Several developers have resorted to disruptive or innovative marketing strategies, to improve their sales. We examine whether such concepts can create a better connect with property buyers
While developers in India have often been blamed for being stereotypical, to the extent that even the marketing brochures of identical projects are similar, some first movers are experimenting with innovative/disruptive marketing and with reasonable success.
Whether it is called market disruption or innovative disruption, it is proving to be an important concept, at a time when the market conditions remain challenging. Wikipedia defines disruptive innovation as one that creates a new market and value network and eventually disrupts an existing market and its value .
Developers are increasingly resorting to innovative offers
Disruptive innovation is not a new phenomenon in Indian real estate. For example, Bengaluru-based Sobha Ltd launched its Sobha Connect program, where the developer is knocking on the doors of housing societies that were delivered 10-15 years ago. The benefit of this approach, is that satisfied buyers act as brand ambassadors and send new referral clients to the developer. JC Sharma, MD and VC of Sobha Ltd, maintains that in a real estate market where most of the things are done in a traditional manner, any new approach that encourages the workforce to think out of the box, helps. “We are trying to better our processes, bring in more efficiencies, cut costs and improve quality,” says Sharma.
Another Bengaluru-based developer, Puravankara, has brought innovative disruption in the market by allowing the customers to purchase an apartment and then lease it back to them for a contracted term of seven years. Puravankara’s Managed Residences Plan is a three-way alliance between Puravankara, Snapdeal and JLL, to provide a unique leased asset management.
This enables customers to purchase a ready-to-occupy apartment from Puravankara across Bengaluru, Chennai, Coimbatore and Kochi and lease it back to Puravankara with an additional rental appreciation benefit of 8% every year. Buyers have an exclusive option for premature withdrawal from the lease agreement, in case they choose to occupy the apartment or manage the rental process themselves.
“Developers in the past have offered rent assurances for one or two years. However, our seven-year rentals, indicates our bullish view on the long-term real estate story in the country,” says Ashish Puravankara, MD, Puravankara Projects.
Disruptive strategies should provide value for buyers
Mumbai-based Godrej Properties, sold villa units worth over Rs 300 crores, at its newly-launched project, Crest, in Greater Noida, in a single day. The channel partners who were taken on board, claim that it has not been just the corporate brand value of the developer that created this level of market disruption. Similarly, in Mumbai, Omkar Realtors and Developers, is offering home loans at just 4% interest rate, along with a static floor rise in its project Ananta at Goregaon. The company has also introduced a flexible payment plan with a booking amount of only Rs 2 lakhs.
Nikhil Hawelia, managing director of the Hawelia Group, however, points out that innovative disruption is only talked about, when a leading player introduces it. The small and mid-sized developers always come up with market disruption, to get noticed, even if it is confined only to the core micro-market. In real estate, the quest for market disruption, had earlier been to expand exponentially into non-core areas. The trend proved disastrous for most of those developers and most of the second-generation developers in the business have learnt from the experience of erstwhile leading players that went into oblivion. Hence, the new market innovations now, are more grounded and realistic.
Market disruption gains ground
Innovative disruption has the potential to be a market differentiator for developers.
Today’s buyer expects the builder to make an offer than no one in the market can match.
First movers to introduce market disruption have reaped the benefits, as the buyers find greater value for money in such emerging practices.
Home Buyers Lose The Agents And Opt For Digital Route
With passing time digital media is becoming the preferable choice of the buyers as well as the developers. Developers are going to online platforms and social media to reach out to their target audience and also the buyers are increasingly going online for searching homes. This makes digital media a mainstream platform to advertise in real estate industry.
C Shekar Reddy, Immediate Past President of CREDAI explained why digital platforms are becoming more popular in the real estate. He said, “IT employees, NRIs form the majority of home buyers today who are tech savvy and use their smart phones for searching homes. Also most of the home buyers today are being influenced by social media while purchasing a home or property. As a result builders and realtors are putting utmost focus on digital platforms to reach out to potential consumers”.
The growing trend can be observed by the way the builders are spending on online platforms. It is far more than traditional marketing and publicity avenues unlike past. Builders have also become conscious of their presence and reputation on property portals and other online platforms. They are taking each step carefully so they can make the right connect with their buyers.
K Sreedhar Reddy of Telangana Real Estate Developers Association explained the growing importance of digital media, said, “Digital platforms and social media provide builders a chance to reach to the consumers in a more focused way. Also they can track the efficiency of strategy online. The cost of acquiring customers through online and social media is also lesser when compared to other advertising channels. Therefore digital platforms are becoming popular in realty sector”.
As per the inside sources, this trend is not only visible in the metros like Mumbai, Chennai or Hyderabad but also in Tier II & III cities. Customers as well as developers, both are relying more and more on digital platforms.
