Project Report Geetha_MBA

“A Study on Customer’s Preferences for High-Class Gated Community Residential Flats in OMR,

Chennai”

Geetha. P 13MBA1022

INDUSTRY PROFILE

Residential Real Estate Industry has increase in growth in the

past few years owing to the following reasons: Continuous growth in population Migration towards urban areas Ample job opportunities Growing income levels Rise in nuclear families Easy availability of finance

Demand for houses increased especially in urban areas

COMPANY PROFILE

'Passion, Principles and Performance'

• Akshaya Private Ltd. is a construction and a real estate company

• Founded in 1995 by T. Chitty Babu• Both commercial and residential projects all over India• More than 10 successful projects in OMR, viz. Akshaya

Today/January/Adair/unCompromise/Abov/Tango• CREDAI partner/member• IGBC certified• Competitors : Pacifica Aurum, TVH, Appasamy Real Estates,

Radiance Shine , Hiranandhini, Ceebros, Adorit etc

RESEARCH OBJECTIVES

To find out customer preference for the key attributes with reference to the buying decisions of high class gated community residential flats.

To study the set of factors that a consumer takes into consideration while making a decision of buying a home in OMR, Chennai.

To find out buying preferences of the consumers with respect to Location Prize Size Brand preference Amenities of the property

RESEARCH METHODOLOGY

Research type : Descriptive Method

Sampling method : Non Probabilistic method

Sample size : 120

Period of study : 3 months

Data collection : Primary data - from Akshaya Customers & General

customers from property fair

Statistical Tools : SPSS, MS Excel

FACTORS INFLUENCING BUYING DECISION OF THE PROPERTY

PURCHASE OF FLATS

Location Cost

Facilities

Growth Rate

Proximity to Work Place

privacy

Amenities

Exteriors

Interiors

Neighborhood

Timely possession

Green Environment

FACTORS INFLUENCING BUYING DECISION OF THE PROPERTY

Locati

on / Plac

e

Cost/Pric

e

Facili

ties/Pro

duct

Growth Rate

/ Pro

motion

Proxim

ity to

Work

Place

Privacy

Amenities

Ideal T

icket

size o

f the F

lat

Day Lig

htning Pro

vision/N

atural

L...

Exter

iors

Interiors

Socia

l Clas

s of N

eighbourh

ood

Timely

Possessi

on of the P

ropert

y

Green En

vironmen

t0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Location / PlaceCost/PriceFacilities/ProductGrowth Rate/ PromotionProximity to Work PlacePrivacyAmenitiesIdeal Ticket size of the FlatDay Lightning Provision/NaturalLightExteriorsInteriorsSocial Class of Neighbourhood Timely Possession of the PropertyGreen Environment

7.10 FACTORS INFLUENCING BUYING DECISION OF THE PROPERTY

MEA

N

PREFERENCES ON LOCATION & LOCALITIES

LOCATION LOCALITIES

Center

Of C

ity

With

in City Lim

it

Out Side C

ity Lim

it

Rural Area

No Speci

fic Perf

erences

0

5

10

15

20

25

30

35

40

45

Center Of CityWithin City LimitOut Side City LimitRural AreaNo Specific Perferences

7.20 LOCATION PREFERRED

ME

AN

Taram

ani

Perungu

di

Karapak

kam

Shollin

ganall

ur

Navalu

rPad

ur

Kelambak

kam

Thiru

porur

0

5

10

15

20

25

TaramaniPerungudiKarapakkamShollinganallurNavalurPadur KelambakkamThiruporur

7.23 LOCALITIES PREFERRED IN OMR TO BUY THE PROPERTY

ME

AN

PROXIMITY/ PURPOSE

PROXIMITY PURPOSE

Public Tra

nsport

Work

place

Schools &

College

s

Hospita

ls

Shopping m

alls

Recrea

tional Fa

cilities

3.60

3.70

3.80

3.90

4.00

4.10

4.20

4.30

Public TransportWork placeSchools & CollegesHospitalsShopping malls Recreational Facilities

