Rising of Real Estate Sector with Special Reference to Chennai

City
Submitted in Partial Fulfilment for the Award of the Degree

B. Com. (Accounting & Finance)

By

Mudit Jain

1913281034168

Under the Supervision of

Shri. Yeshwanth

Assistant Professor

(Departments of Accounting & Finance)

Ramakrishna Mission Vivekananda College Evening College (Autonomous)

(Affiliated to University of Madras)

Mylapore, Chennai – 600004

2021 – 2022
 CERTIFICATE

This is to certify that this is the Bonafide Record Work and Report of Mudit Jain with
Register Number 1913281034168 of III Year B. Com (Accounting & Finance) submitted in
partial fulfilment of the award of bachelor’s degree course in Commerce in the branch of
Accounting & Finance of RAMAKRISHNA MISSION VIVEKANANDA COLLEGE
EVENING COLLEGE (AUTONOMOUS), MYLAPORE, CHENNAI - 600004,
Affiliated to THE UNIVERSITY OF MADRAS.

Signature of the Guide Head of the Department

(Sri. Yeshwanth) (Dr. V. MANIKANTAN)

Submitted for the Autonomous Viva-Voce Examination to be held in 20 May 2022 at

RAMAKRISHNA MISSION VIVEKANANDA COLLEGE EVENING COLLEGE
(AUTONOMOUS), MYLAPORE, CHENNAI-600004, Affiliated to THE
UNIVERSITYOF MADRAS.

Internal Examiner External Examiner

Date:

ACKNOWLEDGEMENT
With the Blessings of Swami Vivekananda, Sri Ramakrishna and Holy Mother Sri
Sarada Devi, I am happy to present my report on “Rising of Real Estate Sector with
Special Reference to Chennai City”

I am grateful to our College Secretary, Swami Shukadevanandaji Maharaj for

his encouragement and inspiration he provided in the course of my under
graduation.

I would also like to thank our Principal, Dr. K. Sethusankar for his support.

I thank our Evening College In-charge, Swami Muktimayanandaji Maharaj

for his overall encouragement.

I convey my sincere thanks to my Head of the Department, Dr. V. Manikantan and my

Guide Sri. Yeshwanth for their valuable guidance without which this report would not have
been completed successfully.

Last but not the least I place my immense sense of gratitude to my parents and
friends who have been encouraging and helping me in all means in completing
this venture.

Mudit Jain
1913281034168
 CHAPTER -1
INTRODUCTION
1.1 INTRODUCTION

About Real Estate

The word “real” is derived from the Latin, which means existing, actual, real. The term
"Estate" is an English translation of the Old French word "estat" meaning state. The real
estate sector is one of the most recognizable in the world. It is a tangible asset and a kind
of real asset owned by a person. It includes the right to use the land and all its
development. Real estate and housing market play an important role in the economy.

The Real estate sector is the second largest employer sector and the largest
post-agricultural sector in India. Real estate is a type of investment that a person owns
can not only increase in value, give the owner a stable return, but also provide a stable
income and financial stability. The real estate sector in India took great importance on the
independence of economy. Increased business opportunities and labor migration have led
to an increase in demand commercial and real estate. Currently, the real estate industry
plays a vital role contribute to the full development of India's core infrastructure. The
growth of the real estate industry is Linked the development of the retail, tourism and
leisure industries, economic services and information Technology.

India's retail sector has traditionally been dominated by the number of young regional
players with low levels of technology and financial resources. Historically, the sector has
not yet benefited from institutional funding and 0traditionally employed high value
people and other informal sources of funding, which has led to lower levels of
transparency. This situation there have been changes in line with sector growth. This
represents an idea for jobs of the Indian retail sector and the challenges facing the sector
and its prospects.

Depreciation value exists for all asset classes. Property investment is thought to be the
best option because the risk of loss is minimal. The growth and appreciation of this
industry has a direct impact on the country's economy. In India, possessing one's own
property is a subject of pride. The pride and commitment to the property are enormous. It
 is also India's most profitable investment. The Real Estate sector's growth graph appears
to be increasing day by day.

Customers have praised the government's efforts to regulate the real estate market, which
they believe will eliminate project delays and ambiguity in the industry. Private equity
companies' interest in the Indian real estate sector has increased, as seen by recent
financial infusions and investments. The introduction of Real Estate Investment Trusts to
the Indian market has also opened up new investment opportunities for those looking to
join in the real estate boom narrative. The purpose of this study is to highlight the rising
of real estate in Chennai, India.

Real Estate Sector in India

According to Savills India, real estate demand for data centers is expected to increase by 15-18
million sq. ft. by 2025. Demand for residential properties has surged due to increased
urbanization and rising household income.
India is among the top 10 price appreciating housing markets internationally. Organized retail
real estate stock is expected to increase by 28% to 82 million sq. ft. by 2023.
As per ICRA estimates, Indian firms are expected to raise >Rs. 3.5 trillion (US$ 48 billion)
through infrastructure and real estate investment trusts in 2022, as compared with raised funds
worth US$ 29 billion to date.
Private market investor, Blackstone, which has significantly invested in the Indian real estate
sector (worth Rs. 3.8 lakh crore (US$ 50 billion), is seeking to invest an additional Rs. 1.7 lakh
crore (US$ 22 billion) by 2030. Driven by increasing transparency and returns, there’s a surge in
private investment in the sector. Indian real estate attracted U$ 5 billion institutional investments
in 2020, equivalent to 93% of transactions recorded in the previous year.
The real estate segment attracted private equity investments worth Rs. 23,946 crore (US$ 3,241
million) across 19 deals in Q4 FY21. In the
First-half of 2021, India registered investments worth US$ 2.4 billion into real estate assets, a
growth of 52% YoY. India is the leading real estate investment market in Asia. Construction
margins in India are also double that of the world average - a perfect combination that makes
India the most profitable construction market in the world.

Chart showing the Inflow of capital in Real Estate

Real Estate Future

● Flourishing economy; improved GDP (Gross Domestic Product) up to 7.8% P.A.
● India’s materialization as a striking off shore place and accessibility of team of well
capable engineers and managers.
● Development of giant confined units of key companies including TCS, ICICI, Google,
HDFC, KPMG, EY and American Express.
 ● Rise in not reusable income and increasing middle class, escalates the demand for
eminent residential housing and property as an investment option.
● Ingress of proficient companies outfitted with capability in real estate development.
● Liberalization of legal verdicts and processes by the leading bodies, promoting
investments in real estate.
● Advances in infrastructure services.

By 2040, real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000
crore (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach US$ 1 trillion in
market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country’s GDP
by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing
the much-needed infrastructure for India's growing needs.
India’s real estate sector saw over 1,700 acres of land deals in the top 7 cities in 1 year. Foreign
investments in the commercial real estate sector were at US$ 10.3 billion from 2017-21. As of
February 2022, Developers expect demand for office spaces in SEZs to shoot up after the
replacement of the existing SEZs act.

1.2 Objectives

● To know the consumer needs in Real Estate Sector.

● To study the consumer are willing to invest in Real estate sector.

● To understand the consumer expectations or uses for the property.
● To understand what modes, they are using while searching for a property.
● To study which age group of people are more interested in Real estate sector.
● Level of Risk Associated with the real estate sector.
 ● To study the consumer awareness and knowledge about rules and regulations.
● To Analyze the Impact of market variables & behavioral variable on the Real estate
investment pattern.
● To study the Intent of a buyer.

1.3 Statement Of the Problem

The study aims to put emphasis on behavior and preferences towards Real estate sector
and risk-taking ability, rules & regulations associated, type of finance they opt, what
 governments are doing with regards to awareness, consumer willing to invest in this
sector, what factors are affecting, high property prices, lack in uniform documentations.

