Wondering how to start a real estate business in India of your own? Look no more as I give you a detailed account of it.
The real estate business in India is rapidly climbing the ladder to become one of the most advantageous industries to have a business in.
It is predicted to rise to USD 1 trillion by 2030. It is booming at a breakneck pace, drawing people from all walks of life who want to establish their own businesses. This is definitely one of the most globally recognized sectors in the world that comprises four sub-sectors.
The growth in real estate is also because of the recent increase in demand for office spaces along with both urban and semi-urban accommodations. In India, real estate is the second-highest employee generator and it also attracts a lot of Non-Resident Indians (NRIs) for investment.
After this article you would get the idea about how to start a real estate business, but what about the management? How will you manage your real estate business? Click the blue button below for answers.
Also check out this screenshot, it might help you. manage your real estate business.
It is amazing to see this rapid growth in this sector as it has grown tremendously over the years. The situation earlier wasn’t this rosy and real estate wasn’t doing that well. But in the past few years, real estate has grown and how. People are always on the lookout to invest in a property and want to buy more and more.
So, if you want to jump into this real-estate business in India and build a place for yourself, it is a smart option to perform research first. This is definitely going to be a very hard-working business but also the most highly paid one.
If you set up a business that is efficient and employees that are hard-working, you are sure to have a successful business. You can focus on just one city at the present and get your hold in it and later on, once you start to do well, you can shift to other cities in the country.
There is no shortage of real estate in our country as new and new places keep coming up because of the high demand hence you would never have a problem getting yourself some listings.
This article sheds light on some important steps that can guide you in accomplishing your goals and starting a real estate business of your own.
An Overview Of The Indian Real Estate Scene
A real estate business in India is one that specializes in the sale, purchase, maintenance, or real estate investment.
If you wish to reach your financial goals while remaining pressure free after retirement, it is time to explore establishing an investing company in real estate.
It will never be simple to start any business related to real estate in India, but with powerful and strategic planning, all would be worth the effort.
Entrepreneurs can always employ tools to make operations smoother as well as educate themselves in the field to surface as champions and eliminate some competition.
The real estate business in India is made up of a diverse group of people who either run their respective businesses or are affiliated with well-known corporate giants.
From constructors to raw material vendors, planners and engineers to brokers and realtors, everyone is a part of this flourishing sector and driving its prosperity in their own different manner.
Whether you are keen to understand more about the Pune real estate market or serving consumers seeking to purchase property in Bangalore, you will have to go through the same process as your competitors in Noida, Gurgaon, Ahmedabad, and Mumbai.
Real Estate Business Ideas In India
At any given moment, the real estate business in India is engaged with multiple operations. In most cases, real estate is thought to be just concerned with construction and properties, but there is a lot to the construction sphere than one may assume.
Real estate has four types that you can pick from when deciding to start a business. They are listed below.
This is deemed to be the real estate sector’s backbone. The land includes the purchase and sale of undeveloped unoccupied estates with no infrastructure.
Here, the property is quickly transformed through building activity, increasing its value. It allows people to stay on vacant property.
Residential, as the name suggests, includes housing and is probably the most advantageous type of real estate. The hike in population and development of urban centers has led to a demand for houses in the market.
Houses for smaller families, duplexes, studio apartments, townships, etc are all a part of it. Its popularity also makes it a familiar sector in the real estate business.
Real estate also includes facilities that are planned to build and utilized for commercial reasons. This involves building, selling, and purchasing commercial office spaces, shopping centers, retail stores, theatres, and hospitality – hotels, resorts, cottages, etc.
Industrial real estate mainly has land and pieces of property that shall be put to industrial use, such as godowns, warehousing, construction, science and technology, research development, factories, transport, etc.
How To Start A Real Estate Business In India?
To start out in the real estate industry, you must perform research on the field, just as you would before taking up any job in a company. You may start by following the lead of industry leaders.
They would be open to sharing their knowledge and experience with you until you pose as a competition.
Nothing beats receiving information straight from the source, and those who have worked in the sector can teach you both the positives and drawbacks of entering the real estate business in India.
2. Pick A Type
As previously said, there are multiple possibilities offered in the real estate industry. Commercial brokerage, residential brokerage, or land investments are all available.
You might choose any based on your preferences and the necessary means. At first, it would be wise to concentrate on one topic and then branch out as you gain experience.
3. Licenses and Registration
This is one of the crucial parts of running a real estate business in India. Previously, this may have been easily overlooked, but with legal advancements and various real estate business laws and regulations in place, licences and registration are now vital.
These, in addition to preserving your document safely, offer you the image of a responsible professional and increase your consumers’ trust.
