Coldwell Banker, the global leader in real estate franchising and provider of real estate advisory services is part of Realogy Holding Corporation. Speaking to Buildotech, Ramnik Chopra, Managing Director, Coldwell Banker India, gives his views on the Indian real estate scenario and the company’s operations in the country.
Reasons for Company’s entry in Indian market
Coldwell Banker headquartered in USA is present in 50 countries with 3100 offices. In India, the economic development is fuelling the robust real estate growth. Consumers are seeking a more transparent and professional transaction process. Therefore, the entry into India marks a significant effort of a worldclass brand to bring best practices, processes, and tools to the Indian real estate brokerage market, which remains extremely fragmented.
On one hand, the company is customer-centric service addresses the need of today’s contemporary Indian consumer and on the other, it provides world class training and technology to its local franchisees. Coldwell Banker plans to bring a pivotal change in how real estate
is transacted across India.
In order to set up franchisees with best practices, we are offering all the relevant services pertaining to real estate. We are also helping them identify the right projects and right markets. Our approach is research-driven along with focus on creating more and more trained professionals on the field. We are also looking at few tie-ups in the technology front, which currently are at a very nascent stage.
Indian real estate market differentiators
In India, the cultural emphasis on owning a property is very high as compared to the western civilizations. 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.
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. The biggest difference in the real estate service sector is that the real estate professionals in the US are licensed and brokerage is capped and regulated, all transactions are transparent and above all the consumer is protected.
Company’s target clientele in India
The company target client are the individuals who want to invest in a real estate business but are hesitant in entering the industry as it is quite unpredictable and volatile. We are also looking at local brokers who want to expand their business and reach out to international markets. Our franchisees are targeting end consumers who want to buy or rent both nationally and internationally. Our services cater to all income groups, both individuals and corporates.
Your views on India’s luxury residential segment
Indian real estate prices are comparatively very high as compared to other countries. In the luxury market, major share is of Mumbai and Delhi due to one being the financial capital and other being political capital. Both the cities have UHNIs who demand luxury places. Geography also plays a very important role with Delhi having all major cities surrounding it. Mumbai is covered with sea from three sides. It is often referred to luxury real estate capital of the country, due to amalgamation of factors like financial strength and presence of UHNI’s.
The growing role of technology in realty transactions
Reaching out to customers has become easy with the help of online portals, this helps customers to search what they are looking for. But it is still important to give real estate a human touch as it is a decision based on both head and heart. Technology majorly helps today in streamlining the processes, keeping a tab on leads and inventory, agent management etc. Pre sales and post sales customer relations have all been moved online. CRM systems streamlining processes and online portals helping the search for right properties, there is a lot of reduction in time invested.
The services Coldwell India will provide to its customers
At Coldwell Banker India, all Property sales take place through franchisees. Following are the key client services provided by our franchisees:
- Advisory: As trusted advisor to all our clients in both the residential and the commercial sectors, our clients benefit from our decades of experience and research based expertise.
- Sale/Resale: Our specialists ensure that selling/ reselling becomes effortless and convenient utilizing company’s knowledge and expertise to find the right buyer at the perfect price.
- Lease: We use our extensive network to lease out properties or find suitable tenants for clients. The attention to detail ensures that the results are coherent with individual requirements.
- Commercial: Sale/Lease/Rental of commercial properties becomes easy and seamless with our network as the company is empanelled with over 300 developers, which client access to properties all around the world.
- NRI Services: India is experiencing constant and sustained development in the housing and the infrastructure sector. This growth enables investment opportunities for many NRI’s and PIO’s living abroad. The company will facilitate such investments in the country.
- Developer Services/Project marketing: Our extensive network of franchisees and agents both locally and nationally ensure that developer’s project is prominent and on the right platform for an effective sales position.
- Research & Advisory: We help client derive the right price/ valuation for projects and ensure that they are recommended to the right buyers. We also use our research-based expertise to help corporate clients understand the market and make informed decisions accordingly.
- NRI Sales: A high number of NRI’s looking for an investment oppor tunity in India. The Company helps that the Indian client’s property is visible and promoted on a global platform for such investments.
- Corporate Services/End-to-end Solutions: From the selection of locations to property sourcing, negotiations, financial analysis and transactions, we provide end-to-end real estate solutions to our corporate clients. We help corporate in asset acquisitions and dispositions.
The potential of Indian real estate
Almost 60 to 70% of all residential real estate that is sold in India is sold through brokers and channel partners. The real estate brokerage market in India is valued at about Rs.2,430Cr with Mumbai taking up the biggest chunk of the business at about 41% followed by Delhi at about 13%. The four metro cities take up the biggest chunk of the brokerage at about Rs.1,360Cr.
In the race of brokerage, even the smaller cities are in a major reckoning with total brokerage contribution of about Rs. 180Cr. These cities include Surat, Ahmedabad, Vadodra, Nagpur, Vishakhapatnam etc. With the Government’s increased focus on infrastructure projects and smart cities, we expect a few more cities like Gujarat’s Gift City to be added in the race. Overall, being a developing nation with a growing economy, brokerage in real estate has a huge scope in India.