1.4 Need of the study

This study comprises the vital importance in terms of development of the Real estate
sector. This study focusses on the several vital factors which holds the direct relations
with the real estate market (e.g., other major financial market and Major Economic
indicators). Study also focusses on investment specific variables which further determine
investment pattern in real estate market. So, this study will be helpful to forecast
real-estate trend and it also reveal the factors, crucial and influence investment pattern.
This in turn helpful to understand the demand situation in the market.

1.5 RESEARCH METHODOLOGY

Research methodology states which procedures were executed to carry out the research
study.
Primary data:
Sample methodology:
1. Sample size – 100 respondents.
2. Sample unit – students, employees, professionals, etc.
3. Sample area – Chennai city
4. Sample technique – Snow ball sampling technique, convenience sampling.

Secondary data:
Various other secondary data was also taken from the internet and have been interpreted
and added in this project.
Survey related details conducted by various companies have also been taken into account
and these details are interpreted.

1.6 LIMITATIONS OF THE STUDY

This study has the following limitations

1. The area of study is limited to metropolitan cities (Mainly Chennai)
2. The information given by the respondents might be biased because some of them
might not be interested in providing correct information
3. Today’s findings may not hold true for the future
4. This study is only limited to those who know about Real Estate Sector
5. This study is only limited to 100 responses .
CHAPTER -2
REVIEW
OF LITERATURE
1. “Anticipating and Gearing up Real Estate Sector in India” by Dr. Bhartendu Kr.
Chaturvedi and Mr. Ayush Sharma in their Research paper they have lighted on The
Indian real estate market is growing, with plenty of room for growth, Long-term demand
drivers for real estate are strong in all sectors. It's worth noting, though, that India is a
price-sensitive and competitive market. Product investments that are more affordable
have a better chance of succeeding. An investor must have a long-term investment
horizon while investing in this country. As a result of enhanced market transparency and
loosened investment limitations, institutional investors have already invested over $25
billion in India's real estate sector, with annual returns of 20-25 percent predicted.
Investors should be mindful, however, of the risks of investing in Indian real estate.
Because of the opacity of the market, unregulated speculation, and procedural and
infrastructure issues.

2. “The Significance and Performance of Real Estate Markets in India” by Graeme

Newell & Rajeev Kamineni in their research looks at the Indian real estate markets and
analyses the risk-adjusted performance and portfolio diversification benefits of the office,
retail, and residential real estate sectors in New Delhi and Mumbai (India's two biggest
cities) from 1998 to 2005. In India, real estate markets lagged the stock market from 1998
to 2005, with most markets rebounding in recent years, albeit there was some loss of
portfolio diversification benefits for commercial and residential real estate when
compared to equities. The deregulation of India's capital markets and international
investment is likely to have a significant impact on future FDI levels and the expansion
of real estate funds in the country.

3. “Consumer buying behavior in real estate sector in Punjab” by Jaideep Singh

research about the India is a developing country with a greater than 5% annual growth
rate, ranking sixth in terms of land area and second in terms of human resources (people).
Although the rural population still makes up the majority of the country's population, it is
rapidly changing as a result of industrialization and migration to cities in search of
 education or employment. The real estate business has created enormous potential for all
of its participants. Despite the country's limited resources, the Real Estate Sector has
grown significantly in the last decade, garnering immense economic, technological, and
social significance. The real estate sector provides opportunities for new or expanded
enterprises, as well as for existing businesses to expand.

4. ” Investors problems and prospects of real estate business in erode district” by

Nalini K mention that real estate investment helps to keep a countries economic and
infrastructure growth on track. The real estate sector makes money while also
contributing to the country's economy. Land development is crucial to the country's
progress. The purpose of the study was to look into the industry's problems and
opportunities. Real estate investment has supplied some unique insights on the state of
the real estate market in the area, which may be applied to the Tamil Nadu state as well.
The study's recommendations can assist in resolving the issues; the sector's potential
appears to be attracting more investment.

5. From the research article “Real estate market to touch new heights in 2022” by Aditya
Kushwaha he states that India's real estate business is seeing strong demand in 2022,
which is expected to continue throughout the year. From commercial spaces to residential
sectors, the real estate industry's entire market prognosis is positive. Despite pandemic
threats, the sector remained resilient in 2021, growing steadily. India's first wave of
Covid-19 temporarily halted the industry. However, by the fourth quarter of 2020, the
market had begun to accelerate, owing to growing demand for residential space.
Covid-19's second wave arrived just as the area was starting to recover. The second wave,
unlike the first, has far-reaching implications.
6. In their research paper “An Overview on the Indian Real Estate Sector” by Amit
Kumar Sinha, Abhishek Soni, Madhavi Prajapati have discovered that the real estate
sector has been severely stressed over the past five years. There is a lack of trust in the
real estate business due to the lack of a competent regulatory and monitoring authority.
We also discuss government policies and initiatives in the sphere of real estate
development and problem solving. After reading several articles, to address the
aforementioned challenges, the Indian government has introduced the Real Estate
(Regulation and Development) Bill. It aims to regulate real estate contracts between
buyers and sellers in order to safeguard consumers and standardize business operations. It
creates regulatory authorities at the state level.

7. Dr T. Koti Reddy in their Journal “Progress of Real Estate Sector in India” he

highlighted the booming outsourcing, IT, and BPO companies, which are delivering vast
quantities of cash, have contributed significantly to the real estate boom in India. All of
these activities are motivated by the fact that Indian real estate is extremely appealing due
to fundamental demographics and a scarcity of supply. For the past five years, Indian real
estate has been on a roll. Though Tier 1 cities have reached saturation, the good news for
Indian real estate is that Tier II cities have begun to rise as the IT and industrial sectors
invest in these areas. As a result, Indian real estate is set to expand, bringing the rest of
the economy along with it.

8. Sameer Nayar in his research paper “The Indian Real Estate Market: A
Comprehensive Analysis for the Foreign Investor” he mentions about There is little
doubt that India now offers real estate investors an unrivalled investment opportunity.
With the economy booming at a breakneck speed across the board, demand for various
property kinds is skyrocketing. Real estate investors have achieved incredible gains.
Returns in recent years, and they continue to do so today. A target is used by local
developers. Expected returns in the 40-50 percent range. Although no hard data is
 available to back up these figures, the overall consensus in the business appears to
support this viewpoint Along with the massive price increases in major cities, suburban
developments are also on the rise, and large-scale developments are coming to smaller
and medium-sized cities. And an activity in the market which is not being witnessed in
any other emerging market.

9. Jyoti Bhoj in her research report on” Impact of COVID-19 on Real Estate Industry
with Reference to India” has mentions and given suggestions on the industry must
prepare for far worse consequences than previously anticipated. With the threat of disease
affecting human life, the R.E. department is seeing a drop in property visits and buyer
interest. However, the globe has faced similar flare-ups in the past, such as SARS illness,
bird flu, and so on, and has successfully recovered. Each calamity is an opportunity to
reach new heights. R.E. projects must find inspiration in the situation and gain an edge
through increasing creation and local development. The government would be wise to
halt the spread of the sickness and provide assistance to the firm in an emergency.

10. Dr. D. V. Ingle in his journal on” Real Estate in Indian Context-Opportunities and
Challenges” has researched on in the coming years, India's construction industry will
face numerous issues related to housing, the environment, transportation, power, and
natural disasters. Technocrats connected to Innovative technologies and expert project
management are required in the Indian real estate market. solutions for overcoming these
obstacles the exceptional performance in difficult situations the past will serve as a strong
foundation for the Indian real estate market to succeed a general improvement in the
nation's infrastructure.

