................................................................................................................................... 48

4.17a) : For buying a property , what payment plan do you prefer ? * Would you like to buy a

property from a renowned real estate company (DLF, unitech etc) at an additional cost , if a

similar property is available at a lesser price? .................................................................................. 50

4.18 Please mark the options from which you take help while making a buying decision?

a)Television * What is your annual Income? .................................................................................... 52

4.19 What type of residential property do you prefer? * What is your annual Income? Cross

tabulation .......................................................................................................................................... 56

4.20 Correlations: .............................................................................................................................. 58

CHAPTER 5 : FINDINGS .......................................................................................................................... 61

CHAPTER 6: CONCLUSION AND RECOMMENDATIONS ......................................................................... 63

6.1Conclusions .................................................................................................................................. 63

6.2 Recommendations ...................................................................................................................... 66

Bibliography .......................................................................................................................................... 68

Annexure ............................................................................................................................................... 70

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List of Figures

Figure 4.1 : Are you a permanent resident of Delhi NCR region? ....................................................... 18

Figure 4.2 : Have you ever bought any property in Delhi NCR? .......................................................... 19

Figure 4.3: For how many years have you been living here? ................................................................ 20

Figure 4.4a) : Compiled ranking of localities(NCR) in order of preference. ........................................ 21

Figure 4.4 b) : Is there any specific reason for giving that locality the highest ranking? ...................... 22

Figure 4.5 : Have you ever bought a residential property in the Delhi NCR region for the purpose of

Investment? ........................................................................................................................................... 23

Figure 4.6 a): What type of residential property do you prefer? ........................................................... 24

Figure 4.6 b): Will your preference in the last question change if the property is being bought for

investment purpose? .............................................................................................................................. 25

Figure 4.6 c): If yes, what will be your preference in that case? ........................................................... 26

Figure 4.6d) : Data Comparison ............................................................................................................ 27

Figure 4.7 : For buying a property , what payment plan do you prefer ? .............................................. 28

Figure 4.8 : Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc.?

.............................................................................................................................................................. 29

Figure 4.9 : Would you like to buy a property from a renowned real estate company (DLF, unitech etc)

at an additional cost , if a similar property is available at a lesser price? ............................................. 30

Figure 4.10 : Please tick the Real estate company‟s name you would prefer buying a Property from. 31

Figure 4.11 : Please tick the options that you take into consideration while choosing a real estate

company to buy a property from. .......................................................................................................... 32

Figure 4.12a): Please rate the following key factors on a scale of 1 to 5 that you take into

consideration while making a buying decision for a residential property:- a)Price .............................. 33

Figure 4.12 b)Privacy ............................................................................................................................ 34

Figure 4.12 c)Location .......................................................................................................................... 35

Figure 4.12 d) Neighborhood ................................................................................................................ 36

Figure 4.12 e) Area/size of the property ............................................................................................... 37

Figure 4.12 f): Parking facility ............................................................................................................... 38

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Figure 4.12 g): Proximity to workplace ................................................................................................. 39

Figure 4.12 h): Interiors ........................................................................................................................ 40

Figure 4.13 : Factors Ratings ................................................................................................................ 41

Figure 4.14 : Source of Information. ..................................................................................................... 46

Figure 4.15 : Income level ..................................................................................................................... 47

Figure 4.16 : Relationship between the income level of the respondent and payment plan preferred .

.............................................................................................................................................................. 48

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List of Tables

Table 4.1 : Are you a permanent resident of Delhi NCR region? ......................................................... 18

Table 4.2 : Have you ever bought any property in Delhi NCR? .......................................................... 19

Table 4.3: For how many years have you been living here? ................................................................ 20

Table 4.4a) : Compiled ranking of localities(NCR) in order of preference. ......................................... 21

Table 4.4 b) : Is there any specific reason for giving that locality the highest ranking? ...................... 22

Table 4.5 : Have you ever bought a residential property in the Delhi NCR region for the purpose of

Investment? ........................................................................................................................................... 23

Table 4.6 a): What type of residential property do you prefer? ............................................................ 24

Table 4.6 b): Will your preference in the last question change if the property is being bought for

investment purpose? .............................................................................................................................. 25

Table 4.6 c): If yes, what will be your preference in that case? ............................................................ 26

Table .6d) : Data Comparison ............................................................................................................... 27

Table 4.7 : For buying a property , what payment plan do you prefer ? ............................................... 28

Table 4.8 : Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc.? 29

Table 4.9 : Would you like to buy a property from a renowned real estate company (DLF, unitech etc)

at an additional cost , if a similar property is available at a lesser price? ............................................. 30

Table 4.10 : Please tick the Real estate company‟s name you would prefer buying a Property from... 31

Table 4.11 : Please tick the options that you take into consideration while choosing a real estate

company to buy a property from. .......................................................................................................... 32

Table 4.12a): Please rate the following key factors on a scale of 1 to 5 that you take into consideration

while making a buying decision for a residential property:- a)Price .................................................... 33

Table 4.12 b)Privacy ............................................................................................................................. 34

Table 4.12 c)Location ........................................................................................................................... 35

Table 4.12 d) Neighborhood ................................................................................................................ 36

Table 4.12 e) Area/size of the property ............................................................................................... 37

Table 4.12 f): Parking facility ................................................................................................................ 38

Table 4.12 g): Proximity to workplace ................................................................................................. 39

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Table 4.12 h): Interiors ......................................................................................................................... 40

Table 4.13 : Factors Ratings ................................................................................................................ 41

Table 4.14 a) : Sources of Information : Newspapers. ......................................................................... 42

Table 4.14 b) : Sources of Information : Television. ............................................................................ 42

Table 4.14 c) : Sources of Information : Radio. .................................................................................... 43

Table 4.14 d) : Sources of Information : Property Sites. ...................................................................... 43

Table 4.14 e) : Sources of Information : Developer’s Site. ................................................................... 43

Table 4.14 f) : Sources of Information : People’s References. ............................................................. 44

Table 4.14 g) : Sources of Information : others. .................................................................................. 45

Table 4.14 h) : Sources of Information : Complied Frequency of Responses. ................................ 46

Table 4.15 : Income level ..................................................................................................................... 47

Table 4.16a) : Relationship between the income level of the respondent and payment plan preferred

. ............................................................................................................................................................. 48

Table 4.16b) : Relationship between the income level of the respondent and payment plan

preferred: Chi Square Test . .................................................................................................................. 48

Table 4.17a) : Relationship between the payment plan and * Would you like to buy a property

from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is

available at a lesser price?

. ............................................................................................................................................................. 54

Table 4.17b) : Relationship between the payment plan and * Would you like to buy a property

from a renowned real estate company (DLF, unitech etc) at an additional cost , if a similar property is

available at a lesser price? (Chi Square test)

. ............................................................................................................................................................. 54

Table 4.18a) Please mark the options from which you take help while making a buying

decision? b)Television * What is your annual Income?..........................................................52


decision? b)Property Sites * What is your annual Income?....................................................53


decision? b)Developer’s Sites* What is your annual Income?................................................54

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decision? b)People’s Reference * What is your annual Income?............................................55

Table 4.19a) What type of residential property do you prefer? * What is your annual Income? Cross

tabulation............................................................................................................................................56

Table 4.19v) What type of residential property do you prefer? * What is your annual Income? Cross

tabulation: Chi Square Test..................................................................................................................57

Table 4.20 : Please rate the following key factors on a scale of 1 to 5 that you take into

consideration while making a buying decision for a residential property……………………………58

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Executive Summary

The real estate sector in India assumed greater prominence with the liberalization of the

economy, as the consequent increase in business opportunities and labour migration led to

rising demand for commercial and housing space. At present, the real estate and construction

sectors are playing a crucial role in the overall development of India‟s core infrastructure.

The real estate industry‟s growth is linked to developments in the retail, hospitality and

entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals,

schools) and information technology (IT)-enabled services (like call centers) etc and vice

versa.The Project is titled „Buying behavior and consumer preferences in the Residential

Real Estate industry in Delhi NCR region‟. The Study is mainly focuses upon identifying

the buying behavior of the customers and their preferences. The main objective of the study

was to know:

To study the set of factors that a consumer takes into consideration while making a

decision of buying a home in Delhi NCR Region.

To find out the effect of brand preference on the buying behaviour of the consumer.

Buying preferences of the consumers for the type of property.

Preferences of consumers for the type of payment plan.

The study covered most of the areas in Delhi NCR including places like Gurgaon, Noida ,

Ghaziabad , Greater noida and Faridabad and most of the leading realtors .The sampling

technique used for this study was convenient sampling and the sample size was 120. A

descriptive study was conducted via questionnaire involving MCQ‟s, Open ended and close

ended questions. The analysis is done with the help of SPSS, and shown with the help of

Graphs, bars, charts and tables.

As a result of this survey, It was fairly concluded Price is the most important factor in

making the buying decision by customers, people prefer Gurgaon the most for buying a

property in NCR also Market Reliability of a Company is the most preferred factor that the

customers look for before buying a property from it. There is also a significant relationship

between the payment plan preferred and the income level of the customer.

1

Chapter 1: Introduction

The real estate sector in India assumed greater prominence with the liberalization of the

economy, as the consequent increase in business opportunities and labour migration led to

rising demand for commercial and housing space. At present, the real estate and construction

sectors are playing a crucial role in the overall development of India‟s core infrastructure.

The real estate industry‟s growth is linked to developments in the retail, hospitality and

entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals,

schools) and information technology (IT)-enabled services (like call centers) etc and vice

versa.

