#8 Tips to Succeed in Indian Real Estate Market
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The real estate segment has been one of the most recognized sector in the world. In India, the real estate market stands as the second largest employer next to agriculture. The real estate segment has been divided in to four different categories viz housing, retail, hospitality and commercial. Considering a rapid shift in the life style of the younger generation, dominance of nuclear families and increase in the disposable income, the real estate sector continues to soar high in the India market.
According to reports, the Indian real estate market is supposed to reach a whopping of $180 billion by 2020. The housing segment alone would contribute to 5-6 per cent to the country’s GDP.
Contributing to this growth is the robust development of the retail, hospitality and the commercial real estate sector. The market size of the same is supposed to increase at a CAGR of 11.2%.The recently launched Real Estate Regulator Authority (RERA) has created a huge potential in the Indian real estate market. Keeping in mind the lucrativeness of the sector, below mentioned are 8 tips to succeed in the Indian real estate market.
Knowing Your Market
Since the real estate market is the second largest in the country, it becomes essential for any entrepreneur to have a sound knowledge about the same. This includes various aspects like understanding the customers, the trends that are followed in the industry, direct competitors, and suppliers of raw materials as well as local pricing strategy that has been followed. All these points add up to a sizeable advantage in order to succeed in the real estate market.
The very first step that needs to be taken by an entrepreneur prior starting any venture is to do a thorough market research. It should be noted that market research is not only important in the inception phase but also at a point when a particular brand reaches a level of excellence, as there might exist a need of an alteration in the product that they are offering. The Indian real estate industry is also highly research driven due to its diversity and the unique behavioral pattern. Having done a thorough research gives you an edge in adapting to the local market conditions and being updated with the global trends.
In order to sustain in this cut throat competition it is significant to understand about what your competitors are up to. Competitor analysis will not only create a positive impact on your future plan but also will help you in gaining an edge over your competitors. The competitor analysis also gives you an in-depth analysis of the strengths and the weakness of your competitors which gives you a huge benefit in terms of deciding your strategy. Hence competitor analysis is considered a very significant approach in order to meet success in your business.
Before starting a particular business it is of utmost importance to understand the demand of a particular product or service. Considering the cultural diversity in India, festive season has been the most lucrative period which has always been a predominant factor soaring the demand. For eg it has always been observed that, in the real estate segment leveraging important festival has proved beneficial for many years.
This is a step that needs utmost attention. Once a thorough market research is done and the findings are presented, the second step gradually comes to analyzing the report which would give a clear idea about the ongoing trends in the market. For eg a recent study showcased that there has been a significant increase in the co working space across all Indian metros along with tier two cities. This segment is slowly but surely gaining grounds in India.
This is tricky, but a real estate entrepreneur must be able to envision the growth of a particular area and invest in the land at the right time. For Eg: Hinjewadi in Pune has seen a steady growth in commercial spaces thus raising the demand for residential projects, as people prefer staying close to their place of work. A wise real estate entrepreneur should have invested in land at that area and then leveraged the same when demand grows thus maximizing profits
The government of India has taken various initiative to encourage the growth of this sector. The recently launched real estate regulatory authority (RERA) has created a huge impact in the sales of the real firms. The ministry of housing and urban poverty alleviation has sanctioned the construction of 84,460 affordable for the urban poor in five different states. This has created a huge opportunity for the players operating in the real estate market.
Pricing and location are probably the most important aspects when it comes to investing in a property. It is imperative that an entrepreneur analyses competition and location pricing, and based on the two, propose attractive rates that appeal to the buyer!