11. “Real Estate Investment Trusts (REITs) – An Innovative Approach to Real Estate
Sector” Shreya Virani and Paramjeet Kaur in their research paper they have
highlighted the fact that India's real estate sector is outstanding, it still faces significant
 challenges in obtaining funding from banks, the most significant of which being that REITs
cannot take off until tax rules are changed. At the moment, even real estate IPOs are a source of
anxiety. As a result, REITs provide a powerful mechanism for real estate project financing.
Investors in India may find REITs to be a new form of investment. Because of their openness and
liquidity, listed real estate and real estate investment trusts (REITs) could be good investment
options. REITs have been adopted all over the world, and they've proven to be highly effective in
various regions as investors seek for investments that generate consistent income.

12. ABDUL ASIF KHAN in his research “A study of Real Estate Regulation Act
(RERA), 2016:
Implementation and Issues” he has discussed about the act and in the context of the
country's fast transformation, constructive urbanization has received more attention
during the last few decades. As the nation strives to improve its capacity to meet
developmental demands through the urbanization. A standardized Real Estate Regulation
Act is critical in a country like India. uniform measurements across the country and to
obtain straightforwardness interchange the passage of a law like RERA is a big step
forward in the correct direction. Customers, promoters, and builders all need to be aware.
In the future, RERA modernization of land records, land acquisition, and GST can all be
used as examples.be prioritized for the real estate sector's growth. It is made compulsory
for the various stake holders like builders, promoters, agents and allotters are to be
complied with specification of the projects, project agreements and regulatory
frameworks. It is also to be noted that the real estate entities must ensure that the
properties of allotters are well maintained and that residents a The RERA is a key step in
this direction, ensuring that real estate developers and agents are more accountable to
clients and the government. The RERA is dedicated to the successful and effective
implementation of the country's real estate law, and it has adopted relevant and consistent
steps to promote the sector's development. Various policy measures adopted under the
RERA would undoubtedly produce significant improvements in the economic and social
transformation to stimulate the RERA's long-term development, as well as a
customer-friendly environment.
13. Nikhita Narendran on her research paper on” The Residential Real-Estate Industry
in India: Investigating Evidence for an Asset Bubble” she has pointed out on the
Varied models show that different conclusions about the statistical importance of
macroeconomic factors driving house price growth in India might be formed based on the
available data. My findings do not give conclusive evidence for above-normal growth
rates, contrary to the literature and speculation regarding property bubbles in large
metropolitan cities.

14. Amit Kumar Kashyap, Pranav Singh Rathore Kadambari Tripathi all three in their
article lighted on the cause “Regulating Competition and Cartelization in the
Corporate Real Estate Sector” The Emerging Market Case The fundamental reason for
the rise in cartelization in India is the liberalization of the economy, which has resulted in
deregulation and empowered businesses to manage their own affairs. According to
UNCTAD, cartelization stifles healthy competition by fixing prices and restricting
supply. The report is important because India wants to offer homes to everyone by 2022,
but the COVID-19 pandemic, combined with the issue of cartelization, has made things
worse. The expansion of the Corporate Real Estate sector has been accompanied by an
increase in anti-competitive behaviors, which has had a negative impact on the economy.

15. Sobia Khan & Kailash Babar wrote in an article that CRISIL research Mumbai, the
National Capital Region, Pune, Chennai, Bangalore, and Hyderabad are expected to
see increased absorption of new residential units. In the following two years, it is expected to
grow by 7% to 251 million square feet. The Punjab National Bank has experienced a 14 percent
increase in deposits. Home loan growth in the fourth quarter of 201218. In the hopes of
improving the country's housing The Reserve Bank of India (RBI) cut the repo rate, lowering the
cost of borrowing. Home loans are expected to become more affordable. Interest rates will be
further reduced. Property offtake will increase. Large office spaces are being purchased by
 corporations these days. Profit from the market's sluggishness. The demand for commercial Real
Estate is growing. It will boost the industrial sector's growth rate.

16. EY, FICCI (2014) reports in “Real Estate Making India‖ that the Indian economy”
has been reporting a growth of less than 5% for the past two financial years due to the
sustained retardation of the worldwide economy, the Euro crisis, and structural
constraints and inflationary pressures in India. The country ‘s value growth was 4.5% and
4.7% in FY13 and FY14, respectively. Almost all the sectors recorded a decline, but the
services sector, on which the commercial Real Estate is directly dependent, showed
resilience with a marginal decline in its growth to 6.8% in FY14 from 7.0% in FY1321.
Economic revival is anticipated within the near future thanks to the new stable
Government in India and its plans to revive the country ‘s economy. After witnessing
unstable business cycles within the last decade, the Real Estate sector bogged down
because of reduced user demand, rising inventory, increasing prices of raw material and
the high cost of debt.

17. JLL India states in report “India’s Stock of Commercial Real Estate” that not so long
ago, the Indian economy showed consistent upward growth trajectory, which made it the
second fastest-growing economy in the world. Its high growth rate, backed by a favorable
demographic transition and the strong global economy, fostered rising consumption in
virtually every sector. However, since the start of the global financial crisis (GFC), India
‘s economic growth has been affected by reduced foreign inflows and lower exports.
Nevertheless, India continues to lead in terms of GDP growth over comparable emerging
and developed nations, largely on the back of its socioeconomic fundamentals that remain
intact.
18. Prashant Das and Divyanshu Sharma writes in the book “Real Estate Finance in
India that walking through the urban streets of India” especially in newly developed
areas, we witness numerous shops of Real Estate agents and property dealers. For
laymen, the concept of Real Estate is often overwhelmed by these shops. Real Estate
agents and brokers definitely constitute an important part of the Real Estate system.
However, they are a part of a very large system which transcends in multiple domains
such as finance, investment, management, policy, urban affairs, economics, design, and
engineering. Being such a multidisciplinary discipline.

19. The author Mr. Rohit Gera focused on residential real estate properties in various locations. The
city of Pune is divided into six zones. According to the author, it was the for the first time in
India's history, so many changes occurred in the real world. From November 2016 to July 2017,
the real estate industry changed dramatically. Some Demonetization, GST, and RERA, 2016 (Real
Estate Regulatory Authority) are among them. The key ones are the Regulation and Development
Act, 2016). Collective RERA was created as a result to widespread developer misbehavior. In
2016, newer components of the sector, such as abiding, came into force. Players must abide by
RERA guidelines, which include transparency in operations and timely delivery of goods.

20. India Infoline Home Loan (IIFL Finance), the author told “Smart City Mission” would have a
significant impact on Indian real estate market. Green Architecture and affordable housing will
improve the real estate market in India. The author said that Smart Cities improve the quality of
life and promote the sustainable living in urban and semi-urban locations. With improved
infrastructure, amenities and connectivity, these cities not only promote housing but also
employment, office space shopping malls, hotels, health centers, educational institutes, service
apartments and retail malls. Smart Cities offer a promising long-term solution to the real estate
sector of India. Pradhan Mantri Awas Yojna (PMAY) “Housing for All” has expanded urban
centers to Tier II and Tier III cities. Robust Infrastructure development from metro to smaller
towns leads to better land appreciation. Connectivity of Smart Cities to economic, education and
transportation hubs help real estate activities to grow commercial and residential real estate.
Smart Cities generate employment opportunities, better amenities and better land availability.
Developers will also find good profit by investing in Smart Cities. With pressure eased off, real
 estate prices will become more favorable towards customers and it will also promote
urbanization.

CHAPTER -3
THEORETICAL
AND
CONCEPTUAL
FRAMEWORK

3.1 Introduction
Land including the air above it and the earth below it, as well as any homes or constructions on
it, is referred to as "real estate." It is also known as reality. Residential housing, industrial
workspaces, trading spaces such as theatres, inns, and eating establishments, shops, commercial
buildings such as factories, and government residences are all covered. The purchase, sale, and
development of land, residential, and non-residential buildings are all part of real estate.
Landlords, developers, builders, real estate dealers, tenants, and customers are among the major
players in the real estate sector. The real estate sector's activities also include the housing and
development sectors.