The Indian real estate sector has traditionally been dominated by a number of small regional

players with relatively low levels of expertise and/or financial resources. Historically, the

sector has not benefited from institutional capital; instead, it has traditionally tapped high net-

worth individuals and other informal sources of financing, which has led to low levels of

transparency. This scenario underwent a change with in line with the sector‟s growth, and as

of today, the real estate industry‟s dynamics reflect consumers‟ expectations of higher quality

with India‟s increasing integration with the global economy.

Residential real estate industry has witnessed stupendous growth in the past few years owing

to the following reasons:

• Continuous growth in population

• Migration towards urban areas

• Ample job opportunities in service sectors

• Growing income levels

• Rise in nuclear families

• Easy availability of finance

2

Demand for houses increased considerably whilst supply of houses could not keep pace with

demand thereby leading to a steep rise in residential capital values especially in urban areas.

Broadly, residential real estate industry can be divided into four growth phases, as can be

seen in the chart below:

1.1 Housing growth trajectory

Phase I (2001-2005) was an initial growth phase with stabilizing residential real estate prices

following the global recovery post the “dot com” bust and 9/11 terrorist attacks in New York.

At the same time, there was steady growth in Indian economic activity, noteworthy recovery

in IT/ITES industry, growing urbanization and a rising trend towards nuclear families.

Phase II (2006-2008) was a high growth phase where high demand for residential real estate

led to doubling of housing prices. Demand rapidly increased due to India‟s growing

population, accentuated urbanization, rising disposable incomes, rapidly growing middle

class and youth population, low interest rates, fiscal incentives on interest and principal

payments for housing loans and heightened customer expectations.

Phase III (2009-2010) witnessed substantial slowdown and part recovery in demand because

of the global economic downturn, which led to a decline in affordability and tight liquidity.

The retreat of various real estate investors, accompanied by slowdown in the capital markets,

has resulted in oversupply and falling prices.

Phase IV (2011-2014) is expected to remain a consolidation phase after slowdown. Demand

is expected to remain strong with capital values witnessing modest rise. This period is

expected to witness substantial supply of housing especially in urban areas.

In spite of the stupendous growth witnessed in the past 10 years, substantial housing shortage

is still prevalent in India. Housing shortage in India is estimated at 78.7 million units at the

end of Phase II. The overall housing shortage in India is likely to decline to 75.5 million units

by the end of Phase IV.

3

However, housing shortage in urban areas will continue to rise owing to migration towards

urban areas and iNCReasing trend of nuclear families. Housing shortage in urban areas is

estimated at 19.3 million units at the end of 2008, up from 15.1 million units at the start of

2005. Housing shortage in urban areas is likely to touch a walloping 21.7 million units by the

end of 2014.

Rural areas, on the other hand, will witness a reduction in housing shortage due to migration

and conversion of kutcha houses into pucca houses. The government‟s continuous focus on

improving the housing situation, especially for population below poverty line, under schemes

like Indira Awaas Yojna, Rajeev Gandhi Aawaas Yojna, Two Million Housing Programme,

is expected to reduce housing shortage in rural areas. Rural housing shortage is expected to

decline to 53.8 million units by 2013-14 from 59.4 million units at the end of 2008.

1.2 Recent industry trends

Despite strong fundamentals backing the residential real estate, the segment is highly

influenced by economic cycles.

Owing to global meltdown, the residential real estate market in India too witnessed an

astounding fall in demand and capital values, between first half of 2008 and first half of 2009.

However, the sector experienced a pickup in demand during the second half of 2009 across

major cities mainly attributed to improvement in economy. Residential projects across cities

saw several new mid-income housing projects being launched by developers to attract

potential buyers.

Demand for houses mounted as the global economy improved bringing back financial

confidence to the home buyers along with low interest rates. End-users, who had put their

purchasing plans on hold due to the fall in affordability levels and job-related uncertainties,

started booking houses.

1.2.1 Delhi

An approximate 75% end-user presence makes this a largely end-user driven market.

However, there is a heavy financier presence in this micro market. Across Delhi it has been

observed that the transactions are at rates much higher than the designated circle rates.Circle

rates are the minimum rates for the valuation of land and immovable properties in Delhi.

These rates are taken into consideration for registration of instruments related to land and

4

immovable properties in Delhi by all the registering authorities. Land transactions are

estimated at rates over 10 times of the circle rates in most parts of the capital city.

According to the Delhi Master Plan 2021, 'greater efficiency and benefits through a unified

metro transport authority' are being targeted. Acknowledging the increased vehicle density,

the government is trying to rope in theprivate sector to develop parking facilities through

multi-level and underground parking spaces. It is also planning an integrated multi-modal

public transport system to reduce the pressure of private transport on the road. Cycle tracks,

pedestrian- and disabled-friendly features in the arterial and sub–arterial roads are also being

planned.

1.2.2 Gurgaon:

Gurgaon markets have reached a high level of appreciation. This year launches have been

slow and the transaction volumes have been low. However, over a 4-5 year period the

Gurgaon market will see good appreciation. This will be because of employment

opportunities, heavy investor appetite and a strong broker community presence in this

micromarket. While Golf Course Road (GCR) and Golf Course Road Extension areas are

seeing the launch of a few high end properties and builders are looking at higher margins,

areas like Dwarka Expressway are seeing interest on account of affordability and the bet on

the future infrastructure in that area.

Price Trends in Gurgaon

5

1.2.3 Noida,

Infrastructure issues

The market has ample supply and the demand has moderated. While the fall of Greater Noida

and Noida Extension markets has benefited Noida (rates have moved up marginally in certain

projects), the situation is one of wait and watch. Over a long term horizon, the Noida markets

will see a 10-15% YoY appreciation on the basis of the healthy infrastructure story in Noida

and its heavy end-user base.

Farmer protests over land acquisition in Greater Noida and Noida Extension have slowed

down the market. We see a downside risk in capital value over the one-year horizon due to

land issues and an oversupply situation. However, over the long term this sector will recover

on account of good infrastructure and continued demand from the sub INR 3,000/sq.ft.

category home buyer.

The Gurgaon real estate market falls under the jurisdiction of the Haryana government

whereas the Noida market comes under the purview of Uttar Pradesh. Buyers tend to invest

their money based on the comfort level with the respective governments.

6

Greater Noida and Noida Extension:

The real estate markets in Gurgaon and Noida are driven by very different dynamics;

they are in fact at contrasting ends of the real estate spectrum in certain aspects.

The Haryana government in Gurgaon allows developers to directly acquire land from

farmers. Later, the builder applies to the government for infrastructure support for his project.

So here, acquisition is followed by the completion of the project and subsequently,

infrastructure support from the government.

However, the Uttar Pradesh government in Noida follows a different model. Here, the

government directly acquires land from the farmers, after which it draws a plan in terms of

infrastructure support for the area, and earmarks plots. The last stage involves auctioning the

plots to builders. So, infrastructure support comes before the residential project.

7

Gurgaon's infrastructure issues in terms of water, power and roads are a cause of concern.

The city lacks proper amenities to support the rising new supply. In comparison to Noida, the

degree of planning and road connectivity in Gurgaon appears to be flat. As discussed earlier,

this comes from the model of land acquisition followed by the government. In Noida many of

the erstwhile infrastructure issues have been resolved with better road connectivity, better

water supply in most pockets, well laid out drainage systems, and reduction of load shedding

from 8-10 hours to just 1-2 hours. The Metro has penetrated till sector 50, with the end

station being 'Noida City Centre'.

8

Chapter 2: Literature Review

Mwfeq Haddad (2011) According to the researcher objective of this study is to investigate

the main factors that influencing the customers' buying behavior toward apartment, and tried

to identify the most influencing factors that affect buying. A convenience sample consists of

120 persons who already bought an apartment in different areas in Amman. One sample ttest,

independent sample t-test, and one-way ANOVA were used in testing the hypotheses. This

study found that respondents would significantly adopt the main constructs when buying

residential apartments, including aesthetic, economic, marketing, geographic, and social

constructs. And the study concluded that there were significant differences in decision

making regarding buying residential apartments according to the sample gender and Age.

And there were significant differences in the respondents answer due to age and there were

no significant differences according to the marital status or educational level. Buying an

apartment is one of the most significant economic decisions that people make, and it requires

gathering a lot of information regarding its features (Hua Kiefer, 2007).

The role of marketing is one of the keys in the success of any businesses. This study

concentrates on the factors that affect purchasing of the real estate; this kind of studies has

not much been investigated in the Jordanian market, particularly in the real estate. It is one of

the businesses that depend on many factors for purchasing. From investigations and field

survey,researchers classified the important factors affecting the decision to buy a definite

apartment and they are: Form,Views, Decoration, Entrance, Design, Finishing, Price,

Advertising, Credibility, Reputation, Income, Interest, Apartment Area, Conversion and

Taxes.

Susan L. Nelson (1998) Most real estate study is base on neoclassical economics.

