Real Estate Franchising in India
In India, the cultural emphasis on owning a property is very high as compared to the western civilization. The real estate sector is the second biggest employment generator and as many as 250 ancillary industries like steel, cement etc. are dependent on this sector. In India, this sector is unique in respect to the fact that the financing for it comes from all possible quarters like the Government, banks and other financial institutions and individuals. 60-70 % of all residential real estate that is sold in India is sold through brokers and channel partners.
Despite its significance, it is known as the most volatile sector and is closely monitored by the financial authorities and the focus is given more to affordable housing. Being a developing nation with the Government’s increased focus on infrastructure projects and smart cities, brokerage in real estate has a huge scope in India.
The sector is also known for its lack of transparency and cancelled cash dealings, thereby creating a need for an organised real estate brokerage service.
The real estate brokerage market in India is valued at about Rs. 2,430 crore. Today, with more than 1 lac brokers & real estate agents transacting in some form or other throughout the country, the Indian Real estate market is still highly unorganized. Presently, with varied consumer demands the sector requires more organised real estate brokerage service.
Today, what has changed is the way real estate agents and brokers find and communicate with buyers and the way transactions are conducted through technology. But the business hasn't really changed. It's about trust. People want to work with someone they believe in.
Franchising brings in consistency and predictable service quality in the sector and in turn makes real estate buying process transparent & regulated. This is critically essential and helps when a large international brand is backing it.
This unparalleled support not only helps real estate agents to excel but also gives an opportunity to individuals from outside the sector to participate and benefit from the growing real estate sector.
How Franchising benefits the Real estate customer:
Franchising can do a great service to the Indian Real estate consumer. Each agent of every Coldwell Banker India franchisee is trained to be a knowledgeable, well-spoken & ethical agent with the sole objective of ‘customer first’. Every project marketed by our franchisees is backed with in-depth research of the location of the project.
This research gives the customer an in-depth analysis on the existing infrastructure of the location, the impact of upcoming infrastructure, the livability index of the area and therefore predicts the real estate trend of the area. This goes against the current trend of IPC's rushing to sell any and every new launch. Each franchisee of the Coldwell Banker India network adheres to the philosophy of determining the viability of an area, before they focus on selling projects.
This Article is written By Mr. Ramesh Sharma-Director Coldwell Banker India.
Coldwell Banker India currently operates through its 9 operational franchisees in Mumbai and 1 franchisee office in Bengaluru