7.24 Importance given to PROXIMITY / ACCESSIBILITIES to Key facilities

VALU

ES

Own Use28%

Invesment25%Gift

12%

Rental13%

Business9%

Guest house14%

9.14 PURPOSE OF BUYING THE PROPERTY

BUDJET OF THE PROPERTY PREFERRED

RS25 Lakh-RS 50 Lakh30%

RS 50 Lakh-RS 75 Lakh33%

RS 75 Lakh-RS 1 CR27%

RS 1CR-RS 1.5 CR6%

RS 1.5CR-RS 2 CR3%

No Money Constraints2%

PREFERENCE ON SIZE & TYPE OF THE PROPERTY

SIZE TYPE OF FLAT

500 Sq. F

t. - 1000 Sq

. Ft.

1000 Sq. F

t. - 1 500 Sq

. Ft.

1500 Sq. F

t - 2000 Sq

. Ft.

2000 Sq. F

t - 2500 Sq

. Ft.

More than

2500 Sq

. Ft.

No Speci

fic Pref

erences

0

5

10

15

20

25

30

35

40

500 Sq. Ft. - 1000 Sq. Ft.1000 Sq. Ft. - 1 500 Sq. Ft.1500 Sq. Ft - 2000 Sq. Ft.2000 Sq. Ft - 2500 Sq. Ft.More than 2500 Sq. Ft.No Specific Preferences

7.26 IDEAL TICKET SIZE OF THE FLAT PREFERRED

MEA

N

1 BHK + 1 to

ilet +

1 Car Park

2 BHK + 2 to

ilets

+ 2 Car

Parks

3 BHK + 2 to

ilets

+ 2 Car

Parks

3 BHK + 3 to

ilets

+ 3 Car

Parks

4 BHK + 3 to

ilets

+ 3 Car

Parks

0

5

10

15

20

25

30

35

1 BHK + 1 toilet + 1 Car Park2 BHK + 2 toilets + 1 Car Park2 BHK + 2 toilets + 2 Car Parks3 BHK + 2 toilets + 1 Car Park3 BHK + 2 toilets + 2 Car Parks3 BHK + 3 toilets + 2 Car Parks3 BHK + 3 toilets + 3 Car Parks 4 BHK + 3 toilets + 2 Car Parks4 BHK + 3 toilets + 3 Car Parks

7.27TYPE OF FLAT PREFERRED

ME

AN

CONSIDERATIONS WHILE BUYING THE PROPERTY

• BRAND – (4.05)• CREDAI (CONFEDERATION OF REAL ESTATE DEVELOPERS ASSOCIATIONS OF INDIA) – (4.03)• IGBC(INDIAN GREEN BUILDING COUNCIL) – (3.91)

3.80

3.85

3.90

3.95

4.00

4.05

4.10

Brand Credai CertificationGreen Building CertificationVaastu Numerology Customization

7.13 CONSIDERATIONS WHILE BUYING THE PROPERTY

ME

AN

BRAND PREFERENCE

Akshay

a

Pacifica

Aurum TV

H

Ceebro

s Boulev

ardAdorit

Appasamy

ETA

Radian

Shine

Vijay S

hanthi

DLF

Tata

Value H

omesSS

PDL

Prestige

Silve

r Sprin

gs

Hiranan

dhini

Opaline

XS Rea

l

Gem Gro

ove

Puravan

kara

Mantri

Synerg

yL&

T

Bollinen

i Hill

Side

Jain Housin

g

Shoba M

eritta

Color Homes

Casa Gran

de

Amarprak

ash0

10

20

30

40

50

60 AkshayaPacifica AurumTVHCeebros BoulevardAdoritAppasamyETA Radian ShineVijay ShanthiDLFTata Value HomesSSPDLPrestige Silver SpringsHiranandhiniOpalineXS RealGem GroovePuravankaraMantri SynergyL&TBollineni Hill SideJain Housing Shoba MerittaColor HomesCasa GrandeAmarprakash