Consumers are expected to make real estate decisions that maximize their utility and wealth

given price and income constraints. Tastes and preferences are taken as given. The outcomes

of consumer actions are used to infer these preferences. The study of real estate would benefit

from an expansion to include consumer behavior concepts from sociology and psychology as

synthesized through marketing. Inclusion of these concepts in real estate education will help

real estate analysts better explain and predict the behavior of decision-makers in real estate

markets. This paper will present a review of the consumer behaviour literature relevant to real

9

estate and suggest how these concepts could expand real estate study. Much of the study of

consumer behavior focuses on consumer choice. Utility theory in economics and attitude

theory in social psychology have strong similarities and constitute a basis for consumer

decision and choice processes. Consumers purchase goods and services for the benefits

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

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

behavior researchers explicitly recognize the impact of situational elements on behavior and

the variance among individuals. Most real estate purchases and leases would be considered

high involvement goods that would require complex decision-making. The three major

comprehensive models of this type of consumer decision making (Engel, Kollat and

Blackwell, 1968; Howard and Sheth, 1969; Nicosa 1966) trace the psychological state and

behavior of individual purchasers from the point at which they perceive a need through the

search for information, evaluation of alternatives, purchase, and final evaluation of the

consequences. The assumption is that a purchase act is preceded by a sequence of mental

information processing. This involves a cognitive function in forming beliefs, an emotional

component in developing positive or negative attitudes, and a reaction through being

motivated to select and buy.

Maria Carolina (2011) Her research work addresses determinants of housing consumer

behavior. This Brazilian work presents the development of a methodology which combines

the examination of housing attributes and behavioral attitudes about residential mobility,

choice and satisfaction. A theoretical revision is made initially considering these three

processes of architecture and socio-demographic literature. The research method is the

multiple case studies. The data had been collected since 2004. About 80 studies had been

carried. A general vision of the study is presented, with description of the sources of the data.

Presenting one of the cases, the work shows how the progression of households through the

stock is influenced by the circumstances that prompt moves, economic resources and family

life cycle stage. For analysis of this concept, a representative project was developed,

considering the notion of parallelism between professional and housing careers, life cycle

events and family financial aspects. The end results might be used by developers authorities

assessing the impacts of environmental characteristics as dissatisfaction causes of residential

mobility. The knowledge of determinants of housing behavior allows information about the

significance of relationships between the environment and human actions, which might be

10

used by planning authorities in the definition of better subsequent built environments. Two

aspects are essential in the present work: conceptual and methodological. The first concerns

to the work‟s goal in uniting the concepts searched in the several literatures that discuss the

consumer behavior theme, adapting them to an unique and enclosing notion and involving the

theme. The second concerns to the goal of proposing a methodology able to investigate the

consumer behavior from this enclosing conceptual notion. The discussion around the

behavior of the habitation demand frequently is restricted to the works that evaluate the

residential satisfaction, generally backed in the Post-Occupational Evaluation methodology,

already broadly spread in the national scenery. However the demand behavior also involves

other aspects, besides the residential satisfaction. It becomes necessary to consider the

behavior in a systemic manner, relating needs, preferences, motivations that generate the

search for a new house and the characteristics that define the family‟s social economic

profile.

Ebrahim Variawa (2010) Marketers increasingly face challenges in trying to understand the

decision-making processes and behaviors of those consumers located at the Bottom of the

Pyramid (BOP). It has been proven that 73% of fast-moving consumer goods (FMCG)

purchases are made at the point-of sale, and product packaging has been found to play a

strategic role in seven of the ten in-store purchase decision criteria. Packaging is, therefore,

an important basis through which companies can differentiate products from the plethora of

competing brands. On average, big retailers carry 50 000 items and the typical shopper passes

300 items per minute. The packaging must, therefore, perform many of the sales tasks,

making an overall favourable brand impression and experience. The research has attempted

to understand the constructs of packaging and brand experience as purchasing decision

criteria for FMCG products. The researcher administered 250 surveys with low-income

consumers in the Star Hyper supermarket in the mining town of Carlton ville. The findings

demonstrated how low-income consumers have an appreciation of all product packaging as

they often re-use it once the product is consumed. Furthermore, lower income consumers

enjoy a greater brand experience with 'premium' product brands when compared to their

brand experience levels with what they perceive to be 'cheaper' brand products. Even though

a statistical weak relationship between product packaging and brand experience was found,

the qualitative findings support the notion of a strong relationship as lower income consumers

11

gain more value/greater brand experience not just out of consuming 'premium' brand

products, but also from the use of the packaging for other needs afterwards.

Feng Xu (2010) In New Zealand, the housing market is composed of distinct communities

with different roles. These are the buyers, the sellers, and intermediaries between buyers and

sellers of real estate. Real estate agents and brokers, as a third party of housing deals, are a

very important intermediary in the New Zealand real estate industry. On the one hand, they

help people to sell the property professionally and efficiently; on the other hand, they help

people find the optimal home for living or property investment and consolidate loans.

According to Gilbert (2002), less than 0.5% of all property sales are made privately, and

around 80% of properties placed on private sale are transferred to real estate agents within

three months. The real estate industry in New Zealand is now a multi-cultural enterprise

composed of diverse ethnicities, due to New Zealand‟s immigration policy. In the last ten

years, the inflow from „non-traditional countries of origin‟ has particularly increased the

number of new settlers from Asian countries (Bascand, 2009, Aug 14). Increasing diversity

means that all parties must come to grips with the challenge of understanding the housing

needs of people from different cultures. The Chinese are the largest Asian ethnic group in

New Zealand and have been so since the nineteenth century (Bell, 2001). As a result, as

confirmed by local media, there is a large intra-Chinese housing trade market within the

Auckland Chinese community. As the housing demand of the Chinese community is a

valuable resource to support the New Zealand real estate industry, it is significant to have a

timely research on the marketing strategies used in that specified housing market. Ultimately,

the stimulus of Chinese buyers in the housing market can enhance a prosperous New Zealand

economy. This thesis examines two groups of real estate intermediaries - Chinese and non-

Chinese – and investigates the role of these people in New Zealand, particularly as it

concerns the principles, behaviours, relationships and practices of Chinese and non-Chinese

real estate personnel vis-à-vis their clients and the mortgage market. In this study, the

research domain 5 of the housing market we are focusing on is the Auckland region, which

includes Auckland City, Manukau City, North Shore City, Waitakere City, Franklin District,

Papakura District, Rodney District, Waiheke and Hauraki Gulf Islands (Housing New

Zealand Corporation, 2005). However, the four main cities, as the metropolitan area, are the

main research regions of this study.

12

Melika Husić-Mehmedović (2010) Real estate property is defined as a financial asset that

brings interest, benefits and encumbrances inherent in the ownership of the land and all

improvements that are permanently related to it. Real estate market is recognized as a market

of the constant rising value, independent of the particular country development. During last

20 years Bosnia and Herzegovina (further B&H) went through the large transitional changes.

Challenges facing today's real estate market in B&H have never been so difficult. Real estate

ownership is an unobtainable goal for most of the employed young people. Main topic of this

paper is decision making process of the new emerging segment called young professionals in

relations to real estate market and understanding their buying behavior. Combining

quantitative and qualitative methods, it analysis the real estate market in Bosnia and

Herzegovina in the period directly influenced by the recent economic crisis. This research is

testing the influence of the specific reference groups (family, friends and experts) of the

young professionals (up to 35), during their real estate purchase. This kind of decision

making is a complex process, but still the most important part of the real estate purchase.

Research has shoved that family and friends have the main influence in the process, however

their importance varies upon their education/age level, family life cycle stage, level of self

esteem and their life style. Findings of the research have great managerial implications in

order to help sellers to develop segment oriented offerings and selling strategy.

Brian A. Glanville (2006) The rapid changes of the last decade, in both real estate markets

and the global economy, have created an interconnected world where barriers of time and

geography have fallen away. Real estate‟s growing place in investment portfolios demands

that any professional dealing with real property be prepared to play on this new field.

International activities offer the Appraisal Institute a strong potential for growth. Such

activities also offer Appraisal Institute members the opportunity to learn firsthand how to do

business abroad and reap the financial benefit of providing services for multinational

clients. Building on its history of leadership in developing and disseminating real estate

valuation theory, the Appraisal Institute is in a position to see that this theory is transferred in

practical ways around the world. The organization‟s core competencies are in high demand

by the international community. By taking the lead to ensure the systematic development of

markets around the world, the organization can realize growth in both membership and

business opportunities for all members.

13

Jonathan Kohn (2007) The US economy experienced excessive demand for housing for

over a decade, causing a housing boom. Consumers went on a spending spree driven by

higher and higher, real and perceived home equity values, as well as equity market increases.

In the US market, “bigger is better” or “as much as one can afford” became the mentality of

home buyers. In addition, consumers were driven to buy houses now to avoid future higher

prices. Interest rates were generally held to historic lows from 1990 to about 2007. For a long

time, the Federal Reserve was praised for helping the financial markets sustain their roles in

the housing markets. Since the housing market crash, beginning about 2006, the Federal

Reserve has been blamed for the housing crisis. This research examined the housing market

boom to determine what factors led to this economic situation.

(KEMENY, 1998) Comparative housing research has become a major ® eld of investigation

in the last two decades, and it is now possible to discern distinct approaches. In this paper we

present an overview of the literature, distinguishing between three dominant perspectives. At

one extreme are particularistic approaches which are conceptually unexplicated and highly

empirical and in which each country is seen as unique. At the other extreme are universalistic

approaches in which all countries are seen as being subjected to the same overriding

imperatives, whether this is „the logic of industrialism‟, capitalist market failures, the

structural drive to increasingly comprehensive welfare states or its opposite, the privatisation

and recommodi® cation of welfare. In between these two extremes are studies which attempt

to develop what might be called „theories of the middle range‟ and to discern typologies of

housing systems.

