PAST & FUTURE OF REAL ESTATE IN INDIA AND CUSTOMER ACQUSITION IN IT

ABHIMAN BEHERA

Real estate is a legal term that encompasses land along with , improvement to land , such as buildings , commercial buildings and other site improvements that are fixed in location. Real estate business is a real business as no business is possible without it. Real Estate Sector as a whole contributes about 7% to GDP, employs around 32 million people directly or indirectly and accounts for about 40% of gross investment.

Till

1960 , sector was unorganized and perceived as risky and speculative business.
Developers

mainly contractors and sub contractors were funded from money lenders.
Customers

accumulated funds from their own savings and sale of land and ornaments.
Banks

did not provide funds or mortgage finance.

Developers
HUDCO

were mainly contractors and sub contractors.

was set up in 1970 and HFI in 1977 to finance the housing sector.
In

1988, NHB , was set up to channel resource for finance, national housing policy was later adopted by parliament in 94.

Developers
HUDCO

were mainly contractors and sub contractors.

was set up in 1970 and HFI in 1977 to finance the housing sector.
In

1988, NHB , was set up to channel resource for finance, national housing policy was later adopted by parliament in 94.

Urbanization,

population.
Lower

growing population , migration, youth

cost of credit , government encourage commercial banks to provide loans at cheaper rate of interest.
Higher

levels of export.

Favorable Public

business and regulatory regime.

private partnerships(PPP).

Residential 95%

property coming up as investment option.

of investors surveyed prefer to take the SPV route for investment

Liberalization
Economy

of Indian economy.

integrated with foreign players.

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

GROWTH OF REAL ESTATE IN LAST DECADE

Rising Tourism

Rise Of Middle Class

Real Estate

Decline of Joint Families

Easy Availability of Finance

Fiscal Policy

Rising FDI

Real Estate

Strong Demographics

Rise of Middle Class

First Time Buyers

Medical Tourism

Real Estate

International Tourism

Developme nt of new Stream of Business

The The

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

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 a rapidly increasing consumer class.
After

the 200809 global economic slowdown, the Indian real estate industry is now charting a path to recovery.

Increase Age

in home loan disbursements at a CAGR of 30%.

profile of home buyers is decreasing.

Premium

and super-premium housing is growing.

urbanization 27.8% as per 2001 census.

Increasing Quality

of housing is improving. of houses is increasing

Ownership

In recent years, the industry has evolved from a highly fragmented and unorganised market into a semi- organized market. The sector can be divided into residential, commercial, retail and hospitality asset classes.
Real Estate Sector

Commercial Office Space

Residential Space

Retail Space

Hospitality Space

Special Economic Zones (SEZs)

times the umber by which GDP will have multiplied by 2030

590

million peoples will leave in cities, nearly twice the population of USA today
270
70

million people net increase in working age population

% of net new employment will be generated in cities

700

900 million square meters of commercial and residential space needs to be built every year

Residential Trend 95%

property coming up as investment option.

towards township projects.

of investors surveyed prefer to take the SPV route for investment. 42% of the respondents expressed that the presence of IT/ITeS industry has an impact on the investment decision.
Around

45% of the respondents ranked economic & industrial profile as the most important parameter while evaluating city for investment

CUSTOMER ACQUISITION
Rule #1 - Without Customers - Businesses Fail Business must understand customer behavior. Business marketing strategies must be designed around customer behaviors, needs, supplies and demands.

Rule #2 - Without Profits Generated By Customers - Businesses Fail Profits must be sustainable over a specific initiative life cycle. Business must foresee, forecast and build a profit model that takes into consideration all possible contingencies.

Five Steps To Customer Acquisition

Identify imminent buyers/sellers with purchasing/selling intent

Target these potential clients Capture their attention Convert them into clients Retain them, providing lifetime value

The ABCs of Customer Acquisition

Real estate professionals must understand their customers behavior in order to influence, acquire and serve them effectively. When it comes to understanding customers there are six basic stages that they pass through, which affect how they behave: Unaware prospect Aware prospect Interested prospect Trial customer Repeat customer Loyal customer

Customer Loyalty Doesnt Have to be Expensive Creating loyal customers cost less and adds more value Profiling Existing Customers Helps To Find Better Customers

AFFORDABLE SOLUTIONS
Many customers these days expect discounts in exchange for their loyalty, with 60% of extrinsic or hard rewards such as discounts and freebies as their top reason for enrolling in loyalty programs

THANK YOU