The liberalization of the economy, the real estate sector in India has grown in prominence. As a
result of the increasing business prospects and labor force mobility, demand for commercial and
residential space, particularly rental accommodation, has surged. The retail, hospitality, and
entertainment industries, as well as economic services, all have an impact on real estate
developments.

The real estate industry is a big employer, second only to agriculture in terms of employment.
This is due to the sector's extensive network of backward and forward links with other economic
sectors, particularly the housing and construction sector. The real estate industry supports over
250 ancillary companies, including cement, steel, brick, timber, and building supplies.

3.2 Types of Real Estate

• Land

• Residential

• Commercial

• Industrial

• Land
The land is the basis for all kinds of real structures. Usually, the land refers to the undeveloped
area and the empty land. The developers acquire the land and merged it with other structures and
redistributed it to increase density and increase value.

• Residential
It includes homes of individuals, families, or groups of people. This is the most common type of
inheritance and is the category of property that most people are familiar with. Among the
residences, there are single-family homes, apartments, condominiums, suburban houses, and
other types of residential plans.

• Commercial
It refers to the land and buildings used by businesses for their operations. Examples include
shopping malls, personal stores, office buildings, parking lots, medical centers, and hotels.

• Industrial
It refers to land and buildings used by industrial enterprises to perform activities such as industry,
machinery production, research and development, construction, transportation, logistics, and
inventory.

3.3 Real Estate Perks

● Steady Cash Flow Owning real estate is a way to boost your monthly income. Whether
you invest in commercial real estate or residential, you can rent out your space to tenants.
You’ll then receive monthly income in the form of rent checks. Just be careful: You’ll
need to research the payment histories of your tenants if you want to reduce the chance
that these tenants will one day stop paying their rent.

● Great Returns If the real estate you own increases in value over time, you can sell it for
a solid profit. Remember, though: Appreciation isn’t guaranteed. You’ll need to invest in
the right property to see those big returns.

● Long-Term Security Real estate is a long-term investment, meaning you can hold it for
several years as you wait for it to appreciate. At the same time, if you rent out your real
estate you can earn monthly income while you wait for your property’s value to rise.

● Tax Advantages Investing in real estate comes with tax benefits. You can deduct several
expenses associated with owning an investment property, including your property taxes,
mortgage interest, property management fees, property insurance, the costs of ongoing
maintenance, the cost of repairs and the money you pay to market your property to
potential renters. If you sell your property for more than you paid for it, the gain you
realized won't be taxed as income. Instead, it will be taxed as capital gains, which
typically come with lower tax rates than does income. If you invest in opportunity zones
– neighborhoods that are in need of investment – you'll pay even less in capital gains.
● Diversification Adding real estate to your investments boosts your diversification, which
can protect you in times of economic turmoil. Say certain stocks are suffering because of
an economic downturn. The investment properties in your portfolio might still be
increasing in value, protecting you from the losses your other investments are taking.

● Passive Income Investment properties bring much-desired passive income, that which
you don’t have to work for every day. Say you charge rent on a single-family or
multifamily property. The rent checks that come in each month are an example of passive
income.

● Ability To Leverage Funds When investing in real estate you probably can’t afford to
buy properties in full. After all, that single-family home you plan to rent might cost
$200,000 or more. That’s where leverage comes in. Leverage in real estate means you’re
using other people’s money to purchase properties. In this case, you’ll take out loans from
banks, mortgage lenders or credit unions and pay them back over time. This allows you
to add to your real estate holdings without spending the full amount of money you’d need
to buy them on your own.

● Protection Against Inflation Real estate investments are considered protection against
inflation. When the prices of goods and services are rising, home values and rents
typically increase, too. Investment properties, then, can provide you with rising monthly
income and appreciation to help protect you financially when the costs of everything else
is going up, too.

● Chance To Build Capital The big goal of real estate investing is to increase your cash,
otherwise known as building capital. When you sell a property that has risen in value,
you’ll boost your capital. The key, of course, is to invest in the right properties that will
rise in value.

● Fulfillment And Control Owning investment properties comes with other benefits that
aren’t financial. When you own investment real estate, you are your own boss, which is
 fulfilling to many investors. You can also make a difference in your community,
providing homes for renters or bringing businesses to commercial properties that will
provide much-needed services to their communities.

3.4 How Real Estate Sector works?

The real estate industry works because the value of real estate tends to rise. As a result,
people are able to make a profit by buying and selling real estate. Agent and brokers capture
a portion of this profit by selling a service to those engaged in a real estate transaction. Real
estate agents help people buy and sell homes by providing expertise on the dynamics of the
local real estate market, ensuring any transaction follows local laws and regulations, and
negotiating on behalf of their client. A buyer’s agent represents people seeking to purchase
property. A listing agent represents people seeking to sell property. These agents work with
their clients and each other to complete a real estate transaction quickly and efficiently. Real
estate agents make money by charging a commission for their services that is usually paid
 out as a percentage of the final property selling price. This commission is split by the
buyer’s and seller’s agent and it is only paid out when a sale is complete.

3.5 Advantages and Disadvantages of Real Estate Sector investing

Real estate investing can be a highly profitable activity for many people. This is especially the
case if you are willing to hold onto property for an extended period of time, to take advantage of
property appreciation. However, it is also possible to go wrong in this area and lose your
investment. The following discussion of the pros and cons of real estate investing clarifies the
benefits and risks associated with this important asset class.

Advantages of Real Estate Investing

There are several good reasons why it makes sense to invest in real estate. Consider the
following items:

1. Real Estate Can Be Purchased at Below-Market Prices

It is sometimes possible to acquire real estate at a below-market price – especially when the
seller needs to sell quickly, and you have sufficient cash on hand to fill this need. Taking
advantage of these anomalies requires a deep knowledge of local market prices, which is easier
to obtain when you commit to real estate investing on a full-time basis. Real estate agents are
especially good at locating properties that are available at below-market prices.

2. Real Estate Generates Steady Cash Inflows

When a property is currently being rented out, it generates a stream of monthly rent payments.
Some properties may have additional payments associated with them, such as for washers and
dryers, storage, and parking. Depending on the offsetting cash outflows for mortgage payments,
property taxes, maintenance, and so forth, the net cash inflows may be substantial.

3. Real Estate Provides a Depreciation Tax Shield

The depreciation expense that can be claimed on a real estate investment involves no cash
outflow, and yet reduces the amount of taxable income – thereby shielding you from a portion of
the taxes that would otherwise be due. Currently, the depreciation period for residential real
estate is 27½ years, while the depreciation period for commercial buildings is 39 years.

4. Real Estate Appreciates in Value

Depending on the area, real estate tends to appreciate – depending on local demand levels. This
can vary substantially within even a short distance, but if you choose property carefully, it can
appreciate quite substantially over a long period of time. Also, if you are good at fixing up real
estate, doing so may trigger a substantial increase in property value.

5. Real Estate Provides an Inflationary Hedge

Ongoing increases in inflation tend to cut into the earnings generated from most forms of
investment. This has historically not been the case for real estate, which tends to appreciate at a
rate faster than inflation. Part of the reason for this is that investors see real estate as a hedge
against inflation, and so are more likely to bid up its price when inflation is high. Real estate
prices may also increase during times of uncertainty, since it is considered to be a safe
investment.

6. Real Estate Financing Creates Leverage Benefits

Real estate is usually purchased with the assistance of a substantial mortgage, typically in the
range of 70-80% of the purchase price. This means that any returns from the property are
magnified by the amount of this debt. For example, if you use a $50,000 down payment to
acquire a $300,000 rental property and then earn $25,000 per year from it, you have generated a
return of 50% on your $50,000 down payment – because so much debt was used to fund the
purchase.

