Friday, 10 January 2014

IT in Real Estate “A Market within a Market”

Indian Real Estate sector in 2013-14 witnessed mixed growth rate than what was predicted at the start of the financial year.  The price correction across segments of didn’t happen as predicted but the volume of number of transaction had come down considerably. In this kind of mixed market scenario those Real Consultant who had focussed more on Resale and Leasing along optimizing their business processes with help of IT had outshined the competition. In last one year a trend had been observed that those companies who had successfully put in proper IT systems whose base had been an ERP or CRM had increase their employee count steadily along with increase in per employee revenue.

Cloud based ERP systems had major inroads last few quarter in Real Estate vertical, the driving force mainly was the new generation digital consumers who always demand services at the finger tips be it on the mobile or laptop. India has undergone a demographic transition in recent years and is gaining economically from the changing age structure. India’s youth population (15-35 years) comprises nearly 40 per cent of the urban population they fast replacing the prime decision maker in a normal household. SME in Real Estate i.e. the Consultant have lately identified this segment and had changed .

Understanding their consumers well, the New Age Real Estate Consultants today, are happy to bring in professionalism and transparency to their work, aided by cloud CRM solutions like Salesforce and RealtoExpress. Consultants are immensely getting benefitted as such softwares are not only helping them in bringing more efficiency, but is also helping them grow almost double up their profits in lesser time spans. This in turn is giving an impetus to deliver the very best for their new group of young & affluent consumers.

Other IT systems to manage the campaigns, transaction, accounts had also gain popularity. But the SME are looking forward for a single solution which covers their end to end business process starting from managing their contacts, leads, Inventories, Project, Bookings and Transactions. Integrated IVR solution with CRM had also created a niche among the Consultant.

Traditionally CRM / ERP solutions had been targeted for large scale enterprises who were able afford and maintain a dedicated IT team. Legacy solution always required a dedicated team for development and maintaince for each setup. But with the advent of broadband and latest cloud technologies innovations is ruling the market.

Being an SME on premises legacy systems never fitted into the cost model of the organization. SaaS had changed this game. It made lot easier and cheaper to opt and deploy enterprise level software for an SME organization. In most of the cases the implementation and ongoing maintenance cost is 60% - 90% cheaper than those legacy solutions. SMEs can start small and then scale up as their business grows. E.g. initially if an SME has 5-10 employee then he can subscribe to that many SaaS user account and later add on as the business and employee number grow. 

 Marketing has always been one of the key of success of an organization. To reach to new generation target clients Real Estate consultant had started using international service providers like Amazon, Google and  Facebook.  Though these services were generic in nature, the usage of such platform had opened up new opportunity for IT solution providers to develop niche products for Real Estate vertical which covers all kind of campaigning. 

Business Networking Solutions like has come into existence where this B2B platform allows verified consultants only. Such specialized platform allows consultants to talk across geographical boundaries and close deal which was earlier never possible in a click of a button. platform also offers a rating system where every member is rated based on their activities. Thus if SME need to contact and unknown associate he can rely on the platform rating to judge the reliability of the person who is offering him a deal.

This kind of solution also brings in Region specific project information where each and every information is preloaded in the platform. This helps in reducing the information fragmentation which is currently a trouble area in the legacy systems.

Because of the current market scenario where the business is not happening as per the expectation the whole value chain is looking for innovative IT solution which will help each players to become efficient and productive. 

1 comment:

  1. Nice article on IT in real estate. Information Technology today plays major role in real estate industry. All the real estate developers are using software like real estate CRM, real estate ERP, construction ERP and many more to increase the productivity of their projects. Most of the developers are using CRM for real estate to manage their customer relationship.