CREDAI New India Summit
CREDAI is the apex body that represents over 12,000 private Real Estate developers spread across 23 state-level chapters and 177 cities in India. Established in 1999, CREDAI has worked hard to make the industry more organized and progressive by networking closely with Government representatives, policymakers, investors, finance companies, consumers and real estate professionals.
The New India Summit is another such effort from CREDAI to direct focus on Tier II, III and IV cities and develop them to be the forerunners of success. CREDAI New India Summit is all set to unleash the potential of an emerging India. This one small step has the power to give way to a new India.
For the longest time, our leaders and foresighted influencers have put all their time and energy in developing the Tier I cities namely Bengaluru, Mumbai, Delhi, Pune, Ahmedabad, Hyderabad, Chennai and Kolkata. No doubt, these cities have really changed the way people look at India today. These cities are the epitome of advanced technology and modern culture. But they also face challenges due to the grave pressure of urbanization. Decreasing quality of life, increasing the cost of living, overpopulation and unemployment, increase in transit time and traffic congestion, expensive housing, hospitality, education and healthcare facilities are some of the issues that all the Tier I cities face today.
According to a report, smaller cities are developing 79% faster as compared to metros with just 21%. Our of the 12,000 CREDAI members, 76.77% of them are from Tier II, III and IV cities. Looking at the scenario, it is only innate to divert the energies in developing the areas which still have potential. Thus, offering a good quality life to people in those cities itself and taking the pressure off of the Tier I cities.
The Forbes Magazine has said small cities are India’s emerging business locations. The government has also been putting dedicated efforts into schemes that directly benefit the growth of Tier II, III and IV cities. Sustainable economic development, improving infrastructure and transportation, increasing employment opportunities, and introducing technologies for rapid urbanization are some of the prime agendas that the government has been taking actions on.
The CREDAI New India Summit will take place on the 9th and 10th November 2017 in Nagpur, Maharashtra.
Tata Value Homes Launches “Offer Of The Century” With 99 Hours Flash Sale on Affordable Homes
Mumbai, Maharashtra, India
Tata Value Homes – a 100 % subsidiary of Tata Housing – one of the leading real estate development companies in India, today announced the launch of ‘99 hours flash sale’ on Tata Value Homes across India. Through this offer, Tata Value Homes will enable customers to own their dream home with 99 percent funding by select banks. The scheme is applicable on the first 99 units across the projects and for a limited time frame of 99 hours starting from 2nd November to 6th November 2017.
Mr Rajeeb Dash, Head – Corporate Marketing, Tata Housing, said, “Tata Value Homes pioneered affordable housing in India and continues to introduce innovative offers to encourage fence-sitting buyers to take a first step towards owning a home. Customers have always been central to our business and this unique 99 hours flash sale is tailored to connect aspirers with their perfect residence from our diverse portfolio of projects.”
To avail the scheme, customers will have to log on to www.tatavaluehomes.com between 23rd October to 1st November and register using basic details. Post registration, customers can visit the site between 2nd November to 6th November 2017 to check for loan availability within 30 minutes and walk away with the allotment of the unit with a loan of 99% of the agreement value.
As the leading provider of homes under affordable housing segment, Tata Value Homes develops affordable housing that goes beyond merely providing a house, to one with a ‘neighbourhood and community’. The first 99 customers will have the convenience to buy a home from the Tata Value Homes projects such as New Haven, Bahadurgarh; New Haven Compact, Ahmedabad; Shubh Griha Ahmedabad; New Haven Boisar I & II; La Montana, Talegaon; New Haven Bengaluru, Santorini, Chennai; New Haven Ribbon Walk Chennai.
About Tata Value Homes Limited
Tata Value Homes Limited is 100% subsidiary of Tata Housing Development Company Limited, established in 2010, to exclusively focus on value and affordable housing. The vision of Tata Value Homes Limited is to be the largest home provider in India. Tata Value Homes Limited has introduced two pan-India brands – Shubh Griha (Value Homes) and New Haven (Affordable Homes). Tata Value Homes Limited is also developing a Mediterranean themed project “La Montana” near Talegaon, Pune, while Shubh Griha is currently being developed in Boisar & Vasind near Mumbai and Ahmedabad, and New Haven is currently being developed at Bosiar, Ahmedabad and Bengaluru. Tata Value Homes Limited today has projects in Mumbai, NCR, Ahmedabad, Bengaluru, Chennai and Pune.
About Tata Housing
Tata Housing is a closely held public limited company and a subsidiary of Tata Sons. It is the first corporate to pioneer the concept of real estate development in India. It is widely recognized for quality construction, ethical and transparent business practices and timely delivery of properties. It has a pan-India and international presence with demonstrated capabilities in Construction, Engineering, Commercial / IT parks, Housing and Township development. It is known for international standards of design and green sustainable developments.
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