7. Real Estate Defers Taxes

You do not pay income tax on any increases in the value of property until you sell it, which may
not take place until years after the initial investment. In addition, it is possible under the current
tax laws to roll the gain over into another real estate investment, thereby extending the tax
deferral period even further. These mechanisms make it possible to potentially avoid income
taxes on the sale of a property for your entire life.

8. Real Estate Income Gradually Increases

If it is possible to increase rental rates at the rate of inflation, then your income gradually
increases, since the fixed-rate mortgage being paid off (your primary expense) does not increase
at the rate of inflation. This results in a gradually increasing rate of return on the property. This
advantage only applies if you avoid variable-rate mortgages.

9. Real Estate Allows for Active Investment Control

Most investors simply buy shares or bonds, for which the related income can go up or down
without their having any control over the proceeds. This is not the case with real estate. An
active investor can search for the best deals, control costs, judge which applicants will become
tenants, and decide when to sell. By participating in every aspect of the investment process, you
can impose more control over how much you earn. In short, your own actions determine how
much you make.

Disadvantages of Real Estate Investing

Despite the positives just noted, there are a few disadvantages to be aware of before investing in
real estate – some of them significant enough to keep you from proceeding. They are noted
below.

1. Real Estate Investing is a Long Grind

The returns from real estate investing generally only accrue over an extended period of time, and
only if you purchase judiciously and invest enough to properly maintain properties. Also,
depending on the types of properties acquired and the nature of your tenants, it may be necessary
to spend a substantial amount of time managing the properties. If you plan to manage properties
directly, this may mean that you will not be able to take any vacation time for years.

2. Real Estate Income Can Be Variable

You may lose money in some periods. This is especially likely when only a small down payment
was made, resulting in larger mortgage payments. Also, in periods when demand is soft, a
property may not be rented at all or it will not be possible to raise the rental rate as much as you
would like. This is especially the case if you have acquired property in an area with fundamental
weaknesses, such as a reliance on one local employer that subsequently closes and lays off its
employees.

3. Real Estate Requires Maintenance

There may be times when unexpected maintenance issues arise, such as a failed water heater or a
leaky roof. The associated repair or replacement costs may be substantial, and could wipe out
your cash reserves. This can come as a particular surprise when the home inspection on a
recently acquired property did not spot the issue.

4. Real Estate is Impacted by Rent Control

If you are investing in residential units, there is a possibility that the local government will
impose rent controls, which severely limit your ability to raise rents. Though it may be possible
to apply to a rent control board for a targeted rent increase, these requests are usually only
granted grudgingly.

5. Real Estate Requires Your Time

Investing in real estate requires a significant amount of time. You will need to spend time
learning about the neighborhoods in which you want to invest, identifying problems with
prospective investment opportunities, and dealing with maintenance issues. It is possible to hire a
property manager to deal with tenants, but dealing with the property manager will still require a
certain amount of time.

6. Real Estate Transaction Costs are High

The transaction costs associated with buying and selling properties can be quite steep. These
costs, which include commissions, title insurance, loan origination fees, and a variety of closing
costs, can easily wipe out the appreciation in market value of a property. These costs can only be
offset by holding onto properties for an extended period of time, so that they can appreciate to a
substantial degree. A large part of these costs is the real estate agent’s commission, which varies
by type of property. The commission on a free-standing home is among the highest rates charged
by a realtor.
7. Real Estate Income is Subject to Taxation
Ongoing income from real estate, as well as gains from the sale of a property, are all subject to
federal and state income taxes – which can be substantial. There are situations where gains from
the sale of a property are not immediately taxable, as noted earlier.

8. Real Estate Values Can Decline

It is entirely possible that the market value of real estate will decline sharply over the short term,
especially when it was preceded by a bubble in property values that sent prices surging higher
than the long-run trend. If you buy property near its peak price with a modest down payment,
experience a valuation decline and then sell at the bottom of the market, it is quite possible that
the entire amount of your down payment will be lost.

9. Real Estate Rents Can Decline

During economic contractions, it can be difficult to find quality tenants. If the contraction is
prolonged, you may be faced with ongoing mortgage, maintenance, and utility payments without
any offsetting rental payments. Or, you may be faced with a series of delinquent tenants.

10. Real Estate is Not Liquid

It can be difficult to sell off real estate within a short period of time. This can be a problem if you
have an immediate need for a significant amount of cash. When you are really pressed for cash, a
vulture investor may swoop in and offer cash immediately at a steep discount to the market price
of the property. This can result in a significant loss on the sale.

3.6 Challenges and Opportunities in Real estate sector

From limited land availability for construction activities to outdated building technologies,
Indian real estate has been long grappling with multiple issues. It is perhaps high time that the
Government provides immediate solutions to these problems and aid the perturbed real estate
developers and homebuyers.

Indian real estate is one of the biggest and globally recognized sectors accounting for about 13
percent of its Gross Domestic Product (GDP). The sector's market size was expected to reach $1
trillion by the year 2030. But, the COVID-19 pandemic led to massive turbulence, with the entire
sector’s revenue and market share decreasing to a new low amid the pandemic-led lockdown and
reverse migration of construction labors. Nevertheless, the introduction of COVID-19 vaccines
and large-scale vaccination drive has opened the economy. Businesses and markets are gradually
returning to their pre-COVID-19 levels, and it seems that the pandemic led problems would soon
be history.

But the pandemic had not been the only problem. Many other issues in the Indian real estate
sector have been troubling the developers and homebuyers since long. The Government needs to
pay heed to these issues and resolve them to make the sector more efficient and growth
orientated. Some of the widespread problems in the Indian real estate sector are:

Unavailability of land There is a large share of underutilized and vacant land parcels that the
Government should spare for development through land regulations, land readjustment and land
pooling policies. This will help the real estate sector grow and improve the situation of
financially aggrieved developers. There is a growing call to change or revise the Land
Acquisition Resettlement and Rehabilitation Act of 2013.

Long-pending infrastructure projects Indian real estate market is rigged with examples of
delayed and long-pending infrastructure projects, be it the public sector projects or private sector
housing colonies. The major reason behind the delay is the uneven funding and lack of
technologies to complete them on time. Besides, the protracted approval process is also a
considerable challenge. Project approvals in India range from days to years due to the absence of
a single-window clearance option, which results in time and cost escalations.
Overpopulation by 2050, India will be the world’s most populous country, with over 50 percent
of people living in urban centers and Tier 1 cities. To sustain such a big population, India
requires more new cities and urban centers on a large-scale to provide all necessary resources to
the inhabitants. Thus, nationwide construction in the housing sector is essential.

Outdated building techniques Indian real estate is the only sector in the world that still uses old
building techniques and is overly dependent on extensive human labor. This, in turn, results in
regular maintenance. On the contrary, new construction techniques require high-quality building
materials such as concrete and iron slabs, which involve less human participation. Therefore, it is
crucial that developers rely on modern building techniques as this will reduce not only the
construction time but also the labor cost and ensure faster deliveries.

3.7 Government Initiatives to promote Real Estate

Make in India Campaign: Launched in the year 2014, the main motive behind the campaign
was to foster manufacturing within the country. By focusing on bringing worldwide investment
for this sector, the campaign has further heralded the development of townships, roads, bridges,
hospitals and other infrastructure.

Pradhan Mantri Awas Yojana: Launched in the year 2015, the Pradhan Mantri Awas Yojana
was a government initiative to envisage affordable housing for all; entailing a shelter, water
facility, sanitation and electricity supply round the clock for the economically weaker sections
and the lower- and middle-income groups. Smart Cities Mission: Again, an influential move
of the government to renovate and retro lift the urban cities, the smart cities mission was
aimed towards building 100 such cities under the guidance of the Union Ministry of Urban
Development, in collaboration with the respective State governments.