7.15 CHOOSING A REAL ESTATE PROPERTY

VALU

ES

Power Back

up

Wate

r Trea

tmen

t Plan

t

Piped Gas

Line

Wast

e Man

agem

ent S

ystem

Rain W

ater H

arvesti

ng

Depart

mental

Store

Inter

com Fa

cility

Gymnasi

um

Swim

ming Pool/K

ids Pool

Dressin

g ro

om with

locke

r faci

lity

Children

’s Play

Area

Day Care

/ Play

School

Club House/Confer

ence

RoomATM

3.00

3.20

3.40

3.60

3.80

4.00

4.20

Power Backup Water Treatment Plant Piped Gas LineWaste Management System Rain Water HarvestingDepartmental Store Intercom FacilityGymnasiumSwimming Pool/Kids PoolDressing room with locker facilityChildren’s Play AreaDay Care/ Play School Club House/Conference RoomATM

7.32 PREFERENCES ON BASIC AMENITIES INSIDE THE GATED COMMUNITY

VA

LU

ES

PREFERENCES ON BASIC AMENITIES

2.50

2.60

2.70

2.80

2.90

3.00

3.10

3.20

3.30

LibraryMini Auditorium/Mini TheatreYoga & Meditation HallAerobics & DanceWi-Fi AccessCCTV for SecurityVideo Door PhoneWalker’s PathwayMultipurpose Hall For Parties/functionsRooms for staffs/Securities & drivers Mini RestaurantBeauty ParlourClinicPharmacySchoolPaid Guest HouseVisitor’s Car parkGarbage ChuteFire Safety ProvisionsWide Open Space

7.33 PREFERENCES ON SPECIAL AMENITIES INSIDE THE GATED COMMUNITY

VA

LU

ES

PREFERENCES ON SPECIAL AMENITIES

Balcony G

arden

Roof Gard

en

Wate

r body/F

ountain

Sculptures

Music’s

in amen

ities are

a

Plantati

on of tree

s

Flower

plants

in park

Wide O

pen Sp

ace/ p

ark ar

ea

Amphi Thea

tre

Signag

e’s at

require

d places

3.70

3.75

3.80

3.85

3.90

3.95

4.00

4.05

4.10

4.15

Balcony Garden Roof Garden Water body/Fountain SculpturesMusic’s in amenities area Plantation of trees Flower plants in park Wide Open Space/ park area Amphi TheatreSignage’s at required places

7.34 PREFERENCES ON ADDITIONAL AMENITIES INSIDE THE GATED COMMUNITY

VA

LU

ES

PREFERENCES ON ADDITIONAL AMENITIES

FINDINGS

Location, price, size, Amenities, Proximity to Work Place, Growth Rate and Price are the important factors to be considered in buying the property.

60% - Nuclear family types, 26% are Joint Family and 14% are Single living . 40.8% of the customers are Professional Degree Holders and 28.3% are Master

degree holders. 72% are salaried class while 28% have their own business 32.5% are in the income level of Less than 10 Lacs, and 23.3% are 10-15Lacs,

16- 20 lacs and above 30 lacs category has 15 % and 10.8 % respectively. Most of them are migrants from outside 38% of Customers are living in Chennai for 5-10 yrs, are willing to buy Gated

Community Flats in OMR, Chennai

--contd…

26.7% of customers are below 30 years of Age groups and 46.7% are 40-50 years. People in early age group are more interested on buying gated community flats due

to their change in trends among generations because of early job opportunities and easy availability of bank loans.

Most of them are planned to buy a property by both Loan and Own Funding, and few of them having their own funds.

27% of respondents are willing to purchase flat for their own use and 25% are for Investment purpose, followed by rental/ leasing purposes.