(PUGH, 2001) In terms of welfare, development, and overall distributional impact, the study

of whole sector housing development is more signiŽ cant than attention to parts of a housing

system. Housing policy development is increasingly taking the more comprehensive

approach. The Ž rst phases of international housing policy, 1972–83, represented in sites and

services (and related in situ slum upgrading) projects, could never become completely

effective. These approaches had only fragmentary relationships to general land policies, to

the development of housing Ž nance systems, and to the broader economic, social and

institutional conditions for enhancing the qualities and supplies of housing. In due time the

theoretical and practical limitations became apparent and various international aid agencies,

14

including the World Bank, adopted broader, more sophisticated thinking in housing, leading

to a quest for whole sector housing development. But in the late 1990s, within managerial

reforms in the World Bank, the specialist housing section was disbanded and the staff

dispersed to other sections. This paper provides an historical explanation for the change,

along with critical commentaries on the potential dilemmas with the modern, more

comprehensive approaches. It is argued that policy and research agendas should be more

evidently based upon understanding of the developmental dialectic between the economic,

the social and the political. The developmental welfare of such a dialectic has authority and

legitimacy from several Nobel prize winners in the 1990s. This paper re•ects upon the

relevance of their theoretical contributions.

(Clapham, 1996) The intention of this review is to examine the nature and dynamics of

housing systems by reviewing research on the relationship between housing markets and the

market economy of which they are part. The example taken here is Britain, which, although

usually categorised as somewhere between a market and a welfare system, has under

continuous right-wing governments since 1979, moved far closer to the ideal type market

housing system in the last decade. However, this move has been problematic in many

respects and an analysis of the impact of the changes shows many problems associated with a

market approach. Many of these problems relate to the speci® c situation in Britain, but

others may reject the more general problems which are inherent in market systems.

15

CHAPTER 3 : Research Methodology

3.1.1 Research title

„Buying behavior and consumer preferences in the Residential Real Estate industry in

Delhi NCR region‟.

3.1.2 Objectives of Study

To study the set of factors that a consumer takes into consideration while making a

decision of buying a home in Delhi NCR Region.

To find out the effect of brand preference on the buying behaviour of the consumer.

Buying preferences of the consumers for the type of property.

Preferences of consumers for the type of payment plan.

3.1.3 Hypothesis

H0: There is not a significant relationship between the type of property preferred and Income

level of the person .

HA: There is a significant relationship between the type of property preferred and Income

level of the person.

H1: There is not a significant relationship between type of payment plan preferred and

income level of the customer.

H2: There is a significant relationship between type of payment plan preferred and income

level of the customer.

3.4 Research Design

The methodological approach to this study is descriptive, because the researcher has

attempted to identify and explain variables that exist in a given situation and to describe the

relationship that exists between these variables.

16

To study the impact of consumer perception, the researcher first carried out a Descriptive

analysis with the help of Questionnaire over 120 respondents. Then to understand the

different perception of people of different areas the researcher has conducted personal

interviews of people from different demographic profiles in order to distinguish among their

thoughts, view towards the Real estate Industry in Delhi/NCR region.

3.5 Questionnaire Design

A structured questionnaire was prepared to get the most efficient and accurate results from

the survey. The research question specifies the information the decision making needs.

3.6 Data Collection

Both Primary and Secondary data was collected during the project.

Primary data was collected through questionnaire filling and interviews. The questionnaire

is designed in structured form and most of the questions were multiple choice questions. And

some open ended questions were also included in the questionnaire. Respondents were asked

to complete 5 point Likert scale in some questions.

Secondary data: The major source of secondary data is:

Internet

Product‟s websites

Articles from marketing magazines

Research papers

Journals

3.7 Sampling Design

There are four steps involve in the sampling design process. These steps are closely

interrelated and relevant to all aspects of the marketing research project. These steps are as

follows:

17

3.7.1 Define the target population

The target population is the collection of elements or objects that possess the

information sought by the researchers and about which the inferences are to be made. The

target population represents the Delhi/NCR regions. The people were from different

professional backgrounds.

3.7.2 Select a sampling technique

The sampling technique used in this project is Convenient Sampling Technique. It is

because equal opportunity should be provided to every kind of people in order to obtain

better result to understand the consumer perception. The selection of sampling units is left

primarily to the interviewer. Often, respondents are selected because they happen to be on

right place at the right time.

3.7.3 Determine of the sample size

Sample size refers to the number of units or respondents to be included in the study.

One of the important considerations in the sample size determination is the sample size used

in the similar studies and the resource constraints. In the study, sample size is influenced by

the target population. So, sample size of 120 customers, to obtain better results for analyzing

the perception of consumers.

3.8 Instruments Used for analysis

The basic instrument used in the research is the structured questionnaire with both open and

close ended questions. Most of the questions are Multiple choice and options are provided. It

is kept so in order to maximize the response of the Respondents.

18

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

4.1: Number of People who are permanent residents of Delhi Ncr.

Table 4.1: Are you a permanent resident of Delhi NCR

region?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 103 85.8 85.8 85.8

No 17 14.2 14.2 100.0

Total 120 100.0 100.0

Figure 4.1: Are you a permanent resident of Delhi NCR region?

Interpretation: The above Figure 4.1 suggests that almost 5/6th of the respondents are permanent

residents of Delhi NCR. That will help the results to be more efficient and accurate.

19

4.2: Number of people who have bought a property in Delhi NCR

Table 4.2: Have you ever bought any property in Delhi NCR?


Cumulative

Percent

Valid Yes 109 90.8 90.8 90.8

No 11 9.2 9.2 100.0

Total 120 100.0 100.0

Figure4. 1 : Have you ever bought any property in Delhi NCR?

Interpretation: In the above pie chart it can be seen that 90.83% of the total respondents

have actually bought a property in Delhi and NCR region.

20

4.3 : Number of years respondents have been living in Delhi Ncr.

Table 4.3 : For how many years have you been living here?


Cumulative

Percent

Valid <5 years 18 15.0 15.0 15.0

5-10 years 18 15.0 15.0 30.0

10-25 years 62 51.7 51.7 81.7

>25 years 22 18.3 18.3 100.0

Total 120 100.0 100.0

Figure 4. 2: For how many years have you been living here?

As seen in the above pie chart, almost half of the Respondents have been staying in Delhi Ncr

for last 10-25 years, on the second place are the ones living in Delhi for more than 25 years in

Delhi Ncr.

21

4.4 : Ranking of localities in order of preference.

Table : 4.4a). : Compiled ranking of localities(NCR) in order of preference.

Rank

1

Rank

2

Rank

3

Rank

4

Rank

5

Faridabad 11 6 33 33 37

Noida 36 37 19 11 17

Gurgaon 41 28 17 20 14

Greater Noida 5 34 28 31 22

Ghaziabad 33 15 17 25 30

Figure 3.4 a): Compiled ranking of localities(NCR) in order of preference.

As seen above, Gurgaon has received maximum number 1st Rank by the respondents. With a

high growth rate and more and more companies are opening their offices in gurgaon. People

tend to prefer gurgaon as its close to their workplace and there is a good availability of

nearby markets, malls, cinema halls , 5 star Hotels which make gurgaon a perfect choice for

property buyers. Noida has got maximum number of Rank 2 as its growing very rapidly and

most of the big realtors are eyeing Noida as a profitable area to invest in.

Faridabad has been given maximum of 3rd

, 4th

and 5th Ranking, closely followed by Greater

Noida for the 3rd

and 4th

Rank . This may be a result of steady developmental growth in

Faridabad and Greater noida these days. Companies are also moving their offices to these

localities as property is comparably cheap as compared to Gurgaon and Noida.

22

Tabel 4.4b) Is there any specific reason for giving that locality the highest ranking?

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 35 29.2 29.2 29.2

No 85 70.8 70.8 100.0

Total 120 100.0 100.0

Figure 4.4b) : Is there any specific reason for giving that locality the highest ranking?

Almost one third of the Respondents have a specific reason for giving the locality the highest

rating in the last part. The main reasons were mainly composed of responses such as good

locality, close to the workplace, scope of high capital appreciation, good development rate,

availability of markets, malls etc affordable price of properties etc.

23

4.5: Number of Respondents who have bought properties in Delhi Ncr for

the purpose of Investment.

Table 4.5: Have you ever bought a residential property in the Delhi NCR region for the

purpose of Investment?


Valid Yes 79 65.8 65.8 65.8

No 41 34.2 34.2 100.0

Total 120 100.0 100.0

Figure 4.5 : Have you ever bought a residential property in the Delhi NCR region for the purpose of Investment?

The above pie chart shows that almost 66% of the Respondents have bought properties for

the purpose of Investment as Real estate is considered a good option to invest in and it gives

good returns in terms of capital appreciation and can also serve the purpose of a regular

Income by Renting and leasing.

24

4.6 Type of Residential Property Preferred.

Table No. 4.6a) : What type of residential property do you prefer?


Valid Residential Plot 12 10.0 10.0 10.0

Independent House 21 17.5 17.5 27.5

Multi-storey apartment 33 27.5 27.5 55.0

Builder floor 27 22.5 22.5 77.5

villa 12 10.0 10.0 87.5

Other 15 12.5 12.5 100.0

Total 120 100.0 100.0

Figure 4.6a) : What type of residential property do you prefer?