Real Estate (Regulation and Development) Act [RERA]: The introduction of RERA in 2016
with an intent to protect the interest of the homebuyers was a great move to help the latter recline
a bit. Nothing short of a game changer for the real estate sector, RERA since its primitive year,
helped to revive the buyer’s confidence and drive momentum in the real estate market.

Demonetization: Introduced on 8th November, 2016, the demonetization moves of the

government, putting a sudden ban on the then existing Rs 500 and Rs 1000 currency notes was
indeed a difficult move for many to deal with. And though, it did bring about multifarious
challenges, it also eliminated some of the prevalent malpractices in the real estate industry and
helped to enhance transparency in the sector.

Amendment to Benami Transactions (Prohibition) Act: Aimed towards regulating the

unaccounted money into the economy, the said Act is expected to bring lucidity in the ownership
of property and result into bolstering investor confidence.

Real Estate Investment Trust (REITs): Approved by the Securities and Exchange Board of
India (SEBI), REIT is a platform to pool money from investors all across the country. The
introduction of REITs is aimed towards allowing the investors to make safe investments into the
real estate of India, and the amount so collected will subsequently be utilized towards the
development of commercial properties in order to generate income.

Service Tax Exemption on Construction of Affordable Housing: Along with various other
measures to revive the Indian real estate market, the finance minister in his Budget speech of
2016 has also announced the waiver of service tax on affordable housing. The exemption of
affordable housing from the purview of service tax was believed to be a move towards meeting
the ‘Housing for all by 2022’ target.

Change in Arbitration norms for Construction Companies: A series of initiatives on

arbitration norms were approved by the Cabinet Committee on Economic Affairs to provide a
sigh of relief to the entities struggling with liquidation issues. The said initiative was meant to
resolve the arbitration cases sooner keeping in mind the stalled construction of projects.

Goods and Services Tax (GST): A revolutionary tax reform rolled out in July 2017, GST has
indeed helped to simplify the home buying process with its “One Nation, One Market, One Tax
“principle. The introduction of GST has further helped to streamline the real estate sector by
removing the possible ambiguities due to multiple taxation system, prevalent erstwhile.

Interest Subsidy for the first-time homebuyers: The announcement of interest rate subsidy on
the home loans by the Prime minister was a move by the government that was expected to give a
thrust to the otherwise stagnant realty sector. An interest subsidy of up to four percent was
allowed under the scheme for loans up to Rs 9 lakh and three percent for loans up to Rs 12 lakh.

Permanent Residency Status for Foreign Investors: The Indian Government had lately
approved a scheme that offers permanent residency status to foreign investors for a period of 10
years, subject to fulfillment of certain conditions. This was a major move by the Indian
Government to encourage foreign direct investment (FDI) in the country, and to facilitate its
Make in India campaign.

Infrastructure Status to Affordable Housing: The grant of infrastructure status to affordable

housing was the government’s initiative to bring about a spur in the housing and construction
activities and to enable these projects avail the associated benefits like lower borrowing rates and
tax concessions.

Change in Capital Gains Tax Regime: Several amendments were made to the Capital Gains
Tax structure in the Union Budget 2017-2018 which were meant to reduce the tax burden on the
property sellers and simplify the movement of immovable assets. This was considered to be one
of the greatest reforms to have an impact on the home owner’s expenditure while disposing off
the property.
Foreign Direct Investment in Real Estate: The government’s decision to allow 100 percent
FDI under the automatic route is a predominant step not only to enhance the scope of foreign
investors but also to induce some of the international trade practices into the Indian real estate
market.

Home loan moratorium for real estate: Due to the COVID-19-led lockdown and the
nationwide restrictions thereof, the Reserve Bank of India allowed the banks and other leading
institutions a three-month loan moratorium on EMIs from March-May 2020. This was later
extended by another three months, i.e., till August 2020. The moratorium is aimed at helping
borrowers and developers who are reeling under monetary pressure since long

Extension in project registration amid COVID-19: In 2020, the Government of India

identified the outbreak of novel Coronavirus as a Force Majeure event. Resultantly, over 20
States provided an extension in the registration of real estate projects by 6-9 months. While
large-scale migration of laborers and huge disruption in the supply of materials adversely
impacted construction works, the said measure indeed provided certain relief to developers who
have been grappling with multiple issues, including a slowdown in sales, and the persistent
liquidity crisis.
3.8 Future of Indian Real Estate Sector
The reality is that today more consumers are willing to invest in a property of their own. In the
year 2022 will see more buying in Metropolitan as well as mid-level cities. A small city holds its
charm and is relishing its real potential now. Some studies suggest that the same house in a
Metropolitan will cost more. These changes are visible due to enhanced consumer trust.
Parameters to judge these factors are Sales have been enhanced in the last FY 2021. It has been
noticed that most houses were sold in the period between January and September 2021. One can
pinpoint straight to initiatives like Government schemes, Builders incentivized buying. Amongst
these, it is the strong economic reforms prompted by the Government for the Real Estate sector.
The government played a key role as it lowered the home loan interest rate. Shravan Gupta feels
this will be fruitful in the long run. And will bring more buyers to the market.

More affordability Experts like Shravan Gupta have analyzed the market and suggested that
home loans are at an all-time low. Most Nationalized banks are offering loans for as low as 6.5%.
This has boosted the confidence of new and first-time buyers. The housing sector will grow by
more than 40% in the coming months.

Bigger projects Enhanced consumer confidence has led builders like Shravan Gupta to make
larger projects in mid-level cities. Today mid-level cities like Kanpur are seeing mega level
housing projects with optimum facilities. Such a scenario was unimaginable a few years ago. But
the onset of the Pandemic brought this change.

Raw materials are available easily for building houses are now available with ease again. This is
thanks to the enhanced production and its availability. It has quickened the pace of new
constructions.
CHAPTER - 4
DATA ANALYSIS
AND
INTERPRETATION

Table 4.1 Age

Age
Frequency Percent Valid Percent Cumulative Percent
 Valid <20 YEARS 39 39.0 39.0 39.0
21-30 YEARS 54 54.0 54.0 93.0

41-50 YEARS 2 2.0 2.0 95.0

>50 YEARS 5 5.0 5.0 100.0

Total 100 100.0 100.0

Chart 4.1

INTERPRETATION:
From the above Table 4.1 It is found out that the majority of the respondents i.e., 54%
respondents belong to the age group 21-30 years, followed by 39% respondents are of age group
Below 20 years, 5% respondents belonging to age group of more than 50, followed by 2%
respondents of age group 41-50.

Table 4.2 Gender

Gender
 Frequency Percent Valid Percent Cumulative Percent

Valid Male 80 80.0 80.0 80.0

Female 17 17.0 17.0 97.0

Prefer not to say 3 3.0 3.0 100.0

Total 100 100.0 100.0

Chart 4.2

INTERPRETATION:

From the above table 4.2 it is found out that 80% respondents of this study are Male, 17% of the
respondents are Female, 3% of the respondents are opted for not to say.

Table 4.3 Educational Qualification

Educational Qualification
 Frequency Percent Valid Percent Cumulative
Percent

Valid SCHOOL 11 11.0 11.0 11.0

UG/PG 74 74.0 74.0 85.0

PROFESSIONAL COURSES 15 15.0 15.0 100.0

Total 100 100.0 100.0

4.3 Chart

INTERPRETATION:
From the above Table 4.3 it is found out 74% respondents of the study are doing UG/PG, 11 %
of the respondents are in school level education, 15% of the respondents are into professional
level courses.

Table 4.4 Employment Status

Employment Status
 Frequency Percent Valid Percent Cumulative
Percent

Valid STUDENT 80 80.0 80.0 80.0

SELF EMPLOYED 4 4.0 4.0 84.0

BUSINESS 6 6.0 6.0 90.0

PROFESSIONAL PRACTICE 10 10.0 10.0 100.0

Total 100 100.0 100.0

Chart 4.4

INTERPRETATION:
From the above table 4.4 it is found out 80% respondents of this study are students, 10% of the
respondents are doing professional practice, followed by 6% of the respondents are doing
business, and 4% of the respondents are self-employed.

