Real Estate- Rebuilding strategies with Information Technology

Real estate industry is currently estimated to be INR. 2100 billion, and is growing at the rate of 30%. This industry contributes 4 % of the GDP in Indian economy as on date. Growing business confidence among the entrepreneurs and corporate houses after recession is now taking a driving seat for its growth. Gap between demand and supply of quality real estate is adding fuel to the growth.

With an anticipated growth in FDI, commercial office business is shifting their business model of Sales mode to service mode, regional players are planning to expand their operation to national level by shifting their focus from Tier I cities to Tier II & III.

Rapid urbanization, increase in urban population and increase in per capita income of urban population had added wings to residential business to grow, even though this is the most unorganized sector in this industry. There are still many unexplored and unexploited segment in this business in :

Logistics & Warehousing - With the booming trade internationally and domestically, number of MNCs are establishing their operations in India. Outsourced warehousing and Logistic services require large infrastructure and engineering projects.

Healthcare Infrastructure - Industry experts expect steady growth in Healthcare industry, this give way to another avenue for the reality players to explore their opportunity in infrastructure outsourcing.

Education Infrastructure - Industry demands world class professional with strong knowledge base which in turn opens up big opportunity for Education Industry (termed in business language). Education Industry is a huge untapped potential market with low competition but demand high quality infrastructure.

Low Cost Housing - Almost 72 % of Indian population are still rural resident. Favorable situation like increase in nuclear family, easy access to finance had increased the % of family opting for owned house over rented house. Thus giving an open ground to realty players.

“Innovation is the Key to Success” this is true for every business and Real Estate Industry is no exception to it. Exploring new segment, new methodologies, new strategy, new opportunity is expected from a business leader who sits on driving seat. But a billion dollar question is :“Are you really ready for it?”

Growth is always a sweet dream but growth bring complexity in organization, in system and almost in every operation of business which can be nightmare. First step for any organization, aspiring growth is to get organized with a system in place. Business leader always prefer to be out of daily operational complexities so that they get a space to think out of the box. Atomizing daily business operation serves the purpose. Today about 90 % of decisions are taken on a quick impulse or `gut feeling' by smart business leader, one’s instinct might have helped in the past it could be pure co-incidence. Getting the facts right, before making any crucial decisions is necessary but, on demand & timely availability of trusted facts and figures is still a point of concern. We at Greytrix help small and medium enterprises to provide right information at right time in right place.

Regulatory & Document Management – Complex and stringent laws and regulation makes it difficult to maintain documents and legal proceeding during initial stage of the project be it commercial or residential. This results in dependency on specialized resources or time consuming activity. Project estimation is majorly effected by time factor and delay at any stage can effect the profitability of project. Workflow based document management handles the critical documents and legal procedure by its own, eliminating resource dependency.

Land Management & Development – Land procurement and development involves legal activities. Since these proceedings varies from case to case, involvement of legal cell is inevitable but management at any point of time is unable to anticipate the time line between land identification and project kick start because of unavailability of information. On screen, on demand detailed information to management helps to plan the further course of action on project.

Project Management – Pricing strategy on any project depend majorly on total project cost estimation. Prime focus of the project manager will be to finish the project on budgeted time and within budgeted cost so that profitability can be maintained. Sometimes it becomes difficult to allocate certain common cost during the project hence project variance report may not be full proof. Project and Job Costing addresses this issue and allocate cost accordingly. Thus management at any given point can view the cost incurred at project level which can be again drilled down till single unit level.

Customer Management – Investment in real estate is common among High Net-worth Individual (HNI), developers often see customers repeatedly coming back to them during new projects. Keeping track of such customer and floating information to this group is a major task today. Customer Relationship Management help the organization to achieve customer satisfaction and customer delight through such automated services.

Sales Management – Sales lead time in any project is longer thus sales team has to maintain prospect’s information from day of project or scheme declaration till handover of last unit. Sales in real estate is not just a sale of one unit but it involves customer servicing , document management, legal contracting, etc. Sale automation help the executives and managers to see the prospect pipeline at any point of time and take appropriate timely action to close the deal.