How to a Start Real Estate Business

The Indian real estate sector is projected to hit a whopping US$ 1 trillion by 2030 contributing 13% to the nation's GDP by 2025! Can you imagine this super impressive growth of the real estate business and that's why many entrepreneurs are eager to enter this booming market. For newcomers this real estate business still has ample opportunities though there are some well-established players.

The real estate business could be your entrepreneurial journey if you are planning one and this may be the right time as growing housing demands to office spaces is brimming potentially. It is a good thing that RERA Act has been introduced in this erstwhile unorganised sector to make it a more secure and attractive option for fostering real estate business in India. In this blog, we shall walk you through some steps on how to start a real estate business and grow as a new entrepreneur.

What is the scope of real estate business in India?

One of the flourishing industries today in India is real estate business and it comprises numerous professionals operating either individually or with established industry players. It is one of those flourishing sectors that works with professionals from several verticals like material suppliers to engineers and architects to real estate agents and brokers. With a wide variety of professionals involved in this industry, setting up your business today in this lucrative sector has a lot of scope. The massive growth since the past few years and the enforcement Acts like RERA and REIT makes it the domain to be in for potential growth.

How to start a real estate business in India?

Here are a few steps to get you started on the real estate business:

Step 1: Market research

For a basic understanding and success of your real estate venture, a solid research to back your endeavour is very essential. You can gather inputs from old players in the business as long as they are not your competitors because tips from senior players give you a better insight into the real estate business. Networking and training through seminars conducted by the industry is an ideal place to learn for aspirants to learn in real estate business. You can be more confident and learn new things by participating in such events.

Step 2 : Pick a speciality

The diverse real estate industry has plenty of roles and responsibilities to choose from. A thorough research shall help you decide your profession in this domain that suits your profile and you can further grow in your role like maybe as a land investor, a commercial broker or a residential broker and so on. In this diverse sector, the trick is to find your focus in a single speciality which will help expand your business in future.

Step 3 : Register your business

Now, the next step would be to register your business with the authorities. To begin with, you will have to register under RERA for the state you are operating in. You can hire a consulting firm to help you through the process. Once done, you’ll receive a RERA registration number as a reference for all future dealings.

Step 4 : Obtain a licence

Obtaining a licence is one of the most time consuming processes managing a real estate business in India. Various industry laws and regulations have made it compulsory to acquire these licences today. In the earlier times, licences and registrations were optional.

Once you have successfully registered your business, the documents you need to obtain are:

• Real estate licence
• GST number
• Service registration
• Income tax ( if working individually)
• RERA registration ( if working individually)

Without the above licences and registrations it is difficult to work in a real estate business today. So you need to be sure of keeping these ready before beginning your venture. There is also the benefit of getting an affordable loan to start your business if you get the required licences.

Step 5 : Draft a real estate business plan

A very essential step for your business's success is a real estate business plan that will help you see your vision clearly and list down the minutest details you may miss and that may be expensive later. So brainstorm ideas and write a comprehensive real estate business plan on vision, funding and expansion and other essential parameters. 

It would be recommended to identify your challenges, competition, targeted areas and many more in your business plan. It is a good idea to review your plan with a mentor so that in case of any loopholes or gaps, you are aware and can work towards them. Sometimes, many seasoned brokers and realtors get into a partnership with new or existing real estate companies.

Besides giving you a direction for your business on how to start a real estate business plan, it shall also help you to secure a business loan. So the stronger the business plan, the better your foundation.

Step 6 : Build a Network

For a successful run in your business of real estate, a key requirement is good networking. When you are a newcomer in this industry, it is more important for you to connect with people and provide value.

Once you have established your business, you need to meet more people in the industry to expand your industry portfolio. Networking will enhance your valuable presence in the market, and you will earn substantial business. Besides networking, promote your real estate business with suitable advertisements and work towards building a good online presence for better growth opportunities.

Step 7: Ensure an online presence

Creating an online presence will have a great impact on your business. You must ensure your presence on the most significant websites for your target audience. In this digital age, consumers conduct extensive online research before visiting any real estate website so that they can evaluate several parameters, save money and energy, and have different perspectives. 

You should develop a warm and welcoming website that is easily navigable and effectively educates consumers. On this platform, you can also promote discounts and limited offer announcements. Some of the other modes online are social media, Facebook, and Instagram. For offline, you could advertise in magazines and newspapers.

Conclusion

The recipe for a successful real estate company has many ingredients. Just a robust business plan is not all to build the company, it is essential to have the dedication, perseverance and service mentality besides reliable financial support. When securing a business loan, always compare interest rates, repayment terms and additional fees offered by different lenders. It might help you to find the most suitable financing option that suits your needs and goals. A well-structured loan can give you the financial support you need to build a flourishing real estate business.

FAQs

Q1. How much investment is required for a real estate business?

Ans. In India, real estate has always been a haven for investors due to its stable growth and high returns. But most people believe that investing in real estate requires a lot of money and expertise. However, with the right guidance and knowledge, you can start investing in Indian real estate with just INR 15,000.

Q2. Which real estate is profitable?

Ans. Residential Real Estate is profitable. Rental properties, like single-family homes or apartment buildings, can provide steady cash flow and the potential for property value to increase over time. The rent you collect can help cover your mortgage and generate profit.

Q3. What are the basics of real estate?

Ans. Real estate includes all homes, buildings, and lands used for residential, commercial, or industrial purposes. It is one of the best investments one can make to ensure long-term financial security.

Q4. Can I invest in real estate online?

Ans. Online platforms are a great way to invest in Real Estate considering the simple and secure procedure of investment. You can invest as litte as Rs. 5 lakhs in a larger estate worth millions.