How real estate advisories are shaping India’s market future
Ram Naik
India's real estate sector is on a trajectory of unprecedented growth, poised to contribute substantially to the nation's GDP. Projections indicate a market size of a staggering US$1 trillion by 2030, a significant leap from $ 200 billion in 2021. By 2047, the sector is envisioned to expand to a colossal $ 5.8 trillion, elevating its contribution to GDP from 7.3% to 15.5%. This rapid expansion is fuelled by various factors, including surging demand for residential properties, significant infrastructure development, and supportive government policies. Real estate advisories also play an important part in this development, advising developers and investors and facilitating new opportunities. This growth presents immense opportunities for homebuyers to invest in a rapidly evolving market.
The strategic role of real estate advisory services
Through the provision of insightful and helpful counsel, real estate advisories enable developers to understand market trends, maximise product offers, and execute successful marketing strategies—all of which are critical components of strategic market guidance. Project management, product planning, sales and distribution, campaign design, and pricing approval are among the additional services they offer.
Advisories serve as a vital conduit between developers and channel partners guaranteeing seamless operations and enabling the successful sale of unsold real estate inventories in conjunction with the launch of new projects. This is particularly significant in a market where the premium real estate segment has accumulated considerable inventory since 2022. For instance, there are currently 142,063 units priced between Rs 5-10 million, 143,595 above Rs 10 million, and 198,013 units priced between Rs 0-5 million awaiting buyers. Real estate advisories are key in addressing this surplus by leveraging their expertise and networks to facilitate sales via marketing and channel partner efforts.
Enhancing market efficiency and transparency
Real estate advisory services leverage their strong network of channel partners who possess the infrastructure, customer relationships, and market expertise required to sell properties effectively.
Local channel partners, in particular, bring a distinct advantage with their in-depth understanding of local market dynamics and customer preferences. This localisation leads to improved customer satisfaction, as buyers feel their specific needs are being addressed with more tailored solutions.
The real estate advisory firms also play a key role in linking builders and channel partners to drive project sales. After a sale, the developer’s Customer Relationship Management (CRM) department manages channel partner relations and payouts, while advisories help facilitate smooth transactions.
Building a robust ecosystem
The developer's CRM team oversees the process of client and channel partner management, which is the cornerstone of a robust ecosystem. By making the standard processes and procedures clear to all parties, accuracy and transparency are promoted which improves visibility into partner activity and sales. Compliance and efficient execution are supported by routine evaluations and audits. This clarity, coupled with regular communication and updates, fosters a collaborative environment where all parties work towards common goals. Incentive structures are also effective in motivating partners and recognising top performers.
To create a truly sustainable and thriving real estate ecosystem, collaboration and trust are paramount. Developers, advisory firms, and channel partners must work in harmony, sharing information, aligning goals, and fostering a culture of transparency. Clear performance metrics, fair compensation models, and regular communication channels are essential for building enduring partnerships. They ensure that properties reach a wider audience, leading to quicker sales and optimised pricing. Moreover, their involvement in lead tracking and commission allocation helps to streamline processes and reduce disputes.
Real estate advisory firms are the catalysts driving India's property transformation. Their expertise, coupled with technological advancements and a collaborative approach, is reshaping the industry. As the sector continues to evolve, the role of these firms will become even more critical in shaping the future of India's urban landscape.