In the above figure, its easily seen that with 27.5% multi-storey apartments score the

maximum in terms of preference for the type of property closely followed by Builder floor

with 22.5%. Families these days have a desire to buy a floor so that the whole family could

live together on the same floor as it‟s hard to move up and down in case of properties with

multiple floors. Also, Independent houses and villas are comparably pricier as compared to

multi-storey apartments and builder floors.

25

Table 4.6b) Will your preference in the last question change if the property is being

bought for investment purpose?


Cumulative

Percent

Valid Yes 71 59.2 59.2 59.2

No 49 40.8 40.8 100.0

Total 120 100.0 100.0

Figure 4: Will your preference in the last question change if the property is being bought for investment purpose?

Surprisingly, it‟s seen in the above data that almost 60% of the total respondents would

change their Preference for type of property if the property is being bought for investment

purpose.

26

4.6c) If yes , What will be your preference in that case?

Residential

Plot

Independent

house Multi storey Builder floor Villa others

For Investment 28.14 22.5 25.53 14.08 4.2 5.6

Figure 4.6c ) : If yes, what will be your preference in that case?

In case of buying a property for Investment, a drastic change can be seen in the above data

where Residential plot gets the maximum score with 28.14%, closely followed by multi-

storey apartments with 25.5% and Independent house with 22.5%.

27

Data Comparison

Table 4.6d

Figure 4.6 d) : Data Comparison

In the above Bar graph, it can be seen that the preference for buying a residential plot has

jumped from 10%(Living) to 27.5%(Investment) . Preference for buying and Independent

house have also moved higher from 17.5% to 22.5 %, whereas multi-storey apartments have

gone down a little from 27% to 25.2% .

Residential

Plot

Independent

house

Multi

storey Builder floor Villa others

For living 10 17.5 27.5 22.5 10 12.5

For Investment 28.14 22.5 25.53 14.08 4.2 5.6

28

4.7 Preferred Payment Plan.

Table 4.8: For buying a property , what payment plan do you prefer ?


Cumulative

Percent

Valid Down payment Plan 23 19.2 19.2 19.2

Flexi Plan 40 33.3 33.3 52.5

Construction linked plan 57 47.5 47.5 100.0

Total 120 100.0 100.0

Figure 4.7): For buying a property , what payment plan do you prefer ?

Its clearly seen above that almost half of the Respondents prefer to buy a property with the

construction linked plan where the payment is made in instalments according to the progress

in construction of the property. 33.3% People prefer the flexi plan which is a mix of

construction linked and down payment plan. Down payment plan gets the lowest preference

with 19.1%.

29

4.8 : Respondent‟s awareness of Big real estate developers.

Table 4.8 Have you ever heard of Big real estate Developers such as DLF, Unitech,

Amrapali etc. ?


Cumulative

Percent

Valid Yes 104 86.7 86.7 86.7

No 16 13.3 13.3 100.0

Total 120 100.0 100.0

Figure4.8: Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc.?

It‟s seen above that a very high percentage (86.67%) of Respondents have heard about the

renowned real estate developers such as DLF, Unitech ,Amrapali etc.

30

Figure4.9 : Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an additional cost ,

if a similar property is available at a lesser price?

From the above data it can be interpreted that people do have a brand preference in the real

estate Industry as more than half i.e. 57.5% Respondents are ready to pay an additional cost

to buy a property from a renowned real estate company such as DLF, Unitech etc.

Table 4.9 : Would you like to buy a property from a renowned real estate

company (DLF, unitech etc) at an additional cost , if a similar property is available

at a lesser price?


Cumulative

Percent

Valid Yes 69 57.5 57.5 57.5

No 51 42.5 42.5 100.0

Total 120 100.0 100.0

31

4.10 : Real Estate Company Preference

Table 4.10 : Please tick the Real estate company‟s name you would prefer buying a

Property from.


Cumulative

Percent

Valid DLF 42 35.0 35.0 35.0

Unitech 23 19.2 19.2 54.2

Supertech 18 15.0 15.0 69.2

Amrapali 5 4.2 4.2 73.3

BPTP 11 9.2 9.2 82.5

Emaar MGF 11 9.2 9.2 91.7

Ansal API 10 8.3 8.3 100.0

Total 120 100.0 100.0

Figure 4.10 : Please tick the Real estate company‟s name you would prefer buying a Property from.

Dlf has got the maximum preference for buying a property from with 35% i.e more than 1/3rd

of the sample,followed by unitech with 19.17% and Supertech with 15% preference.

32

Table 4.11 Please tick the options that you take into consideration while choosing a real estate company to buy a

property from :-


Valid Market Reliability 48 40.0 40.0 40.0

Financial Stability 23 19.2 19.2 59.2

Word of Mouth 6 5.0 5.0 64.2

Customer Service 17 14.2 14.2 78.3

Earlier completed Projects 15 12.5 12.5 90.8

Any other 11 9.2 9.2 100.0

Total 120 100.0 100.0

Figure 4.11: Please tick the options that you take into consideration while choosing a real estate company to buy a property

from.

Most people choose market reliability(40%) as the main consideration before buying a

property from a real estate company followed by , financial stability with 19.17% , customer

service with 14.17% and success of earlier completed projects with 12.5% .

33

4.12: Ratings of key factors while making buying decision

Table 4.12a) : Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making

a buying decision for a residential property:- a)Price


Valid Least Important 17 14.2 14.2 14.2

Somewhat Important 22 18.3 18.3 32.5

Neutral 11 9.2 9.2 41.7

Important 28 23.3 23.3 65.0

Most Important 42 35.0 35.0 100.0

Total 120 100.0 100.0

Figure 4.12a): Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a

buying decision for a residential property:- a)Price

Almost 35% respondents have given Price the most Important rating, that means price is the

most crucial variable which highly affects the buying decision of the buyer.

34

Table 4.13b : Please rate the following key factors on a scale of 1 to 5 that you take into

consideration while making a buying decision for a residential property:- b)Privacy


Cumulative

Percent



Neutral 23 19.2 19.2 57.5

Important 33 27.5 27.5 85.0

Most Important 18 15.0 15.0 100.0

Total 120 100.0 100.0

Figure 4.12 b) Privacy

Privacy gets the maximum rating as Important with 27.5%.

35

Table 4.12 c) : Please rate the following key factors on a scale of 1 to 5 that

you take into consideration while making a buying decision for a

residential property:- c)Location


Cumulative

Percent



Neutral 11 9.2 9.2 46.7

Important 40 33.3 33.3 80.0

Most Important 24 20.0 20.0 100.0

Total 120 100.0 100.0

Figure 5 : c) Location

Location also gets the maximum rating as Important with 33.33% , followed by most

Important with 20% .

36

Table 4.12 d :Please rate the following key factors on a scale of 1 to 5 that


residential property:- d)Neighbourhood


Cumulative

Percent



Neutral 35 29.2 29.2 66.7

Important 23 19.2 19.2 85.8

Most Important 17 14.2 14.2 100.0

Total 120 100.0 100.0

Figure 4.12 d) : Neighborhood

37

Table 4.12e :Please rate the following key factors on a scale of 1 to 5

that you take into consideration while making a buying decision for a

residential property:- e)Area/size of the property


Cumulative

Percent



Neutral 10 8.3 8.3 55.0

Important 36 30.0 30.0 85.0

Most Important 18 15.0 15.0 100.0

Total 120 100.0 100.0

Figure 4.12e) : Area/size of the property

Area/size of a property gets maximum rating as least important with 33.33%.

38

Table 4.13 f) : Please rate the following key factors on a scale of 1 to 5 that


residential property:- f) Parking facility


Cumulative

Percent



Neutral 22 18.3 18.3 61.7

Important 29 24.2 24.2 85.8

Most Important 17 14.2 14.2 100.0

Total 120 100.0 100.0

Figure 4.12 f) : Parking facility

Parking facility gets equal ratings of Somewhat important and important with 24.17%.

39

Figure 4.13 g) : Please rate the following key factors on a scale of 1 to 5

that you take into consideration while making a buying decision for a

residential property:- g) Proximity to workplace


Cumulative

Percent



Neutral 24 20.0 20.0 52.5

Important 22 18.3 18.3 70.8

Most Important 35 29.2 29.2 100.0

Total 120 100.0 100.0

Figure 4.12 g) : Proximity to workplace

Proximity to workplace also gets the maximum rating of most important with 29.17%.

40

Table 4.13 h) :Please rate the following key factors on a scale of 1 to 5 that


residential property:- h) Interiors


Cumulative

Percent



Neutral 23 19.2 19.2 67.5

Important 28 23.3 23.3 90.8

Most Important 11 9.2 9.2 100.0

Total 120 100.0 100.0

Figure 4.12 h): Interiors

Interiors get maximum rating as somewhat important with 28.5%.

41

4.13 Factors Ratings

Figure 4.13: Factors Ratings

Least important is the area of the property

Somewhat important are the interiors of the property

Respondents are neutral to the neighbourhood

Important is the location

Most important is the price of the property.

