Until a few years back, the only places to look for real estate projects were yellow pages, pamphlet, newspapers, magazines (and, rarely, local TV channels). The market was informationally inefficient. Times have changed drastically since then. Now, information flows incessantly in the public domain. New information spreads in real time and quite inexpensively. Getting information for anyone and virtually about anything is easier than ever. Information & Communications Technology (ICT) seems to have become one of our sensory tools.With internet-enabled mobile phones and laptops, the whole world of information stays with you anywhere you go. Technology has changed the dynamics in which consumers contemplate their requirements and decide on the products and the way sellers market their products.
Although some players are picking up the momentum in this area, the real estate players in India seem to have underutilized (or even 'over-utilized') the internet power. In short, we are yet to reach an optimum level of internet marketing. Even today, a large number of real estate developers rely on huge banners and full-page ads in newspapers. These are certainly the basic advertising techniques which will not cease to exist for coming several years. However, these are not the ‘trendiest’. Also, these are quite inefficient when it comes to hitting the precise ‘targets’. The new world of ICT believes in marketing products to the 'targeted' customer segments. There are endless advantages that can be garnered through internet.
Buying a newly developed real property calls for an extensive research on the (real estate) project and the developer. Searching on websites for the developers, projects and the current projects status often leads to disappointments as the hits provide little relevant information that a prospective buyer needs. A large portion of the search results would lead to real estate brokers or real estate consultants. Since the real estate brokerage/agency is not very well regulated in India, the prospective buyers remain skeptical of such online information. Thus, buyers may not feel comfortable collecting information from third-party consultants. In other words, the lack of transparency and first-hand information may keep the buyers away.
[P.S. We are not arguing against the efficacy of third-party sales deals. The role of real estate brokers and agents is, in fact, crucial to improving the efficiency of the market. However, the current (lack of) regulatory framework may blur the apparent distinction between trustworthy sales agents and others. It will not only help the buyers; but also the sellers if the developers categorically publish the list of their authorized agents/brokers on the official website. It is not unlikely that a newly constructed property is 'flipped' and soon listed in the secondary market. The original buyer (the developer), in such a scenario, may lose control of the sales. However, in the case of the original property sales, they may offer some kind of broker-certification to the buyers for specific properties that are still listed on sale. More importantly, such information should be updated frequently.]
Recently, some developers seem to have recognized the potential of online markets. Amrapali Developers, for example, offer frequently updated 360 degree view of their construction site (http://www.amrapali.in/virtual/amrapali-siliconcity/5.html). Mantri Developers maintain a twitter account which provides updates about the company and their latest developments (http://twitter.com/#!/mantriblr).These ideas of connecting to the clients offer easier and affordable ways to market the projects and build trust.
A large proportion of the real estate market in today's urban India is made of first-time home buyers working for multinationals in IT, BFSI etc industries. These are sophisticated professionals who have easy access to computers and the internet. The NRI and HNI buyers, too, are often internet savvy. Be it the first time home buyers or NRI investors; all are risk averse when it comes to putting their money in Indian realty. As a result, they tend to conduct extensive research before buying or investing. Of course, online research is one of the first things they want to do. There are real estate forums (e.g. http://www.indianrealestateforum.com/ ) canvassing projects, their pros and cons. Real estate portals offering updates on the upcoming projects and their current status are sprouting. These rather ‘third party’ sources of information may substantially affect the rapport of the builder/developer and the projects. Any bad feedback about a project on such platforms could cause the loss of several prospective buyers/investors. But, why would customers resort to third parties if the best place for the richest information on your projects is your own website? Small and medium size developers may find it challenging to maintain such online platforms. However, professional organizations such as NAREDCO/ CREDAI can help in fostering a combined platform for developers to offer real time project updates. In any case, the realty sector has to start focusing and considering internet marketing in a more serious manner; and include it in their strategic plan.
A highly misunderstood aspect of online media manifests in how the developers have been using twitter, facebook, linkedin profiles and social media. Researchers have come to realize that these social networking website have started behaving like “mouthpieces” of the companies (and not like sources of objective information). Such tactics (which are often employed for search engine optimization) may temporarily improve the traffic on the website; but would hardly improve the brand image and/or sales. A twitter/social networking update on a residential project "1st floor slab done, construction on full swing ...." can give the buyers an extra level of comfort and dependability on the developer. Real-time video/ image captures of the current projects will be a far more effective brand-building exercise. Of course, it will require a higher degree of professionalism in project execution. Similarly, a Facebook page posting the pictures of the project status could be an effective idea.
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| Vinod Singh | Partner: realism.IN |
A large proportion of the real estate market in today's urban India is made of first-time home buyers working for multinationals in IT, BFSI etc industries. These are sophisticated professionals who have easy access to computers and the internet. The NRI and HNI buyers, too, are often internet savvy. Be it the first time home buyers or NRI investors; all are risk averse when it comes to putting their money in Indian realty. As a result, they tend to conduct extensive research before buying or investing. Of course, online research is one of the first things they want to do. There are real estate forums (e.g. http://www.indianrealestateforum.com/ ) canvassing projects, their pros and cons. Real estate portals offering updates on the upcoming projects and their current status are sprouting. These rather ‘third party’ sources of information may substantially affect the rapport of the builder/developer and the projects. Any bad feedback about a project on such platforms could cause the loss of several prospective buyers/investors. But, why would customers resort to third parties if the best place for the richest information on your projects is your own website? Small and medium size developers may find it challenging to maintain such online platforms. However, professional organizations such as NAREDCO/ CREDAI can help in fostering a combined platform for developers to offer real time project updates. In any case, the realty sector has to start focusing and considering internet marketing in a more serious manner; and include it in their strategic plan.
A highly misunderstood aspect of online media manifests in how the developers have been using twitter, facebook, linkedin profiles and social media. Researchers have come to realize that these social networking website have started behaving like “mouthpieces” of the companies (and not like sources of objective information). Such tactics (which are often employed for search engine optimization) may temporarily improve the traffic on the website; but would hardly improve the brand image and/or sales. A twitter/social networking update on a residential project "1st floor slab done, construction on full swing ...." can give the buyers an extra level of comfort and dependability on the developer. Real-time video/ image captures of the current projects will be a far more effective brand-building exercise. Of course, it will require a higher degree of professionalism in project execution. Similarly, a Facebook page posting the pictures of the project status could be an effective idea.
Integrating online marketing into the core strategy will not only build the trust but may also substantially improve the sales. With more reforms in Indian real estate market and many big players joining the arena, internet strategy should surely be at the top of the list. How to increase Internet presence and what real estate players can do to achieve these goals? Stay tuned for our upcoming blogs!
- The Opinion Editor (Vinod Singh) is a Partner and Head of Technology at realism.IN.