Nowadays, it is difficult to meet a real estate agent who doesn’t have at least one of these. So, before you set off on your voyage in the world of business, make sure you have these essentials.
A good percentage of real estate agencies are unregistered companies, generally sole proprietorships or unregistered partnerships.
However, in order to gain consumer trust and battle huge online real estate broker sites, the real estate brokerage industry is being restructured, standardized, and upgraded to provide a high standard.
As a result, it is crucial for anyone launching a real estate brokerage business to register as a Private Limited Company (PLC) or a Limited Liability Partnership (LLP) in order to build up consumer trust and professionalism.
Services are taxed under the GST scheme. Therefore, service providers are necessitated by law to register themselves under the Act to prevent facing penalties due to non-compliance.
If you are a GST-registered real estate business then you must have Lio app for the growth of your business. Click this blue button below and download Lio app.
Real Estate Agent License
The real estate industry is getting more professional. Furthermore, to obtain a real estate agent license from the state government, real estate professionals can join the National Association of Realtors – India (NAR-India).
NAR-INDIA is a nationwide tent group that covers the views of many realtors and brokers across the country. Hence if you are planning to have your own real estate business in India then you must get a license.
It aspires to raise the real estate brokerage industry’s benchmarks of practice to a global level, where professionalism, clarity, accountability, law and order, and good governance are the norms.
- Choose an organization structure and register as either a Private Limited, LLP, Partnership Firm, or One Person Company.
- Decide on a business name that does not exist already.
- File an application for the Trademark Registration of your company’s name
- Draft a Memorandum of Association (MOA) & Articles of Association (AOA).
- File e-forms with RoC (Registrar of Companies).
- Pay RoC Fees & Stamp Duty.
- Verify documents/forms by RoC.
- Obtain Incorporation by RoC.
4. Business Plan
Don’t forget to draft a thorough business plan after you have successfully obtained the necessary registration and licenses to open up a real estate business.
Invest all of your skills into designing this plan, trying to make sure that the concerns you have highlighted are satisfactorily resolved and that there is room for progress.
This plan should include your company’s structure, budget, finances, and workforce recruitment strategy.
You can constantly improve in each department, but a business plan will focus on providing you with a starting point and be a point of reference if you ever deviate from the path you have undertaken.
Good and hard-working employees are crucial for a business and more so for any real estate business in India. This part is crucial since as a real estate company proprietor, you will not be capable of attaining everything.
Undoubtedly, it is unnecessary as well. You can oversee it all from the top, but you should hire the services of employees to help you out.
When it comes to recruiting personnel, do not be wasteful; instead, make sure you pick the finest. Assemble a crew of experts who have well-suited qualities that go with the role you have assigned them, whether it’s salespersons, business executives, or brand marketers.
You may capture a range of experienced and semi-experienced employees on your team, but make sure to train the latter when welcoming them to ensure everyone is on the same page.
6. Build An Online Presence
Just like any other business, the real estate business in India needs an internet presence too. Your online reputation is just as vital as your offline one. Customers nowadays carry out research on many websites before visiting a real property site.
This saves them money and energy and allows them to assess various elements from multiple angles.
Thus, you should seek to create a pleasant, informative, and extremely simple website and successfully deliver your ideas. You may also advertise some discounts and special deals on the website. No one dislikes a cheaper deal!
So, your startup is fairly well set. As a real estate business owner, the next step should be to extract real deals out of mere queries.
Make sure to keep your clients content since they are the ones who will share their stories about you with their friends and family and help you expand your business.
7. Revisit Step 1 To Expand
Once your business has flourished and running successfully, you can now plan to expand your business now and for that, you simply have to revisit the first step and which is choosing a specialty but this time it should be different, and then start to work on it.
How Can Lio Help With A Real Estate Business in India?
If you are starting your own real estate business in India then Lio can help you every step of the way. Lio is a data organization app that not only arranges your data as per your preferences but also makes them available over the phone and to various users. Clients of the network can share data with one another using Lio which makes it useful for property brokers.
It enables users to provide rapid responses to questions, resulting in more reliable and speedier data access.
It eliminates data redundancy and guarantees data consistency. Overall, it gives users access to well-managed and synced data that is simple to work with.
Lio is definitely for the win and using it for your business is only going to make your journey smooth and easy to track.
Step 1: Select the Language you want to work on. Lio on Android
Step 2: Create your account using your Phone Number or Email Id.
Verify the OTP and you are good to go.
Step 3: Select a template in which you want to add your data.
Add your Data with our Free Cloud Storage.
Step 4: All Done? Share and Collaborate with your contacts.