Table

No.4.13 Price privacy location neighbourhood

area/size of

property parking

proximity to

workplace interiors

Least

Important

17 16 22 28 40 23 17 17

Somewhat

Important

22 30 23 17 16 29 22 41

Neutral 11 23 11 35 10 22 24 23

Important 28 33 40 23 36 29 22 28

Most

Important

42 18 24 17 18 17 35 11

42

4.14: Important sources of Information

Table 4.14 a) : Please mark the options from which you take help while making a buying

decision? a)Newspapers


Cumulative

Percent

Valid check 74 61.2 61.7 61.7

unchek 46 38.0 38.3 100.0

Total 120 99.2 100.0

Missing System 1 .8

Total 121 100.0

b)Television

Table 4.14 b) Please mark the options from which you take help while making a buying

decision? b)Television


Cumulative

Percent

Valid check 68 56.2 56.7 56.7

unchek 52 43.0 43.3 100.0

Total 120 99.2 100.0

Missing System 1 .8

Total 121 100.0

43

c)Radio

Table 4.14 c Please mark the options from which you take help while making a buying

decision? c)Radio


Cumulative

Percent

Valid check 69 57.0 57.5 57.5

unchek 51 42.1 42.5 100.0

Total 120 99.2 100.0

Missing System 1 .8

Total 121 100.0

d) Property sites

Table 4.14 d : Please mark the options from which you take help

while making a buying decision? d)Property sites(Makaan.com,99

acres.com)


Cumulative

Percent

Valid Check 79 65.3 65.8 65.8

Unchek 41 33.9 34.2 100.0

Total 120 99.2 100.0

Missing System 1 .8

Total 121 100.0

44

e) Developers sites

Table 4.14 e: Please mark the options from which you take help

while making a buying decision? e) Developer's Site


Cumulative

Percent

Valid check 78 64.5 65.0 65.0

unchek 42 34.7 35.0 100.0

Total 120 99.2 100.0

Missing System 1 .8

Total 121 100.0

f) Perople‟s references

Table 4.14 f : Please mark the options from which you take help

while making a buying decision? f) People's References


Cumulative

Percent

Valid check 62 51.2 51.7 51.7

unchek 58 47.9 48.3 100.0

Total 120 99.2 100.0

Missing System 1 .8

Total 121 100.0

45

g) Others

Table 4.14 g : Please mark the options from which you take help

while making a buying decision? g) Others


Cumulative

Percent

Valid check 20 16.5 16.7 16.7

unchek 100 82.6 83.3 100.0

Total 120 99.2 100.0

Missing System 1 .8

Total 121 100.0

46

Table 4.14 h): Complied Frequency of Responses

Figure 4.14 h): Source of Information.

From the compiled data for the sources of information , it can be seen that Property sites(79)

are the most preferred source of information , very closely followed by developer‟s site(78)

and newspaper (74) .

Newspapers Television Radio

Property

sites

Developer'

s site

People's

references

Other

s

Source of

Information 74 68 69 79 78 62 20

47

4.15: Income Level of the Respondent.

Table 4.15 : What is your annual Income?


Cumulative

Percent

Valid <10 Lakhs 30 25.0 25.0 25.0

10-25 lakhs 35 29.2 29.2 54.2

25-50 lakhs 24 20.0 20.0 74.2

>50 lakhs 31 25.8 25.8 100.0

Total 120 100.0 100.0

Figure 4.15 : Income level

29.17% of the total respondents are from 10-25 lakhs annual income level group , closely

followed by 25-50 lakhs income group .

48

Crosstabs:

Figure 4.16a) : Relationship between the income level of the respondent and payment plan preferred .

Interpretation: In the above table 4.16 we can see that Respondents who are having an

annual income of less than 25 lakhs are likely to choose Construction linked payment plan,

whereas in case of Respondents in the 25-50 lakhs annual income level are likely to go for

Flexi payment plan and Respondents with more than 50 lakhs annual income preferred the

Down payment Plan.

Crosstab

Count 4.16: Relationship between the income level of the respondent and payment

plan preferred.

Table No: 4.16a) What is your annual Income?

Total <10 Lakhs 10-25 lakhs 25-50 lakhs >50 lakhs

For buying a property , what

payment plan do you prefer ?

Down payment Plan 5 1 2 15 23

Flexi Plan 9 15 12 4 40

Construction linked plan 16 19 10 12 57

Total 30 35 24 31 120

49

Table 4.16b) Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 12.795a 6 .046

Likelihood Ratio 15.254 6 .018

Linear-by-Linear Association 3.437 1 .064

N of Valid Cases 21

a. 12 cells (100.0%) have expected count less than 5. The minimum expected

count is .76.

Significance level is less than .05 that means there is a significant relationship between

the income level of the respondent and payment plan preferred. So, the null hypothesis

is rejected as P-value is less than .05

50

4.17a) : For buying a property , what payment plan do you prefer ? *

Would you like to buy a property from a renowned real estate company

(DLF, unitech etc) at an additional cost , if a similar property is available at

a lesser price?

Table 4.17a) Crosstab

Would you like to buy a property from

a renowned real estate company (DLF,

unitech etc) at an additional cost , if a

similar property is available at a lesser

price?

Total Yes No

For buying a property , what

payment plan do you prefer ?

Down payment Plan 6 17 23

Flexi Plan 17 23 40

Construction linked plan 46 11 57

Total 69 51 120

The above data clearly suggests that people who prefer the Down payment plan are

likely not to pay additional cost to buy a property from a renowned real estate

company (DLF, Unitech etc) and same is the case with flexi plan but people preferring

the construction linked plan are likely to go for a brand and ready to pay any

additional cost for buying the property.

51

Chi-Square Tests

Table No 4.17b) Value df

Asymp. Sig. (2-

sided)




N of Valid Cases 120

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is

9.78.


the Brand preference of the respondent and payment plan preferred .

52

4.18 Please mark the options from which you take help while making a

buying decision? a)Television * What is your annual Income?

Crosstab

Count

Table No . 4.18a) What is your annual Income?


Please mark the options from

which you take help while

making a buying decision?

b)Television

check 24 20 14 10 68

unchek 6 15 10 21 52

Total 30 35 24 31 120

The above data can be interpreted as the people who use Television as the source of gaining

information regarding the real estate industry are from less than 10 lakhs annual income level

group.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)






10.40.


the Television-Source of Information and Income level of the person .

53

4.18) Please mark the options from which you take help while making a buying

decision? b)Property sites(Makaan.com,99 acres.com) * What is your annual

Income?

Crosstab

Count

Table No 4.18b) What is your annual Income?




making a buying decision?

d)Property sites(Makaan.com,99

acres.com)

check 23 28 7 21 79

unchek 7 7 17 10 41

Total 30 35 24 31 120

The above data can be interpreted as the people who use Property sites as the source of

gaining information regarding the real estate industry are from 10-25 lakhs annual income

level group.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)






8.20.


the Property sites-Source of Information and Income level of the person .

54

4.18c) Please mark the options from which you take help while making a buying

decision? c) Developer's Site * What is your annual Income?

Crosstab

Count

Table No. 4.18c) What is your annual Income?




making a buying decision? e)

Developer's Site

check 25 23 11 19 78

unchek 5 12 13 12 42

Total 30 35 24 31 120

The above data can be interpreted as the people who use Developer‟s sites as the source of

gaining information regarding the real estate industry are from less than 10 lakhs annual

income level group.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)






8.40.


the Developer‟s sites-Source of Information and Income level of the person .

55

4.18d) Please mark the options from which you take help while making a buying

decision? d) People's References * What is your annual Income?

Crosstab

Count

What is your annual Income?

Total Table No 4.18d) <10 Lakhs 10-25 lakhs 25-50 lakhs >50 lakhs



making a buying decision? f)

People's References

check 19 15 17 11 62

unchek 11 20 7 20 58

Total 30 35 24 31 120

The above data can be interpreted as the people who use People‟s references as the source of

gaining information regarding the real estate industry are from less than 10 lakhs annual

income level group.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)






11.60.

56


the People‟s References-Source of Information and Income level of the person .

In the above table, its clearly suggested that people who are in the income level of less than

10 lakhs are likely to prefer Multi-storey apartments , people who are in the income level

group of 10-25 lakhs are likely to go for either independent house or multi-storey apartment,

in case of people from 25-50 lakhs income level group are likely to go for other type of

properties such as serviced apartments or studio apartments , in case of people from more

than 50 lakhs income level group are likely to go for buying a villa.

4.19 What type of residential property do you prefer? * What is your annual Income?

Cross tabulation

Table no 4.19a)

What is your annual Income?


What type of residential

property do you prefer?

Residential Plot 5 5 0 2 12

Independent House 5 9 3 4 21

Multi-storey apartment 9 9 4 8 33

Builder floor 8 7 6 6 27

villa 3 0 1 11 12

other 0 5 10 0 15

Total 30 35 24 31 120

57

Chi-Square Tests

Table No. 4.19b) Value df

Asymp. Sig. (2-

sided)





a. 13 cells (54.2%) have expected count less than 5. The minimum expected

count is 2.40.


the type of property preferred and Income level of the person. So, the null hypothesis is

rejected as P-value is less than .05

58

4.20 Correlations:

Table 4.20 : Please rate the following key factors on a scale of 1 to 5 that you take into

consideration while making a buying decision for a residential property.

a)Price b)Privacy c)Location d)Neighbourhood

e)Area/

size of

the

propert

y

f) Parking

facility

g)

Proximity

to

workplace

h)

Interiors

Please rate the following key

factors on a scale of 1 to 5

that you take into

consideration while making a

buying decision for a

residential property:- a)Price

Pearson

Correlation

1 -.234** .597** .313** -.107 .003 .193* -.104

Sig. (2-

tailed)

.010 .000 .001 .245 .978 .035 .256

N 120 120 120 120 120 120 120 120



that you take into



residential property:-

b)Privacy

Pearson

Correlation

-.234** 1 -.042 -.452** -.113 -.006 -.138 .088

Sig. (2-

tailed)

