DLF- Finance.doc

8/14/2019 DLF- Finance.doc

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SYNOPSISON

REAL ESTATEINVESTMENTAT

AT

A SYNOPSIS SUBMITTED TOWARDS THE FULFILLMENT OF THE

REQUIREMENT OF THE MBA-FINENCE

SUBMITTED TO SUBMITTEDBY:

IMT GHAZIABAD VIVEK KUMAR SAXENARO.NO. 51100450

UNDER GUIDENCE OF :AMIT VERMA MANAGER FINANCE DLF


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INSTITUTE OF MANAGEMENT

TECHNOLOGY, GHAZIABAD

Acknowledgement

I would like to express my heartfelt gratitude to

my project guide Mr. Amit Verma, Manager

Finance, DLF Gurgaon. Without whom the

completion of this project would not have been

possible.

I also thank my friends who helped me a lot

while doing the research work.

Last but not the least, I would like to thank

persons for putting in their time and effort in

completion of project who helped me in various

ways, directly or indirectly.

At last I would like to grateful to my research projectguide

rs.Amit !erma " all my friends for theirencouraging support.


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#roject $uide %r. Amit !ermaanager &inence

'L&, $urgaon!ivek kumar

(axena)A*

&inance+o. o.

-//0-/

TO WHOMSOEVE !T MA"

#O$#E$

1his is to certify that r. !ivek (ingh, a student ofInstitute of anagement 1echnology, $ha2iabad,

undertook a project on %ST&D" OF EAL ESTATE

!$VESTMET$' at 'L& $urgaon.


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Mr. Vivek Kumar Saxena has successfully

completed the project under the guidance of Mr.Amit Verma , Manager Finance 'L&.. 3e is a

sincere and hard*working student with pleasant

manners.

We wish all success in her future endeavors.

Mr. Amit Verma (Manager Finance)

DLF Gurgaon

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+eview of real estate industry in India and its

road ahead #ricing and appraisal of real estate

Investment opportunities and risk profiling


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ESEA#H METHODOLOG"

+5(5A+43 '5(I$

(electing the method to collect the data is one of the most

critical decisions in research. I had chosen personal interviews as

the method to gather information. All the research is done

through face*to*face interaction.

1he information with regards to the trends in the real estate was

collected by the means of personal interviews. umerous visits

were made to the offices of these real estate developers and

interviews were conducted with the variety of people ranging

from the 5xecutive*arketing to the director of the company.

In personal interviews, I had the opportunity to probe or ask

follow*up Fuestions and interviews are generally easier for the

respondent, especially when you are seeking impression. !arious

brochures of their upcoming projects were collected from their

respective offices.


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#OM*A$" *OF!LEDLF

3istory%

1he 'L& $roup was founded in E0?. It developed some of thefirst residential colonies in 'elhi such as =rishna agar in 5ast'elhi, which was completed in E0E. (ince then it has developed

many of 'elhiGs well known urban colonies, including (outh5xtension, $reater =ailash, =ailash 4olony and 3au2 =has.

&ollowing the passage of the 'elhi 'evelopment Act in E-@, thestate assumed control of real estate development activities in'elhi, which resulted in restrictions on private real estate colonydevelopment. It commenced acFuiring land at relatively low costoutside the area controlled by the 'elhi 'evelopment Authority,particularly in the district of $urgaon in the adjacent state of

3aryana. 1his led to our first development, 'L& Hutab 5nclave,which has evolved into 'L& 4ity, our landmark project. 'L& 4ity isspread over >,/// acres in $urgaon and is an integratedtownship, which includes residential, commercial and retailproperties in a modern city infrastructure with schools, hospitals,hotels and shopping malls. It also boasts of the prestigious 'L&$olf and 4ountry 4lub with night golfing facilities.

Overview:

1he 'L& $roup has charted it next growth steps to retain itsleadership position in India. Already a major player in locationsacross the country, including key metro cities and urban centres,'L&, with over (ix decades of experience, is focusing onstrengthening its lateral and vertical business drivers. 1heseinclude development of innovative business strategies,


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strengthening its professional resources and driving marketpenetration with an ear*to*the*ground approach that is adaptiveto local market needs.

