Introduction: Real Estate Business in India
If you want to create a business that can supplement your normal income or if you want to start your entrepreneurial adventure full-time, real estate is one of the best options.
Table of Contents
- Introduction: Real Estate Business in India
- Let’s Look At the Plan in Detail
- RERA Registration Process for a Real Estate Agent
- Association with Realtors Association
- Why You Should Invest In the Real Estate Business
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Everyone, regardless of social standing, desires to possess a home. Given the expanding population, the number of plots/flats purchased or sold in the future is likely to increase. Furthermore, many businesses are eager to expand and are shopping for the ideal location to do so. This suggests that the real estate industry has both current and future growth potential.
Planning is the first stage in launching any business, whether it's a coffee shop or a multiplex cinema. You must be clear with a plan in the real estate sector as well.
What is the plan for your company? Who are you going after? Will your company only deal with residential properties or will it also deal with commercial properties? Aside from the above questions, you'll need to conduct the extensive study, locate a property, and establish a network.
Let’s Look At the Plan in Detail
Aspiring entrepreneurs should sketch out their strategies. What is the company's vision, mission, and short-term objectives? Your real estate company's purpose, for example, could be to provide 'Affordable Housing' or to construct 'Premium Residential Houses.'
After you've defined your goal, the following stage is to build your network. You can become the sole owner of a firm if you can afford to invest some funds, whether you are starting on your own or partnering with others. Alternatively, form a partnership with others who can provide more capital to the company. Partners can provide not just finance, but also their extensive experience.
The next phase is to find properties once the goal and vision have been established. You should have a good network of people who can operate as real estate agents if you own a business. A company plan also guides you in the appropriate route.
Real estate is about more than just construction. It's also about selling real estate. So make sure to establish a brand name, which, if done early in the business, will easily bring in a large number of clients.
Small and medium business owners can't expand into new verticals or businesses with just a few specifics. As a result, thorough research on the issue is required. Furthermore, you should be informed of the numerous rules that govern the real estate company in that particular country/state.
Research and development will aid in the development of novel ways of life as well as more modern construction methods.
Try getting data about your competition as well. Because a successful real estate firm depends on satisfied consumers, acquire their opinion before entering the market. Knowing your competitors' strengths and shortcomings can aid in the development of a sound strategy. Conduct an extensive study about your neighborhood’s preferences and dislikes.
Social Media Presence
Entrepreneurs should create a website before launching a real estate firm. But first, get a professional designer to create your website, which will allow customers to learn more about your company and property.
Customers look at a company's website before buying a home to get a sense of who they are and whether they have a social media presence. This is for checking client feedback. So, before you start a real estate firm, make sure you have a nice website and a strong social media presence.
According to a recent study conducted by the National Association of Realtors, 77 percent of realtors regularly use social media for real estate. This obviously shows that entrepreneurs must actively engage in social media marketing. According to the report, 99 percent of millennials start their home search online.
Social media can also aid in the promotion of your company. Start uploading the plan, floor information, and unit data if you're planning a 5-story apartment, for example. People do more than simply read social media messages; they also share them with their peers.
Marketing Your Business
Any successful firm will have a strong marketing team behind them. As a result, focus on your marketing team and strive to rebuild it if you're unhappy with the current one.
A marketing team not only answers consumers' questions but also pushes them to purchase a home. In the case of commercial properties, their importance is enormous. The group might also develop efforts to raise company awareness. Building a brand not only gives you a reputation, but it also raises your profits.
Conduct market research first, then profile target markets, identify your unique selling proposition, develop your business brand, choose your marketing avenues, set your goals and budget, nurture your loyal customers, and monitor and review, according to the Small Business Development Corporation of Australia.
The most crucial thing to do once you've established yourself as a key participant in the real estate sector is to build your brand and expand your business.
You can attend all events in your neighborhood or the location of your upcoming projects in addition to conducting real estate events. Furthermore, well-placed advertisements and posters aid client memory while also being cost-effective.
Unlike other companies, real estate is one where you can be certain of property appreciation over time. If you buy a house now, you won't be able to sell it tomorrow. So you'll need a lot of patience because appreciation takes time, but you'll be able to earn handsomely from your homes.
The national average appreciation rate for homes is 3%–5% and repairing the outside, redoing the interior, making your home more energy-efficient, updating your home equipment, and increasing your square footage all contribute to increasing the value of your property.
Technology in Real Estate
Technology plays a critical part in all we do. Smart houses are gaining popularity and acceptance in all households, including real estate. Consumers will expect smart houses and anything that is connected in a few years.
You should be aware of the latest technology that can improve your properties as a real estate business owner. Customers are now asking for a virtual tour or using virtual reality before moving in, so they can feel the presence of living in a new home.