32.5% of respondents are looking for their flat with in the city limit and 27.5% are willing in the center of the city for easy access of all types of facilities.

30.8% of respondents are preferred their flats proximity to work place with the distance of 20kms and 24.2% are interested by less than 10kms.

Accessibility to public transport, proximity to work place, hospitals is their main preference followed by proximity to shopping malls, Educational Institutions & other recreational facilities .

-contd…

FINDINGS

FINDINGS

Sholinganallur, Navalur, Kelambakkam ,- most preferred locality in OMR region in terms of customer’s preference mainly because of high growth rate and increase in job opportunities.

Multi-storey Apartments is the most preferred type of property, closely followed by builder floors.

People are more aware of brands such as Akshaya, Pacifica, Ceebros, Hiranandhini, Shine and Bollieni group in the real estate Industry. Customers are also ready to pay an additional cost to buy from such renowned real estate developers.

26.7% of respondents are below 30 years of Age groups and 21.7% are 40-50 years Age levels. It shows that early age group people are more interested on buying gated community flats due to their change in trends among generations and lot of early job opportunities and easy availability of bank loans for household purchase.

People who are in less than 10 lacs annual income level prefer buying studio /single BHK multi-storey apartments with a price range of (25-50 lacs) & people in income level of 10- 20 lacs income group prefer multi-storey apartments with price range of (50 lac - 1cr) & expecting lot of amenities within the gated community.

--contd…

35% of customers are shown their floor preference as Less than 5 floors, 30% prefer 6-15 floors and 20% prefer 16-20 floors

36.7 % of customers have shown their interests that the flats in each floor is limited to Four, 28.3% are upto Six flats and 14.2% are Two flats.

Basic amenities in various aspects such as Water treatment plan (mean 3.96), Power backup (mean 3.93), Club House (mean 3.62), Children’s play area (mean 3.57).

Special amenities -Video Door Phone (mean 4.0), Mini Restaurant (mean 3.20), Wide Open Space (mean 3.18) & Pharmacy (mean 2.78). Builders needs to observe the modern world needs that are highly scaled inside the gated community flats for ease of accessibility. 

Additional amenities - Balcony Garden (4.12), Wide open Space / Park Area (mean 4.09), Sculptures (mean 4.03), Amphi Theatre (mean 4.02).

Most of them prefered -> one-time payment mode (mean 23.3) for maintenance amount than Monthly / Quarterly payments.

FINDINGS

SUGGESTIONS

OMR is popularly known for IT ES (Information Technology Enable Services) sector, Akshaya can concentrate on developing Corporate Real Estate projects and commercial buildings.

Price is the most important factor which helps to take potential decisions to purchase the Flats. Few Customers are not precise on investing more money when meets their exact needs and preferences. Akshaya can maintain quality standards in providing all facilities

Introduce multi level marketing through existing Akshaya Customers As most of the customers preferred more 1BHK and 2BHK types with the

price ranges 25L-50L;50L-75L; Akshaya developers can concentrate more on these segments to increase sales promotion

Builder needs to create an environment with permanent employees in construction work.(instead of rented labor)

Suggesting Akshaya to introduce one-time payment scheme (for a period of years) towards maintenance fees as CORPUS FUND.

As customers are now well educated and have access to the Internet, Property sites such as Common floors.com, 99acres.com or magicbricks.com .

Akshaya has to showcase their successful project details and creating a good brand image through social media marketing.

Customer is very sensitive about the privacy hence Akshaya can concentrate on building each flats of main door should not face each other.

Periodical review/feedback from the existing Akshaya customers would create more value adds to the Akshaya developers

Due to frequent change in the mindset of the customers, more market research needs to be conducted in real estate sector using BIG DATA ANALYTICS & SMAC services towards(STP) customer’s segmentation - in turn Akshaya can target the exact customer requirements and by positioning well in the market place with its competitors.

SUGGESTIONS

THANK YOU