Table 4.5 Monthly Income

Monthly Income
Frequency Percent Valid Percent Cumulative Percent
 Valid NO INCOME 63 63.0 63.0 63.0
BELOW 10000 2 2.0 2.0 65.0

10001 - 25000 9 9.0 9.0 74.0

25001 - 50000 10 10.0 10.0 84.0

ABOVE 50000 16 16.0 16.0 100.0

Total 100 100.0 100.0

Chart 4.5

INTERPRETATION:

From the above table 4.5 it is found out that 63% respondents of this study belong to the
category of No Income, 16% respondent income is above 50000, 10% respondents income level
in category of 25001-50000, followed by 9% respondents income level of 10001-25000, and 2%
respondents income level below 10000.

Table 4.6 You/Family Owning a property

You/Family Owning a property
 Frequency Percent Valid Percent Cumulative Percent

Valid Yes 82 82.0 82.0 82.0

No 18 18.0 18.0 100.0

Total 100 100.0 100.0

Chart 4.6

INTERPRETATION:
From the above table 4.6 it is found out 82% respondents are having a property weather it owns
by him/her or by any of their family member, 18% of the respondents doesn’t owns any property.

Table 4.7 Area preference

Area preference
 Frequency Percent Valid Percent Cumulative Percent

Valid Urban 59 59.0 59.0 59.0

Semi Urban 41 41.0 41.0 100.0

Total 100 100.0 100.0

Chart 4.7

INTERPRETATION:

From the above table 4.7 it is found out 59% respondents of this study prefers urban properties,
in contrast 41% of the respondents prefers semi urban property.

4.8 Respondents view on Investing in real estate

Respondents view on Investing in real estate
 Frequency Percent Valid Percent Cumulative Percent

Valid Yes 50 50.0 50.0 50.0

No 2 2.0 2.0 52.0

Maybe 48 48.0 48.0 100.0

Total 100 100.0 100.0

4.8 Chart

INTERPRETATION:
From the above table 4.8 it is found out that 50% respondents of this study are willing to invest
in future, 48 % of the respondents chose maybe they are not sure, % of the respondents are opted
for No they don’t want to invest in Real Estate Sector.
Table 4.9 Finance Mechanism
Finance Mechanisms
 Frequency Percent Valid Percent Cumulative Percent

Valid LOAN FROM BANK 74 74.0 74.0 74.0

LOAN FROM RELATIVES & 5 5.0 5.0 79.0

FRIENDS

FULL CASH 21 21.0 21.0 100.0

Total 100 100.0 100.0

Chart 4.9

INTERPRETATION:
From the above table 4.9 it is found out that 74% respondents of this study are more interested
taking loan from bank, 21% respondents opted for full cash payment, 5% respondents are willing
to finance from their relatives & friends.

4.10 Intent of a property buyer

Intent of a property buyer
 Frequency Percent Valid Percent Cumulative Percent

Valid TO LET OUT 10 10.0 10.0 10.0

FOR OWN USE 43 43.0 43.0 53.0

TO TRADE (BUYING & SELLING) 2 2.0 2.0 55.0

FOR INVESTING PURPOSE 45 45.0 45.0 100.0

Total 100 100.0 100.0

Chart 4.10

INTERPRETATION:
From the above table 4.10 it is found out 45% respondents of this study are more interested in
investing real estate, 43% respondents are interested in own use, 10% respondents intent to let
out and 2% respondents for trade purpose to gain short term profit.

Table 4.11 Unorganized Pricing of Real Estate

Unorganized Pricing of Real Estate
 Frequency Percent Valid Percent Cumulative Percent

Valid STRONGLY AGREE 70 70.0 70.0 70.0

NEUTRAL 27 27.0 27.0 97.0

DISAGREE 3 3.0 3.0 100.0

Total 100 100.0 100.0

Chart 4.11

INTERPRETATION:

From the above table 4.11 it is found out 70% respondents of this study are more strongly agree
on unorganized prices in real estate, 27% respondents are neutral, In contrast 3% respondents are
disagreeing.

4.12 Lack of awareness in Laws & Regulations

 Lack of awareness in Laws & Regulations

Frequency Percent Valid Percent Cumulative Percent

Valid STRONGLY AGREE 80 80.0 80.0 80.0

NEUTRAL 20 20.0 20.0 100.0

Total 100 100.0 100.0

Chart 4.12

INTERPRETATION:

From the above table 4.12 it is found out 80% respondents of this study are strongly agrees on
lack of awareness of rules & regulations in real estate, while 20% respondents are neutral.

Table 4.13 Awareness about charges related to Property

Awareness about charges related to Property

 Frequency Percent Valid Percent Cumulative Percent

Valid Yes 64 64.0 64.0 64.0

No 36 36.0 36.0 100.0

Total 100 100.0 100.0

Chart 4.13

INTERPRETATION:

From the above table 4.13 it is found out 64% respondents of this study are opted for yes that
they are aware of the charges related to real estate, 36% respondents are not aware of the
charges.

Table 4.14 Rate of risk involvement in real estate

Rate of risk involvement in real estate

 Frequency Percent Valid Percent Cumulative Percent

Valid 4 6 5.6 5.6 5.6

5 14 13.0 13.0 18.5

6 15 13.9 13.9 32.4

7 32 29.6 29.6 62.0

8 32 29.6 29.6 91.7

9 3 2.8 2.8 94.4

10 6 5.6 5.6 100.0

Total 108 100.0 100.0

INTERPRETATION:

From the above table 4.14 it is found 29.6% respondents of this study opted that real estate is
risky sector, 29.6% respondents are saying real estate is high risk bet, 13.9% respondents opted
real sector is risky sector, 13% respondents opted real estate risk is neutral, 5.6% respondents are
opted real sector is high risk sector, in contrast 5.6% respondents are opted that real estate sector
is low risk sector, 2.8 % respondents opted real estate is very high risky sector.

Table 4.15 Type of property

Type of property
 Frequency Percent Valid Percent Cumulative Percent

Valid HOUSING 59 59.0 59.0 59.0

COMMERICAL 14 14.0 14.0 73.0

INDUSTRIAL 12 12.0 12.0 85.0

AGRICULTURE 9 9.0 9.0 94.0

OTHERS 6 6.0 6.0 100.0

Total 100 100.0 100.0

INTERPRETATION:

From the above table 4.15 it is found out 59% of respondents of this study are interested in
housing property, 14% respondents are interested in commercial, 12% respondents are interested
in industrial properties, 6% respondents are interested in other real estate assets.

4.16 ANOVA
H0 Null Hypothesis: There is no significant difference between Age and Intent Of purchasing
the property in real estate sector.
H1 Alternate Hypothesis: There is significant difference between Age and Intent Of purchasing
property in real estate sector.

Table 4.16 ANOVA

ANOVA

Age & Intent of Purchasing property

Sum of Squares df Mean Square F Sig.

Between Groups 3.052 3 1.017 1.150 .333

Within Groups 84.948 96 .885

Total 88.000 99

INTERPRETATION:
From the above table 4.16 it is evident that the Significant value to be 0.333, which is above
0.05.
Hence, the null hypothesis is accepted. Thus, it can be concluded that there is no significant
difference between Age and Intent Of purchasing property in real estate sector.

4.17 ANOVA
H0 Null Hypothesis: There is no significant difference between Level of Education &
Preference of property in real estate sector.
H1 Alternate Hypothesis: There is significant difference between Level of Education &
Preference of property in real estate sector.

Table 4.17 ANOVA

ANOVA

Level of Education & Preference of property

Sum of Squares df Mean Square F Sig.