.010

.649 .000 .219 .946 .134 .339

N 120 120 120 120 120 120 120 120



that you take into




c)Location

Pearson

Correlation

.597** -.042 1 .338** -.318** -.078 -.084 .055

Sig. (2-

tailed)

.000 .649

.000 .000 .398 .363 .551

N 120 120 120 120 120 120 120 120



that you take into




d)Neighbourhood

Pearson

Correlation

.313** -.452** .338** 1 -.175 -.546** -.092 -.155

Sig. (2-

tailed)

.001 .000 .000

.056 .000 .315 .091

N 120 120 120 120 120 120 120 120



that you take into




Pearson

Correlation

-.107 -.113 -.318** -.175 1 -.164 .228* -.090

Sig. (2-

tailed)

.245 .219 .000 .056

.073 .012 .327

N 120 120 120 120 120 120 120 120

59

e)Area/size of the property



that you take into



residential property:- f)

Parking facility

Pearson

Correlation

.003 -.006 -.078 -.546** -.164 1 -.024 .356**

Sig. (2-

tailed)

.978 .946 .398 .000 .073

.798 .000

N 120 120 120 120 120 120 120 120



that you take into



residential property:- g)

Proximity to workplace

Pearson

Correlation

.193* -.138 -.084 -.092 .228* -.024 1 -.148

Sig. (2-

tailed)

.035 .134 .363 .315 .012 .798

.106

N 120 120 120 120 120 120 120 120



that you take into



residential property:- h)

Interiors

Pearson

Correlation

-.104 .088 .055 -.155 -.090 .356** -.148 1

Sig. (2-

tailed)

.256 .339 .551 .091 .327 .000 .106

N 120 120 120 120 120 120 120 120

**. Correlation is significant at the 0.01 level (2-tailed).

*.Correlation is significant at the 0.05 level (2-tailed).

In the above correlation table 4.20, it‟s showing the correlation between various factors

affecting the buying decision for a property by a customer. In the first row its clearly seen

that Price is having a negative correlation (.010) with privacy (-.234), that means a person

rating price as most important factor is likely to rate privacy as least important or somewhat

important. It also shows a positive correlation between price and location (.597) that means a

person rating price as most important factor would most probably rate location as most

important as well, price also has a positive correlation with neighborhood (.313) and a

negative correlation with the interiors (-.256).

Coming to the second row, the privacy factor has a negative correlation with price (-.234) as

discussed earlier. Privacy also shows a very strong negative correlation with neighborhood (-

.452) that means a person who considers privacy as the most important factor while making a

buying decision for a property would consider neighborhood as the least important factor.

In the third row, Location shows a very strong positive correlation with price (.597) as

already discussed above, it also shows a positive correlation with the neighborhood (.338) , a

negative correlation is found in relation with the area or size of the property (-.318) that

means that a person preferring a good location would be happy to forgo the big size of the

property.

60

In the fourth row, Neighborhood is having a very strong positive correlation with the price

(.597) as discussed earlier in the first paragraph, it also shows a negative correlation with the

privacy factor (-.452) , a positive correlation with location (.338). Neighborhood also has a

strong negative correlation with the parking facility (-.546) that means a person who prefers

neighborhood of a property is likely to forgo the parking facility.

In the fifth row, area/size of the property is having a strong negative correlation with the location

factor (-.318) as already discussed above. It also shows a positive correlation with the proximity to

workplace (.228).

In the sixth row, Parking facility shows a negative correlation with the neighborhood factor (-.546)

and also shows a positive correlation with the interiors. A person who considers parking facility as the

most important fact is likely to consider the interiors of the house as the most important factor as well.

In the seventh row, Proximity to workplace is in positive correlation with the price (as discussed

above), it also shows a positive correlation with the area/size of the property (.228)

In the last row, Interiors show a positive correlation with the parking facility factor (.356) as already

discussed in the paragraph 6.

61

CHAPTER 5 : FINDINGS

1. 85.83% of the respondents are permanent residents of Delhi NCR.

2. 90.83% of the respondents have bought properties in Delhi Ncr region.

3. 51.67% of the respondents have been living in delhi Ncr from 10-25 years, 15% from

5- 10 years and 15% from less than 5 years and 18.33% from more than 25 years.

4. Respondents have given no.1 rank to Gurgaon in terms of preference for buying

property, because of the recent developments and high growth rate. Noida have got

the second rank as its also reaching to the level of gurgaon , more and more offices

are now being operated in noida and big realtors are now eyeing Noida to invest in .

5. 65.83% of the respondents have bought a residential property in the Delhi NCR

region for the purpose of Investment.

6. 27.5% of the respondents prefer buying Multi-storey apartments, 22.5% prefer to buy

Builder floors, 17.5% of the respondents prefer buying Independent house and rest

32.5% composed of the others.

7. 59.17% of the respondents have said that they would change their preference made in

the last question if the property is being bought for Investment purpose.

8. In case of buying property for Investment purpose, 28.14% people would prefer

buying Residential plot, 22.5% would prefer Independent house ,25.3% would prefer

Multi-storey apartments and rest would go for other type of properties.

9. Residential plot jumped from 10% to 27.5% in case of investment purpose,

independent house moved from 17.5% to 22.5%, multi-storey fell from 27% to

25.2%.

10. 47.50% of respondents prefer the construction linked plan, 33.33% prefer flexi plan

and 19.17% prefer the Down payment plan.

11. 86.66% of the respondents have heard of Developers such as DLF,Unitech,Amrapali

etc.

12. 57.5% Respondents are ready to pay an additional cost to buy a property from a

renowned real estate company such as DLF, Unitech etc.

62

13. Dlf has got the maximum preference for buying a property from with 35% i.e more

than 1/3rd

of the sample, followed by unitech with 19.17% and Supertech with 15%

preference.

14. 40% of the respondents choose market reliability while making a buying decision,

19.17% would choose financial stability, customer service 14.17% and earlier

completed projects 12.5%.

15. Price is the most important factor while making a buying decision, Interiors is also

somewhat important.

16. Property sites(79) are the most preferred source of information , very closely followed

by developer‟s site(78) and newspaper (74) .

17. 29.17% of the total respondents are from 10-25 lakhs annual income level group ,

closely followed by 25-50 lakhs income group.

18. Price is having a negative correlation (.010) with privacy (-.234), It also shows a

positive correlation between price and location (.597) also has a positive correlation

with neighborhood (.313) and a negative correlation with the interiors (-.256).

19. Privacy shows a very strong correlation with neighborhood (-.452), location shows a

positive correlation with the neighborhood (.338), a negative correlation is found in

relation with the area or size of the property (-.318).

20. Neighborhood also has a strong negative correlation with the parking facility (-.546).

Area/size of the property shows a positive correlation with the proximity to workplace

(.228) , Parking facility shows a positive correlation with the interiors

63

CHAPTER 6: CONCLUSION AND RECOMMENDATIONS

6.1Conclusions

1. There is a significant increase in people coming from different states and buying

residential properties in Delhi and NCR region as these areas are now the hub of

Multinational corps.

2. Gurgaon is the most preferred locality in NCR region in terms of preference of the

customers mainly because of high growth rate and more and more companies are

opening their offices in gurgaon. People tend to prefer gurgaon as its close to their

workplace and there is a good availability of nearby markets, malls, cinema halls ,

5 star Hotels which make gurgaon a perfect choice for property buyers.

Noida being the second most preferred locality for the customers in terms of

buying a house is also climbing the ladder very quickly, the growth rate is rising

and most of the big realtors are eyeing Noida as a profitable area to invest in.

3. There is a significant increase in the people who buy properties for the purpose of

Investment as as Real estate is considered a good option to invest in and it gives

good returns in terms of capital appreciation and can also serve the purpose of a

Regular Income by Renting and leasing.

4. Multi-storey Apartments is the most preferred type of property, closely followed

by builder floors. Families these days have a desire to buy a floor so that the

whole family could live together on the same floor as it‟s hard to move up and

down in case of properties with multiple floors. Also, Independent houses and

villas are comparably pricier as compared to multi-storey apartments and builder

floors which are more affordable.

5. More than half of the people change their preference of property type when the

buying decision is for the purpose of Investment. For investment purpose, people

tend to prefer residential plots and Multi storey apartments.

6. Construction linked payment plan is the most favourite among the customers

because then the customer is having time to arrange funds in between the

instalment dates. Flexi plan is the second most preferred payment plan followed

by the down payment plan where the whole payment is usually made within 2-3

months.

64

7. Nowadays, People are more aware of Brands such as DLF, Unitech, Amrapali

group etc in the Real Estate Industry. Customers are also ready to pay an

additional cost to buy from such Renowned real estate developers.

8. DLF is the most preferred real estate company because of its trust and long

existence in the Industry. Unitech is second and is closely competing with the

DLF. Supertech is third in the list, followed by BPTP , Emaar MGF,Ansal API

and Amrapali.

9. Market Reliability of a Company is the most preferred factor that the customers

look for before buying a property from it . Financial stability is the second in the

list, followed by customer service and earlier completed projects.

10. Price is the most important factor in making the buying decision because in India,

customers are very price sensitive and a small variation in price can lead to great

changes in demand. Location is also an important factor.

11. As customers are now more educated and have access to the internet, the property

sites such as Makaan.com, 99acres.com or magicbricks.com are the most used

source to gather information regarding the real estate in Delhi Ncr. The second

source of information is the Developer‟s site, followed by newspapers, radio,

television etc.