1he group is capitalising on emerging market opportunities to

deliver high*end facilities and projects to its wide base ofcustomers by constantly upgrading its internal skills and resourcecapabilities. In line with its current expansion plans, the 'L&$roup has over


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'L&;s office segment is one of the group;s most admired vertical.early >< million sF. ft. of developed as well as on*going projectsare a significant contributor to the growth of office spaces of themost contemporary architecture. #lans to develop another ?/ percent per

year and expected to reach NE/ billion within the next /years.

As the competition in the market is intense, builders are

going out of their way to be different. (peciali2ed malls havebecome the order of the day.

(imilarly in the home segment, which is driven by theavailability of easy home finance, most builders are trying towoo investors with interesting features, each more temptingthan the other.

+eturns from real estate investment in India have been

traditionally lower than in other Asian countries. 1his ismainly due to the restrained capital flows and the lack of anorgani2ed institutional investment market.

Investment in real estate in India is at a nascent stage. An

investor can invest either directly in property or in shares ofthe listed companies in the sector.


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+eal estate provides returns that are comparable with

returns on eFuities. 3owever, the volatility in prices of realestate is lower than eFuities leading to a better riskmanagement to return trade*off for the investment.

1he risks involved in investing in real estate are primarily todo with future rental depreciation or general propertymarket risk, liFuidity, tenancy risk and propertydepreciation. 1he fundamental factors affecting the value ofa specific property are location, physical characteristics,tenant credit risk, lease length, liFuidity, tax implicationsetc.

India needs a stronger capital market base for propertyfinancing. 1he government and (ecurities and 5xchange)oard of India (5)I through various notifications is in theprocess of easing the norms of investing in real estate inIndia directly and indirectly through foreign directinvestment, through listed real estate companies, mutualfunds etc. With the current real estate boom and the marketbeing flooded with Initial #ublic 9fferof various listed realestate companies in India it will be the best time forinvestors to own a share of the profiting market economy.Legislative framework, revised investment norms and a

favourable investment opportunity, and a clear taxationpolicy will provide the right kind of investing opportunity inIndia in the time to come.

3igh level of transaction cost is involved with the purchase

or sale of a house. 1here are significant brokerage, legal andbanker fees involves given the capital intensity of thesector. )ut, the tax benefits available for housing and realestate seem to have coagulated funds and actuali2ed

investment intentions.

1he latest +eal 5state 1ransparency Index, a study of real

estate market transparency in -? countries and territoriesworldwide, has given India ranking of Osemi transparentPfrom Olow transparentP this has made real estate anattractive asset class for investment.
http://en.wikipedia.org/wiki/SEBIhttp://en.wikipedia.org/w/index.php?title=Initial_Public_Offer&action=edithttp://en.wikipedia.org/w/index.php?title=Listed_real_estate_companies&action=edithttp://en.wikipedia.org/w/index.php?title=Listed_real_estate_companies&action=edithttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/SEBIhttp://en.wikipedia.org/w/index.php?title=Initial_Public_Offer&action=edithttp://en.wikipedia.org/w/index.php?title=Listed_real_estate_companies&action=edithttp://en.wikipedia.org/w/index.php?title=Listed_real_estate_companies&action=edithttp://en.wikipedia.org/wiki/India


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1he introduction of +5I1;s in


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o www.pers$uareyard.com

o www.dlf%#roup.com

o www.unitechlimited.com

o www.db.com

Magazines Ne!s"a"e#s$o &ndia 'oday

o 'oday (roup: )eal *state

o 'imes property

o *conomic times

o +usiness standard

o +usiness world
http://www.dlf-group.com/http://www.unitechlimited.com/http://www.dlf-group.com/http://www.unitechlimited.com/


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+ill passin# preparation of purchase book sales book issuin# of debit /

credit notes = scrutiny of led#er.

urchase =


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Documents

DLF- Finance.doc