How Lio Automation Can Help You Business Process
Automation surely does make a difference in running a business whether small or large. It can be tricky and overwhelming at first to switch all the business processes to automation but not with Lio.
Lio Automation gives you many amazing features that make your work super simple and effective. There are very many features that will help you and your business in various aspects. From connecting and staying in touch with your customers, to working together as a team, and everything in between, Lio Automation will truly make your business run smoothly and make it reach new heights of success.
If you are using Lio Automation for your business processes consider all your data safe and secure all the time. Not only is the data saved in the cloud, but it also offers a data versioning feature in which you can actually see the many changes the document or file has gone through and who has made those changes. You can save the version of the file as required by you.
Another great feature that Lio Automation offers is color formatting the sheet. Colour formatting can help bring information and more clarity to the audience. Applying colors to different parts of any data will let you narrate a more effective story that easily catches one’s attention as well.
You can create dashboards for each file which would give you clear details of your company’s operations, marketing campaigns, sales and other analytics. This is one useful feature that would truly make a difference to your business and help your see all the processes clearly so that you can make well-informed decisions.
Since customers are a big part of any business and staying in touch with them is a crucial job, Lio automation gives you the ability to automate Whatsapp communications. Automating WhatsApp communication is another popular trend that businesses can benefit from. With the help of this, you would be able to save a lot of time, boost your customer retentions and renewals, save a lot of money, have lower operating costs and much more.
Lio Automation also makes working in teams very easy with their Task feature. you can not just assign tasks to your team efficiently. You can set the priority of each task along with the due date. Your team will get a notification about the task automatically, even on Whatsapp, they can see their assigned tasks in the app, mark them complete, and you will get a notification on Whatsapp!
Not just this, Team management and work allocation are made super easy with Lio Automation. You can also work with teams in real-time and see all the changes happening.
You can share invoices and receipts with your customers while also sharing the payment links with them to make the whole transaction process smoother and absolutely hassle-free for everyone.
There are several other amazing Lio automation features that are made so that you and your business can benefit from them. Excited to know more about it? Click here to start with your Lio automation process for your brand and start your journey to success.
Frequently Asked Questions (FAQs)
What is a Carpet Area?
“Carpet Area” implies the total useful floor space of a residence, with the exception of the ground occupied by exterior walls, spaces under service shafts, entirely separate balcony or veranda space, and exclusive open terrace space, but including the surface covered by the house’s inner partition walls, as defined by the Real Estate (Regulation and Development) Act, 2016.
Why is it required to file a Sale Agreement? What is the objective of registering?
The registration of an agreement for the transfer of immovable property is required under the Registration Act of 1908, the Transfer of Property Act of 1882, and the Real Estate (Regulation and Development) Act of 2016.
The agreement for the sale of the immovable property becomes a permanent public record once it is registered.
In addition, an individual is now considered the rightful owner of real property when it has been registered in their name.
What Is Real Estate (Regulation And Development) Act (RERA), 2016?
The Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as the Act) is an effort by the Indian government to improve transparency in real estate dealings by establishing a structured and consistent regulation and supervision, thereby safeguarding consumers’ interests and holding landowners accountable for timely project completion.
Does registration mean that my ownership of the property is protected?
If you’re buying a house, simply having the title deed registered won’t be enough. The registration office is not in charge of validating a property’s title, possession, or occupancy.
It is the obligation of the buyer to verify that the real estate paperwork is carefully prepared and that the seller’s possession of the land is confirmed.
This can be accomplished by hiring a lawyer who specializes in such topics to prepare and/or examine your property documentation, as well as perform title searches.
What is the built-up area?
The carpet area, walls, lobbies, hallways, atrium sections, and basement are all part of the floor.
It is a good idea to double-check the definitions of these phrases with the individual builders/agents because the term might signify various things in different places in India.
What is Super Built-up Area?
The term applies to the complete space of the property, which encompasses the carpet area, lobbies and corridors, walls, lifts, staircases, basements, and other atrium and utility areas.
It would be wise to verify the definitions of these words with the appropriate builders/agents to make sure everybody is on the same page.
It is because, in the same way that different items constitute a built-up area in various cities across India, different elements contribute to the super area, generally.
Founding a real estate business in India can be a stressful and time-consuming endeavor. Sometimes bringing your idea from paper to reality may seem Herculean, but everything is possible with the proper guidance.
This article discussed some basic steps to follow before starting a real estate business. However, it is strongly advised that you get expert assistance.
In addition, professionals and attorneys with knowledge of the real estate industry’s norms and processes can significantly smoothen the process.
RERA has had a favourable influence on the real estate market since its adoption in 2017 and has played an important role in pushing up the business on the ladder of profitability.