Things to consider while establishing a Real Estate Business in India

Indian real estate industry has seen exponential growth over the last few years. It has covered a considerable distance and come a long way in becoming the second-largest employment-generating segment in India after agriculture. Traditionally an unorganized sector, it has slowly evolved into an organized one and is fast becoming a recipient of foreign investments; for, real estate business is witnessing a level of saturation in many developed nations and as a result, many global giants are looking for opportunities in developing countries such as India.

Because of its growing popularity, real estate practitioners are using their entrepreneurial zeal towards establishing their own brokerage firms. So, in order to work towards establishing a successful career, it’s essential to start with extensive research, expert planning and constant follow-up. Here are some useful tips to take note of.

Choosing the right business – One can start by owning an independent business but many choose to join a real estate franchise first in order to get the desired training and experience required to run a stand-alone business venture. Besides, working with an established brand name would only help establish more credibility with potential clients.
 
Creating a sound business plan – A business plan must list out the objectives and financial calculations in clear terms to avoid error of judgment later. An exceptional business proposal will also positively affect in getting decent funding from financial institutions.
 
Finding a suitable location – Locating strategic neighborhoods to open real estate business is a smart decision. It’s essential to know the markets that one wishes to cater to and accordingly select a suitable place which has an ease of accessibility for clients.
 
Funding the business – It is imperative to work out the capital at the very onset of developing a business plan. Any aspiring real estate entrepreneur will have to figure out whether he/she has enough financial resources at hand or will more funds be required. Banks definitely can be approached for loans, but the source of trusted family and friends should also be explored.
 
Designing a real estate website – Setting up of a professional real estate website is a key step in attracting clients. Not only will it help market your service/brand, but will also help attract more and more realty shoppers as their search often begins online.
 
Advertising – There are many advertising channels to choose from – newspapers, real estate publications, television, radio, and social mediums. This aids in providing good publicity to a business. In addition, services of a search-engine optimization company can also be used to boost the visibility of a real estate website on search engines.
 

In India, there are a few challenges that the real estate industry faces such as unclear land titles, low presence of industry status, insufficiency of sources of finance, dearth of labor, and difficult procedural processes, to name a few. In spite of this, the industry is warming up to professional standards and functional transparency of systems. As stated earlier, India’s real estate industry is growing at a practically high pace. Therefore, investors wanting to invest in India will benefit from higher returns as compared to any other global market. With this, the real estate industry will soon mature into a well-managed segment and entrepreneurial opportunities will only get bigger and better.

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A Plan for New Agents to Begin Their Real Estate Business

A new real estate agent needs to identify all important factors concerning the new business. Besides he or she needs to enjoy the job with integrity. Here are a few tips to start such a business.

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A new real estate agent needs to identify all important factors concerning the new business. Besides he or she needs to enjoy the job with integrity. After all a person who likes to sell real estate may also enjoy possessing one! So instead of working with some other agent and sharing commission, one can own their individual real estate company.

As an owner one needs to take charge of all supervisory duties. To top it all there must be sufficient finances to run a fully-fledged office. Keeping the above factors in mind, here is a thorough plan on how to start a real estate business.

  • It is important that a budding real estate agent has sufficient funds; for this the person can save up money that can cover all start-up costs. This spans across renting or buying an office space, office equipment, specific logo design, an catchy office sign board, numerous yard signs, good website design costs and last but not the least money for insurance.

If possible money needs to be set aside for covering all operating expenses. This is to ensure that for at least 6 months the office functions without any hurdles. This fund should cover all rents, advertising costs, dues, utility expenses, online fees and other miscellaneous expenses.

  • Get property dealing license as soon as possible; only then one can do property dealing in India. All terms, conditions and requirements for this license varies from region to region. The basic fee for property dealer license in Haryana is Rs.25, 000 and for companies the fee is Rs.50, 000. (In Haryana an agent without a proper license gets fined up to Rs.50, 000; companies are fined up to Rs.1 lakh.)
  • One needs to register their business name with the Registrar of Companies (ROC). A list of six names can be submitted and then it is time to register with Registrar of companies. This is for getting the certificate of incorporation and register for Value Added Tax (VAT) through the Sales Tax Officer.
  • Next is to choose for a site or location where the office will be set up. It should have ample parking for agents and clients. Then associate with local board of realtors as it is good to join as many housing boards as possible. Some examples are the Orissa State Housing Board, Madhya Pradesh Housing Board and Karnataka Housing Board. Also join the local Chamber of Commerce by submitting an application form and a fee of Rs.500.
  • If possible, outsource the website building task to a professional web designer. The aim is to set up a professional-looking website. This is because maximum home owners these days start with an online search. On the site list down all properties that are to be sold in India. Actually it is a great way to market the new real estate business.

Hopefully the above steps will help a brand new real estate agent to start a fully functional company in India. It is just that he or she needs to follow all the above steps carefully.

Looking to buy an apartment in India?

Purchasing apartments can be a daunting task for even the most experienced real estate buyer. But the property market in India can be especially tricky. Here is a guide to help you.

Flipping real estate is all the rage now, with the housing market back on the rise and reports of home prices going up across the board. This is the case not only in the United States, the root cause of the subprime mortgage crisis that caused a global recession, but in countries abroad like India as well. Increasingly, smart buyers are looking to purchase real estate in India as a means of making a sound investment in the future. Not only will these apartments be used by families for years and years to come, but in helping these families find a home you will also be able to make a significant profit for yourself.

But where is one to start looking, especially if one is unfamiliar with current trends in real estate? The newspaper sections on apartments for sale are not always the most helpful, even though at one time not too long ago this was the go to resource for people looking to buy real estate. With the internet, now anyone can look to buy property in literally any country, no matter where they are. So, this article will focus on techniques for searching online for apartments for sale in India, with a particular emphasis on property in Mumbai. Remember that any expertise you may have in buying real estate in other countries will not be of particular use in India. The market there moves much more rapidly than elsewhere, and it can be overwhelming to people who are not used to its pace.

The first thing you should decide on is the neighborhood you would like to purchase your property in. Narrowing your search down geographically in this way can significantly simplify the process of looking to buying an apartment in India. The first place many people look, and one of the most popular neighborhoods today in Mumbai is known as Colaba and Nariman Point. At the southern most location in Mumbai, this area of the city is also one of the oldest, with many buildings from the colonial era of Mumbai’s history. This means that there always plenty of tourists in this area, which brings not only an influx of cash but also an influx of crime. These are important considerations to keep in mind. It is this neighborhood where you can find the Taj Mahal Hotel and the Gateway of India, two of the most iconic landmarks in the city.

At the other end of the city is North Mumbai, which is close to Bandra. This is mainly a commuter area of the city, where many Indians go to work daily. This can make owning an apartment in the area somewhat tricky because of the frequent transit problems that come along with so many people moving through so often. There is plenty to do here, however.

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