Real Estate in India by Abhiman

8/12/2019 Real Estate in India by Abhiman

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PAST & FUTURE OF REAL ESTATE IN INDIA ANDCUSTOMER ACQUSITION IN IT

ABHIMAN BEHERA


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Real estate is a legal term that encompasses landalong with , improvement to land , such asbuildings , commercial buildings and other siteimprovements that are fixed in location.

Real estate business is a real business as nobusiness is possible without it.

Real Estate Sector as a whole contributes about7% to GDP, employs around 32 million peopledirectly or indirectly and accounts for about 40% ofgross investment.


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Till 1960 , sector was unorganized and perceived as risky and

speculative business.

Developers mainly contractors and sub contractors werefunded from money lenders.

Customers accumulated funds from their own savings and saleof land and ornaments.

Banks did not provide funds or mortgage finance.


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Developers were mainly contractors and sub contractors.

HUDCO was set up in 1970 and HFI in 1977 to finance thehousing sector.

In 1988, NHB , was set up to channel resource for finance,

national housing policy was later adopted by parliament in 94.


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Developers were mainly contractors and sub contractors.

HUDCO was set up in 1970 and HFI in 1977 to finance thehousing sector.

In 1988, NHB , was set up to channel resource for finance,

national housing policy was later adopted by parliament in 94.


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Urbanization, growing population , migration, youthpopulation.

Lower cost of credit , government encourage commercial

banks to provide loans at cheaper rate of interest.

Higher levels of export.

Favorable business and regulatory regime.

Public private partnerships(PPP).


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Residential property coming up as investment option.

95% of investors surveyed prefer to take the SPV route forinvestment

Liberalization of Indian economy.

Economy integrated with foreign players.

during period of 2002-2007 Sector commanded 30 % y.o.ygrowth.


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GROWTH OF REAL ESTATE IN LAST DECADE


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RealEstate

RisingTourism

Decline of

JointFamilies

EasyAvailability of

Finance

Rise Of

MiddleClass


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RealEstate

First TimeBuyers

InternationalTourism

Development of newStream ofBusiness

MedicalTourism


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The current contribution of real estate to Indias GDP is about 7 %.

The real estate sector is one of the highest FDI attracting sectors in

India, having recorded FDI inflows worth more than 2.8 billion

between 2000 and 2009.

Growth has been driven primarily by the IT & IteS sector, with an

increase in the demand for office space, growing presence of

foreign businesses in India, global strides of Indian corporate and arapidly increasing consumer class.

After the 200809 global economic slowdown, the Indian real

estate industry is now charting a path to recovery.


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Increase in home loan disbursementsat a CAGR of 30%.

Age profile of home buyers is decreasing.

Premium and super-premium housing is growing.

Increasing urbanization27.8% as per 2001 census.

Quality of housing is improving.

Ownership of houses is increasing


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In recent years, the industry has evolved from a highlyfragmented and unorganised market into a semi- organizedmarket.

The sector can be divided into residential, commercial, retailand hospitality asset classes.

Real EstateSector

Commercial

Office Space

Residential

Space

Retail

Space

Hospitality

Space

Special Economic

Zones (SEZs)


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5 times the umber by which GDP will have multiplied by 2030

590 million peoples will leave in cities, nearly twice thepopulation of USA today

270 million people net increase in working age population

70 % of net new employment will be generated in cities

700900 million square meters of commercial andresidential space needs to be built every year


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Residential property coming up as investment option.

Trend towards township projects.

95% of investors surveyed prefer to take the SPV route forinvestment.

42% of the respondents expressed that the presence ofIT/ITeS industry has an impact on the investment decision.

Around 45% of the respondents ranked economic &

industrial profile as the most important parameter whileevaluating city for investment


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CUSTOMER ACQUISITION

Rule #1 - Without Customers - Businesses Fail

Business must understand customer behavior.

Business marketing strategies must be designedaround customer behaviors, needs, supplies and

demands.Rule #2 - Without Profits Generated By Customers

- Businesses Fail

Profits must be sustainable over a specificinitiative life cycle.

Business must foresee, forecast and build aprofit model that takes into consideration allpossible contingencies.


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Five Steps To CustomerAcquisition

Identify imminent buyers/sellers with

purchasing/selling intent

Target these potential clients

Capture their attention

Convert them into clients

Retain them, providing lifetime value


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The ABCs of CustomerAcquisition Real estate professionals must understand

their customersbehavior in order to influence,acquire and serve them effectively. When itcomes to understanding customers there aresix basic stages that they pass through, whichaffect how they behave:

Unaware prospect

Aware prospect

Interested prospect

Trial customer Repeat customer

Loyal customer


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Customer Loyalty Doesnt Have to be

Expensive

Creating loyal customers cost less

and adds more value

Profiling Existing Customers Helps ToFind Better Customers


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AFFORDABLE SOLUTIONS

Many customers these days expectdiscounts in exchange for theirloyalty, with 60% of extrinsic or

hardrewards such as discounts andfreebies as their top reason forenrolling in loyalty programs


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THANK YOU

Real Estate in India by Abhiman

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