12. There exists a significant relationship between the income level of the customer

and the payment plan preferred. Clearly, with the help of the survey we can

conclude that the customers having an annual income of more than 50 lacs prefer

the Down payment plan as they are having sufficient funds to purchase the

property in one go, whereas customers in the less than 10 lacs income level prefer

the construction linked plan as the payment is made in instalments.

13. People who prefer the Down payment plan are likely not to pay additional cost to

buy a property from a renowned real estate company (DLF, Unitech etc) and same

is the case with flexi plan but people preferring the construction linked plan are

likely to go for a brand and ready to pay any additional cost for buying the

property.

65

14. There is also a significant relationship between the Source of information

gathering and the annual Income on the customer. Customers who prefer to gather

information through television are from less than 10 lacs annual income group and

customers who take help of property sites are from the 10-25 lacs annual income

group.

15. People who are in less than 10 lacs annual income level prefer buying multi-storey

apartments, people in 25-50 lacs income group prefer buying other type of

properties such as serviced apartments and studio apartments and people with

more than 50 lacs annual income prefer buying villas and multi-storey apartments.

16. Price is having a negative correlation with privacy that means a person rating

price as most important factor is likely to rate privacy as least important or

somewhat important. It also shows a positive correlation between price and

location that means a person rating price as most important factor would most

probably rate location as most important as well, price also has a positive

correlation with neighbourhood and a negative correlation with the interiors .

17. The privacy factor has a negative correlation with neighbourhood that means a

person who considers privacy as the most important factor while making a buying

decision for a property would consider neighborhood as the least important factor.

18. Location shows a positive correlation with the neighbourhood, a negative

correlation is found in relation with the area or size of the property that means that

a person preferring a good location would be happy to forgo the big size of the

property.

19. Neighbourhood has a strong negative correlation with the parking facility that

means a person who prefers neighborhood of a property is likely to forgo the

parking facility.

20. Area/size of the property is having a positive correlation with the proximity to workplace.

Parking Facility shows a positive correlation with the interiors. A person who considers

parking facility as the most important fact is likely to consider the interiors of the house

as the most important factor as well.

66

6.2 Recommendations

1. As there is a significant increase in people coming from different states and buying

residential properties in Delhi and NCR region as these areas are now the hub of

Multinational corps. The real estate developers should look to focus on the residential

areas near the business parks and corporate offices as people do tend to prefer

locations which are in close proximity to their workplace.

2. Gurgaon is the most preferred locality in NCR region in terms of preference of the

customers mainly because of high growth rate and more and more companies are

opening their offices in Gurgaon. The realtors should mainly focus upon investing in

Gurgaon and Noida more as there is a scope for a high property demand.

3. There is a significant increase in the people who buy properties for the purpose of

Investment as as Real estate is considered a good option to invest in and it gives good

returns in terms of capital appreciation and can also serve the purpose of a

Regular Income by Renting and leasing.

4. Multi-storey Apartments is the most preferred type of property, closely followed by

builder floors. Families these days have a desire to buy a floor so that the whole

family could live together on the same floor as it‟s hard to move up and down in case

of properties with multiple floors. The real estate developers should mainly focus

upon offering multi-storey apartments and builder floors more than the other types of

properties as there is a rising demand for apartments and builder floors.

5. Nowadays, People are more aware of Brands such as DLF, Unitech, Amrapali group

etc in the Real Estate Industry. Customers are also ready to pay an additional cost to

buy from such Renowned real estate developers. So, the developers can take the

advantage of it , by charging an additional cost for their properties and giving better

services and security.

67

6. DLF is the most preferred real estate company because of its trust and long existence

in the Industry. Unitech is second and is closely competing with the DLF. Supertech

is third in the list, followed by BPTP , Emaar MGF,Ansal API and Amrapali. Dlf

should look to maintain its domination in the real estate industry and the other

developers should look to replace Dlf from the top spot.

7. Market Reliability of a Company is the most preferred factor that the customers look

for before buying a property from it. Financial stability is the second in the list,

followed by customer service and earlier completed projects. So, the real estate

companies should focus on creating a good brand image in the market and should try

to reflect as a reliable unit. Companies should also try to maintain their financial

stability.

8. Price is the most important factor in making the buying decision because in India,

customers are very price sensitive and a small variation in price can lead to great

changes in demand. Location is also an important factor.

9. As customers are now more educated and have access to the internet, the property

sites such as Makaan.com, 99acres.com or magicbricks.com are the most used source

to gather information regarding the real estate in Delhi Ncr. The second source of

information is the Developer‟s site, followed by newspapers, radio, television etc. The

companies in the real estate industry should maintain good deals with these property

sites by offering a good commission, and using different means of advertising on

those property sites.

10. Neighbourhood has a strong negative correlation with the parking facility that means

a person who prefers neighbourhood of a property is likely to forgo the parking

facility. So, the realtors should focus more on offering a good neighbourhood rather

than putting high costs for providing the parking facilities.

68

Bibliography

Clapham, D. (1996). Housing and the Economy: Broadening Comparative Housing Research. Urban

Studies , 631- 647.

Gibler, K. M. ( 1998). CONSUMER BEHAVIOR APPLICATIONS TO REAL ESTATE. American Real Estate

Society Meeting .

Glanville, B. A. (2006). Opportunities for Growth: The Appraisal Institute and International Real

Estate Markets. The Appraisal Journal, Summer 2006 .

Haddad, M. ( 2011). Factors Affecting Buying Behavior of an Apartment an Empirical Investigation in

Amman, Jordan . Research Journal of Applied Sciences, Engineering and Technology 3(3): 234-239,

2011 .

Kemeny, J. (1998). Schools of Comparative Housing Research: From Convergence to Divergence.

Housing Studies , 161–176.

Kohn, J. (2007). Modeling the U.S. housing bubble: an econometric analysis . Research in Business

and Economics Journal .

Pugh, C. ( 2001). The Theory and Practice of Housing Sector Development for Developing Countries,

1950–99. Housing Studies , 399–423.

69

Maria.carolina. (2011). The Built & Human Environment Review, Volume 4, Special Issue 1, 2011 .

Melika Husid-Mehmedovid, P. (2007). DECISION MAKING IN REAL ESTATE PURCHASE THE CASE OF

BOSNIA-HERZEGOVINA . The Ninth International Conference:“Challenges of Europe: Growth and

Competitivness – Reversing the Trends” .

Variawa, E. (2010). Buying behaviour and decision-making criteria of Base of the Pyramid consumers:

. Gordon Institute of Business Science.

Xu, F. (2001). Chinese and Non-Chinese Real Estate Marketing and Mortgage Strategies in the

Auckland Residential Market . Unitec Institute of Technology .

70

Annexure

Questionnaire

Q1 . Are you a permanent resident of Delhi NCR region?

a) Yes b) No

Q2 . Have you ever bought any property in Delhi NCR?

a) Yes b) No

Q3 . For how many years have you been living here?

a) <5 years b) 5-10 Years c) 10-25 years d) >25 years

Q4. Please rank these localities of NCR in order of preference for buying a property:-

a) Faridabad

b) Noida

c) Gurgaon

d) Greater Noida

e) Ghaziabad

Is there any specific reason for giving that locality the highest ranking?

a) Yes b) No

If yes, Please mention it here __________________________________________________.

Q5 . Have you ever bought a residential property in the Delhi NCR region for the purpose of Investment?

a) Yes b) No

Q6. What type of residential property do you prefer?

a) Residential Plot

b) Independent house

c) Multi-storey Apartment

d) Builder Floor

e) Villa

f) Other

71

Q7 . Will your preference in the last question change if the property is being bought for investment purpose?

a) Yes b) No

If yes, what will be your preference in that case __________________________________________________.

Q8 . For buying a property, what payment plan do you prefer ?

a) Down Payment

b) Flexi plan

c) Construction linked plan

Q9 . Have you ever heard of Big real estate Developers such as DLF, Unitech, Amrapali etc. ?

a) Yes b) No

Q10 . Would you like to buy a property from a renowned real estate company (DLF, unitech etc) at an

additional cost , if a similar property is available at a lesser price?

a) Yes b) No

Q11 . Please tick the Real estate company‟s name you would prefer buying a Property from.

a) DLF

b) Unitech

c) Supertech

d) Amrapali

e) BPTP

f) Emaar MGF

g) Ansal API

72

Q 12 . Please tick the options that you take into consideration while choosing a real estate company to buy a

property from :-

a) Market Reliability

b) Financial Stability

c) Word of mouth

d) Customer Service

e) Earlier completed projects

f) If any other,

Please specify____________________________________

Q13 . Please rate the following key factors on a scale of 1 to 5 that you take into consideration while making a

buying decision for a residential property. (1=Least Important , 5 = Most important)

a) Price _____

b) Privacy _____

c) Location _____

d) Neighbourhood _____

e) Area/size of the property _____

f) Parking facility _____

g) Proximity to workplace _____

h) Interiors _____

Q14 . Is there any special feature that hasn‟t been mentioned in the last question and is important to you?

----------------------------------------------------------------------------------

Q15 . Please mark the options from which you take help while making a buying decision?

a) Newspapers

b) Television

c) Radio

d) Property sites(Makaan.com,99 acres.com)

e) Developer‟s site

f) People‟s references

g) Any other

73

Q16 . What is your Annual Income?

a) <10 lacs b) 10-25 lacs c) 25-50 lacs d) >50 lacs

Personal Details :

Name __________________________________________________________________________

Age _______ Sex _________

Occupation_____________________________________

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