The Indian real estate industry has been witnessing significant growth over the past few decades, driven by factors such as urbanisation, a growing population, and an increase in disposable income. The industry has become a major contributor to the country’s economy, accounting for a significant portion of the GDP. The industry is highly fragmented, with several large players dominating the market along with many small and medium-sized firms. The residential sector is the most active, followed by the commercial and retail segments.
The COVID-19 pandemic has significantly impacted the Indian real estate industry, with construction activities coming to a halt and property sales taking a hit. However, the industry has shown resilience and adapted to the changing market conditions, with developers adopting new technologies and business models to cater to customers’ evolving demands.
Additionally, India’s real estate sector is predicted to touch Rs 65,000 crore by 2040 and accounts for 6% of the country’s GDP.
In short, India’s real estate sector is estimated to be worth $1 trillion by 2030 and thus poses a lucrative opportunity for one to build a startup in the industry. Without further ado, here is how you can conceptualise and build your startup –
The first & most important step –
1. Getting your real estate license: You need to have a real estate license as per the state government, which is issued by the district’s deputy commissioner generally. To get the application for the license, you can visit the nearest sub-register/ municipal corporation. The fees for this are different and vary from state to state. For any company or society, the fee is INR 50,000 for the license, and for an individual, it is INR 25000.
2. Identify your niche: Determine the type of real estate business you want to start. This could be residential, commercial, or industrial real estate.
3. Conduct market research: Conduct market research to understand the current trends, competition, and demand in the real estate industry.
4. Register your business: A good percentage of real estate agencies are unregistered companies, generally sole proprietorships or unregistered partnerships. However, in order to gain consumer trust and battle huge online real estate broker sites, the real estate brokerage industry is being restructured, standardized, and upgraded to provide a high standard. As a result, it is crucial for anyone launching a real estate brokerage business to register as a Private Limited Company (PLC) or a Limited Liability Partnership (LLP).
5. Make a business plan: Invest all your skills into designing this plan, ensuring that the concerns you have highlighted are satisfactorily resolved and that there is room for progress. This plan should include your company’s structure, budget, finances, and workforce recruitment strategy.
6. Build a team: Assemble a team of professionals, including real estate agents, lawyers, accountants, and other experts, to help you run your business effectively.
7. Develop a marketing strategy: Create a marketing plan that targets your desired audience through online and offline channels such as social media, print media, and billboards. Build a professional website and social media pages to showcase your properties and services.
8. Start small: Begin with a small number of properties and gradually expand your portfolio as your business grows.
Unconditional government support for the real estate industry –
Post-pandemic, the government has offered support to revive the industry in the form of many schemes and grants to help entrepreneurs. The Ministry of Housing and Urban Affairs, Government of India, sanctioned a total of 2,17,900 new dwellings in six Indian states under the Pradhan Mantri Awas Yojana (Urban) (MAY) to promote low-cost housing in the country’s urban regions.
In conclusion, the real estate industry is a challenging and rewarding industry to venture into. Armed with a good plan, a good team, and research of the current trends and development – one can build a successful real estate startup and contribute to this ever-evolving sector.