In the aftermath of the COVID-19 pandemic, the Indian real estate sector has experienced a seismic shift, necessitating a departure from traditional advertising and sales methodologies. According to a joint report by NAREDCO and EY, the industry is expected to grow from $200 billion in 2021 to a staggering $1 trillion by 2030. This revival underscores the imperative for strategic planning and operational efficiency, spotlighting the indispensable role of real estate advisory services.
Holistic framework
Historically, developers managed projects from A to Z, encompassing everything from architectural blueprints to labour contracts. The advent of game-changing policies like demonetisation, GST, and RERA, coupled with broader industry shifts, has fundamentally altered the real estate landscape. Traditional marketing gimmicks no longer cut it. In their stead, a more structured, data-driven strategy has emerged, emphasising the ‘what,’ ‘how,’ and ‘when’ of effective product distribution.
Real estate advisory services have evolved to adopt best practices, meticulously scrutinising development projects and proffering targeted solutions. These align with the holistic 7Ps of marketing: product, price, place, promotion, people, packaging, and process.
Balancing cost and value
Developers often prioritise construction, neglecting a nuanced understanding of consumer demands. The choice of a home is often the most significant financial and emotional decision a person makes. Striking the right balance between volume, value, and velocity is more than just a financial calculation; it now is also an emotional one.
Approach to decision-making
In the complex world of real estate, developers often find themselves navigating a sea of uncertainties, particularly concerning the market viability and acceptance of their projects. This is where the value of a reputable advisory firm becomes immeasurable. Such firms offer data-driven insights and delve into the emotional and psychological dimensions that shape consumer behaviour. This holistic approach equips developers to make well-informed decisions, whether they’re venturing into ambitious new projects or finalising the financial intricacies of existing ones.
A reputable real estate advisory firm offers invaluable insights into the preferences of target buyers and the specific micro-markets that align with a developer’s project objectives. This multi-faceted approach is further enriched by comprehensive land research, leveraging both primary and secondary data along with unique consumer insights. It is crucial to understand that effective decision-making in this sector isn’t solely data-driven; it’s also moulded by a deep understanding of market dynamics, consumer behaviour, and nuanced human insights. By adopting a systematic, scientifically validated sales and marketing strategy, advisory firms address developers’ most pressing concerns, setting the stage for success.
Leadership and trust
For a real estate advisory firm to flourish, the leadership team must share a unified vision. This vision should focus on tackling the complex challenges in the industry and adopting best practices to strengthen the sector. A client-first approach and the accessibility of promoters to clients, irrespective of hierarchy, are key in building robust trust, forming the bedrock for sustained success in this volatile sector.
In an environment characterised by rapid changes and intricate complexities, real estate advisory services have transitioned from being optional to essential for developers. Offering strategic, data-driven solutions and a comprehensive grasp of consumer behaviour, these services are a non-negotiable requirement for any developer aiming for success in today’s fiercely competitive market.
The writer is Director, The Guardians Real Estate Advisory.
