Today, the real estate industry in India is one of the best places to establish a business. A total of $1 trillion is predicted by 2030 from its current size of USD 120 billion. Yes, this industry is thriving at a breakneck pace, bringing people from all walks of life to set up shop here. So, if you also want to start real estate business in India, you must know about its advantages, scope as well as procedures. Today, we’ll tell you how to start a real estate company or business in India.
What is Real Estate Business in India?
The Indian real estate sector is made up of a number of people that either work independently or are part of larger organizations.
From builders to material suppliers, from design professionals to brokers and real estate agents, they all have a role in this flourishing business and contribute in their own way to its development.
This group’s key members are the realtors or brokers who serve as the point of contact for customers during the transaction process, answering questions and negotiating transactions on their behalf.
Scope of Real Estate Business in India
- Experts predict by the year 2040, India’s real estate market would have grown to Rs. 65,000 crore (US$ 9.30 billion), making it highly advantageous to begin a real estate firm here.
- The housing industry alone accounts for 5% to 6% of the country’s GDP presently.
- By 2030, India’s real estate industry is estimated to be worth $1 trillion, up from $200 billion in 2021, and contribute 13% of GDP by 2025.
- Other sectors in Real Estate Business are also growing rapidly and are supplying India with the much-needed infrastructures it requires to meet its expanding demands.
- The Ministry of Housing and Urban Affairs, Government of India, sanctioned a total of 2,17,900 new dwellings in six Indian states under the Pradhan Mantri Awas Yojana (Urban) (MAY) to promote low-cost housing in the country’s urban regions.
Advantages to start real estate business in India
- It is common for real estate to gain at a rate that is higher than the annual rate of inflation over time.
- Appreciation is the most typical means through which a real estate firm might be successful. An asset’s value rises as a result of appreciation. Commercial and residential properties are examples of assets. Any number of factors, such as rising demand and tightening supply, might contribute to the rise.
- Investors can accumulate money over the course of their careers because of the numerous tax benefits associated with owning residential or commercial real estate.
- “Cash flow” refers to the steady flow of money that may be generated by renting out a property. After you’ve paid all of your bills, this is the money that’s leftover. Once your property is up and running, you’ll have a steady stream of passive income that you can use to build your business, spend time with your family, or reinvest in other properties.
- According to your rights, raw land might also provide revenue, since firms might pay periodical payments or royalty for any discoveries that are made there. New access roads, pipelines, cell towers, and pump jacks are a few examples, but they are not the only ones to consider. For agricultural purposes, it is usual to rent farmland that has valuable harvestable assets that may be gathered on a regular basis.
Stepwise Journey to start Real Estate Business in India
Conduct a Market Research
It is essential to conduct thorough market research before putting together a company strategy that will be a success. Your real estate firm might focus on a number of different exit strategies, some of which are more suited to new agents.
Wholesaling is a popular choice for new investors since it allows them to get their feet wet in the business before investing in individual properties.
If rehabbing or buying and holding a property is more in line with your objectives, then they are also viable possibilities. You must make a solid Business Plan & Project Report before starting a real estate business.
Organize Your Money
There are many ways to get involved in real estate without putting any money down, but that doesn’t mean you should avoid having a look at your present financial situation. When you apply for a business loan, you’ll likely be asked about your financial history. It is critical to conduct a search prior to being approached with inquiries.
Get the required Licenses and Registrations
Licenses and registration are now more necessary than they were in the past because of legal improvements and a number of real estate sector legislation.
In addition to ensuring that your paperwork is neat and tidy, they can help you appear more trustworthy to both clients and consumers alike.
If you want to start your own real estate agency, you’ll need to register your business, as well as get a service tax registration and a real estate agent’s license.
The basic requirement of Licenses and Registrations is as follows:
- Online Company Registration
- GST Registration
- Trademark Registration
- MSME Registration
- RERA registration
- Shop Establishment Registration
Marketing and Building a Team
Having a strong online presence is essential in today’s world. This is particularly true in the real estate business.
The majority of buyers say they begin their search for a property online before contacting a real estate agent.
You will be more likely to attract new customers if you have a well-designed website. Website Development from a professional web developer can be helpful for you in getting a feature-enriched website. Lastly, Whether you’re using social media, email, direct mail, or another type of conventional marketing, make sure your branding is consistent throughout all of these mediums. Make careful to plan follow-ups for each campaign you send out.
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