According to Forbes, Big Data will be extremely beneficial to the property management industry. The real estate business will benefit greatly from artificial intelligence and machine learning.
Customers will remain loyal for life if real estate companies can provide best-in-class technologies. Understanding real estate technical improvements so aids real estate organizations in accelerating their growth.
Real estate companies should come out to explain legal procedures to customers, in addition to being aware of them when purchasing and selling homes. Customers likely have a lot of questions as first-time homebuyers. Customers will remain satisfied if the legal team is nice.
A homebuyer must complete a property papers checklist, verify the seller's identification, encumbrance, tax payment status, occupancy certificate, construction approvals, conversion, land-use authorization, physical survey, and access to the property before purchasing a home.
RERA Registration Process for a Real Estate Agent
The registration process under RERA varies by state, much like the payments required to receive a license. In Delhi, for example, a real estate agent must complete Form G and submit it to the appropriate body for registration. In Haryana, the application is submitted in form REA-I, whereas in Rajasthan, a written application in form H is required. Agents must additionally send a copy of the following documents for registration together with the completed application form:
- Particulars of the applicant
- Income Tax Returns for the last three years
- Authenticated copy of address proof
- Copy of PAN Card
- Details of registration in any other State
The certificate is normally granted to the agent within 30 days of the authorities receiving the application. Failure to register could result in a daily penalty of Rs 10,000. If the agent is found to be involved in unfair commercial practices, he or she will be sentenced to a year in prison. If the regulatory authority determines that the agent has broken the Act's provisions, the agent's license can be revoked.
Association with Realtors Association
In addition to obtaining a real estate license from your state's regulatory authority, being a member of organizations such as the National Association of Realtors (NAR) is critical for establishing a respectable image and expanding networking opportunities on a national and international level. There are a number of different platforms available to real estate brokers that will assist them to improve their customer recognition and lobbying efforts with government officials. The All India Real Estate Agents Association, the Association of Certified Realtors in India, and other city-specific organizations like Bangalore Realtors Association India (BRAI) and the Association of Real Estate Agents in Mumbai are just a few examples.
Why You Should Invest In the Real Estate Business
From Rs. 12,000 crores (US$ 1.72 billion) in 2019, the real estate industry would rise to Rs. 65,000 crore (US$ 9.30 billion) by 2040. India's real estate market is predicted to grow to US$ 1 trillion by 2030, up from US$ 200 billion in 2021, and contribute 13% of the country's GDP by 2025. Retail, hospitality, and commercial real estate are all experiencing considerable growth, supplying India with much-needed infrastructure.
In just one year, approximately 1,700 acres of land were sold in India's top seven cities. From 2017 to 21, foreign investments in commercial real estate totaled US$ 10.3 billion. Developers anticipate a surge in demand for office space in SEZs after the existing SEZs act is replaced in February 2022.
According to ICRA, Indian companies are likely to raise more than Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, compared to US$ 29 billion raised so far.
From July to December 2020, the office market in the top eight cities had 22.2 million square feet of sales, while new completions totaled 17.2 million square feet. In the second half of 2020, the Information Technology (IT/ITeS) sector dominated with a 41 percent share, followed by the BSFI and Manufacturing sectors with 16 percent each, and the Other Services and Co-working sectors with 17 percent and 10%, respectively.
With the increased demand for commercial and residential spaces, the Indian real estate sector has seen rapid growth in recent years. Institutional investments in the Indian real estate sector are likely to climb by 4% to Rs. 36,500 crore (US$ 5 billion) in 2021, according to Colliers India, a property consultant, driven by rising investor interest in capturing excellent prices during the epidemic. According to a recent report by Colliers India, private equity investments in Indian real estate totaled US$ 2.9 billion in the first half of 2021, up more than twofold from the same period in 2020.
In FY20, SEZ exports totaled Rs. 7.96 lakh crore (US$ 113.0 billion), up 13.6% from Rs. 7.1 lakh crore (US$ 100.3 billion) in FY19.
To make the market more accessible to small and retail investors, the Securities and Exchange Board of India reduced the minimum application value for Real Estate Investment Trusts from Rs. 50,000 (US$ 685.28) to Rs. 10,000-15,000 (US$ 137.06 - US$ 205.59) in July 2021.
Construction is the third-largest FDI inflow sector, according to data supplied by the Department for Promotion of Industry and Internal Trade Policy (DPIIT). In terms of FDI inflow, construction is the third largest sector. Between April 2000 and December 2021, FDI in the sector (including construction development and operations) totaled US$ 52.48 billion
So primarily, do research, organize your finances, and ways to reach customers as soon as you plan a real estate business. To reach as many customers as possible, use all marketing channels, especially social media. If you complete your homework and create a clear business strategy, you will have a huge chance of success in real life.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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