This research work is related to customers and investors research study, titled “CUSTOMERS OR INVESTORS PERSPECTIVE ABOUT INVESTING IN REAL ESTATE” in high tech cities like Greater Noida, Ghaziabad, Noida and New Delhi.
The research addresses the factors influencing the customers and investors decision to allocate resources to real estate. The survey includes a sample of major customers and investors via a questionnaire. They answered question about their target real estate allocation, their plans to increase or decrease their allocation, the major reasons for investing in real estate, and their view point on major factors which are to be considered by a company before starting a company.
The major empirical findings are:
- Customers/Investors have a short history of real estate investment but are currently increasing their allocation to the real estate, more so than Equities, Debt, and Commodities.
- Legal and regularity risk, Hard to determine
- the best opportunities and Risk of poor professional advice are given as the risk involved for real estate investing.
- Despite of developers investing their large part of funds on Entertainment centers like Shopping Malls, Multiplexes etc. large part of customers prefer to invest in Residential Projects such as Plots , Group Housing, and Townships.
- Residential Property is gaining as an attractive mode of investment of middle class people leading to growing demand.
- With the shifting of more and more companies and offices to the suburbs, growth in suburban residential real estate market has also been witnessed. Lavish townships with good quality construction replete with luxurious amenities and facilities are now coming up. Survey reveals the factors or specifications needed by the customers where they are investing their funds and also the lack of facility in their previous or current residence.
- Despite the billions of money spent on brand advertising, customer's rate - strength as a weak influence at best on their purchase decisions.
- The most important factors influencing the real estate allocation decision are statistical estimates of risk and return, advice from external consultants and long term historical performance.
During the course of this research work I was provided with an opportunity to interact with the number of people to receive their responses for questionnaire gave a glimpse of the behaviors of people and how a researcher should proceed to elicit the responses comfortably. The experience gathered during this research study will help me to understand the real estate sector and customers perception about investing in real estate.