Between Groups .733 1 .733 1.077 .302

Within Groups 66.657 98 .680

Total 67.390 99

INTERPRETATION:
From the above table 4.17 it is evident that the Significant value falls to be 0.302 which is above
0.05.
Hence, the null hypothesis is accepted. Thus, it can be concluded that there is no significant
difference between Level of Education & Preference of property in real estate sector.
.

4.18 ANOVA
H0 Null Hypothesis: There is no significant difference between monthly income and respondent
view on purchasing a property.
H1 Alternate Hypothesis: There is significant difference between monthly income and
respondent view on purchasing a property.

Table 4.18 ANOVA

ANOVA

Monthly Income

Sum of Squares df Mean Square F Sig.

Between Groups 3.741 2 1.870 .725 .487

Within Groups 250.299 97 2.580

Total 254.040 99

INTERPRETATION:
From the above table 4.18 it is evident that the Significant value falls to be .487 which is above
than 0.05.
Hence, the null hypothesis is accepted. Thus, it can be concluded that there is no significant
difference between monthly income and respondent view on purchasing a property.

4.19 Chi-Square Test

H0 Null Hypothesis: There is no significant difference between owning a property by a any
family member and type of property they choose.
H1 Alternate Hypothesis: There is no significant difference between owning a property by an
any family member and type of property they choose.

Table 4.19 Chi- Square Table

Chi-Square Tests

Value df Asymptotic Significance

(2-sided)

Pearson Chi-Square 18.117a 4 .001

Likelihood Ratio 16.106 4 .003

Linear-by-Linear Association 16.757 1 .000

N of Valid Cases 100

a. 5 cells (50.0%) have expected count less than 5. The minimum expected count is 1.08.

INTERPRETATION:
From the above table 4.19 it is evident that the Significant value falls to be 0.001 which is less
than 0.05.
Hence, the alternate hypothesis is accepted. Thus, it can be concluded that there is no significant
difference owning a property by an any family member and type of property they choose.

4.20 Chi-Square
H0 Null Hypothesis: There is no significant difference between Employment status and risk
involvement in real estate sector.
H1 Alternate Hypothesis: There is no significant difference between Employment status and
risk involvement in real estate sector.

Table 4.20 Chi- Square Table

Chi-Square Tests
Value df Asymptotic Significance
(2-sided)

Pearson Chi-Square 41.823a 18 .067

Likelihood Ratio 36.633 18 .006

Linear-by-Linear Association 10.498 1 .001

N of Valid Cases 100

INTERPRETATION:
From the above table 4.20 it is evident that the Significant value falls to be 0.067 which is more
than 0.05.
Hence, the null hypothesis is accepted. Thus, it can be concluded that there is no significant
difference between Employment status and risk involvement in real estate sector.
CHAPTER- 5
FINDINGS,
SUGGESTIONS
&
CONCLUSIONS
5.1 Findings:
⮚ It is found out that the majority of the respondents i.e., 54% belong to the age group
21-30 years.
⮚ It is found out that the majority of the respondents i.e., 80% respondents of this study are
Male.
⮚ It is found out that the majority of the respondents i.e., 74% of the respondents are doing
UG/PG.
⮚ It is found out that the majority of the respondents i.e., 80% of the respondents are
Students.
⮚ It is found out that the majority of the respondents i.e., 63% of the respondents belong to
the category of No Income
⮚ It is found out that the majority of the respondents i.e., 82% of the respondents are having
a property weather it bought by him/her by any family member.
⮚ It is found out that the majority of the respondents i.e., 59% of the respondents prefers
urban properties.
⮚ It is found out that the majority of the respondents i.e., 50% respondents are willing to
invest in future.
⮚ It is found out that the majority of the respondents i.e., 74% respondents are more
interested taking loan from bank.
⮚ It is found out that the majority of the respondents i.e., 45% respondents are more
interested in investing in real estate.
⮚ It is found out that the majority of the respondents i.e., 70% respondents are more
strongly agree on unorganized prices in real estate.
⮚ It is found out that the majority of the respondents i.e., 80% respondents are strongly
agreeing on lack of awareness of rules & regulations in real estate.
⮚ It is found out that the majority of the respondents i.e., 64% respondents are saying yes
that they are aware of the charges related to real estate.
⮚ It is found out that the majority of the respondents i.e., 29.6% of respondents of has opted
that real estate is risky sector.
⮚ It is found out that the majority of the respondents i.e., 59% of respondents are interested
in housing property.
 ⮚ The results of ANOVA between Age and Intent of purchasing property in real estate
sector has no significant difference.
⮚ The results of ANOVA between Level of Education & Preference of property in real
estate sector has no significant difference.
⮚ The results of ANOVA between monthly income and respondent view on purchasing a
property has no significance difference.
⮚ The results of Chi-square between owning a property by an any family member and type
of property they choose has no significance difference.
⮚ The results of Chi- between Employment status and risk involvement in real estate sector.
has no significance difference.

5.2 Suggestions
All of the present problems notwithstanding, India have a number of assets that appear to bode
well for living up to that challenge. Having built up a modern system of Real Estate sector and
research virtually from scratch since independence has been a major achievement and should be
a solid predictor of future growth. Furthermore, and especially for an outside observer, one of the
most impressive aspects of the current situation in Indian Real Estate sector is the emergence of
an extraordinarily lively and critical discourse on the further direction that the Indian system of
Real Estate sector should take. This critical discourse, some of which has found its way into the
present study, is fully cognizant of the problems the system faces, but is also a very valuable
source of ideas and proposals for change. The decisions that are going to be taken on these and
similarly bold proposals are likely to hold the key to India ‘s future as a center of real sector.

Time has come to remove the stigma associated with profits in the real sector so that legitimate
private enterprises can have access to capital and set up world-class universities that the country
needs so badly. radical overhaul of the Real Estate sector system is much needed. Time has now
come to walk the talk. We recommend that the Real Estate sector is granted 'industry status' as
soon as possible so that a legislative framework can be put in place for the control and
management of the sector and its day-to-day operation. The government should revoke the recent
Press Notes that relate to permitting cascading sub companies, as these are only serving to
provide a loop-hole for back-door entry by foreign Real Estate and are not promoting
transparency within the policy. Labor Laws need to be reviewed to be more in line with the
requirements of Real Estate sector employment. Investment should be made by the government
to improve the efficiency of the manufacturing sector so that this sector can grow and provide
more employment opportunities going forward.
5.3 Conclusions
This research study includes an Introduction which gives the reader an entire overview of the
research on Real estate sector in general which sheds light on the historical background. The
Real Estate Sector of India describes the position and significance of the Real Estate Sector in
India. This chapter also includes various definitions pertaining to the Real Estate a along with
their explanations followed by the important parameters which enables the city of Chennai. The
chapter also includes different modules relevant to the Real estate in the development Chennai
City. Finally, the chapter includes the Statement of the Problem, Need and Significance of the
Study, Objectives and Hypotheses of the study and its Scope. The thesis –the review of literature
provides us with an important information of the research work done before in the area of the
present study. It helps the researcher in outlining the research work and determining objectives of
the researcher’s topic. The review of literature in this research area includes the literature in
National and International books and International Journals related to the Real Estate Sector. The
researcher also has gone through theses and Magazines related to Real Estate Sector. The
literature review also includes the relevant literature in News Letters and National News Papers
related to Real Estate Sector. The researcher has also taken into consideration the literature on
the Website of the Central Government of India related to Real Estate Sector and that on the
Website of Greater Chennai Corporation related to Chennai City and Real Estate Sector. The
present review of literature includes the literature present in Annual Journal related to Chennai.
The researcher has also benefitted from the Web Blog and Articles on websites related to Real
Estate Sector. Finally, the present literature review includes the relevant literature discussed in
proceedings of Conferences, Seminars related to Real Estate Sector.
ANNEXURE