The Real Estate industry in India reached a market size of $120 billion in 2017. It will comprise 13% of the country’s GDP by 2025. Out of 14 major sectors, the construction industry ranks 3rd in terms of direct and indirect effects on the economy. It is driven by continued growth in the residential, commercial, retail and hospitality sectors as well as investment from NRIs.
Property developers have aligned their supply in line with the market fundamentals. In the last decade, the average size of apartments has decreased, suggesting construction companies are focusing on smaller sized homes due to:
Colliers has witnessed investments to be tilted towards the commercial sector in the recent past compared to residential for several reasons including yields, the risk involved and liquidity.
As per Real Capital Analytics, the commercial sector attracted 46% of the total institutional investments in India in 2018, while the residential sector gained only 2% share in the pie. In residential realty, the annual rental yields are usually in the range of 2-3% in India. Escalations in home rentals are between 5-7% per annum.
On the other hand, in commercial realty, the average yields are usually in the range of 7-9%. Escalations in commercial rentals are between 3-5% per annum. The overall returns estimated over 10 years are now around 7-10% per annum in the residential realty sector, in comparison to 10-14% per annum in the commercial realty sector.
Risk and volatility are perceived to be higher in a residential property, due to frequent change in tenants, higher maintenance and lower returns. On the other hand, commercial properties offer stable, long-term rentals, with predictable income streams.
Both residential and commercial are illiquid assets. However, with Real Estate Investment Trust (REIT) regulations, it would be easier for investors to create a portfolio of commercial properties than residential properties. Also, since the supply of Grade A pre-leased assets is low, the demand is much higher, making it more liquid than residential properties.
Given the above trends and market variables, competition in the property market keeps getting fierce with every passing day.
In the new digital economy driven by the connected consumer, industry players must rely on data and analytics if they hope to capture a greater market share.
To help you and make informed decisions about your digital marketing strategy, we at Real is Business gathered and analyzed data for about 50 major construction companies. The data reveals the most popular websites in terms of online visibility, web traffic, and search engine marketing. It also shows the sources of traffic to these websites and how they are leveraging advertising to reach their customers. Dive right in!
Here are some pointers that can help you to analyse the strength of Growth marketing in Real Estate sector.
A most important indicator of the online presence of a company is
the traffic to its website. Here is the analysis for different developers in India interesting insights: None of the 50 websites of property developers that we studied had traffic of one million (10 lakh) visitors per month Only 16 sites got more than 50,000 visitors per month Well-known brands like Raheja and Indiabulls did not make it to the top 20
Amongst this Organic search accounted for more than half of all web traffic, underlining the importance of SEO in the real estate sector. Marketers who don’t pay attention to this channel are losing out on a huge source of leads and customers. Social media was the most dismal performer, sending just 3% of the traffic. This clearly means builders and property developers need to shore up their social presence and engagement.
Lets talk about the role of social media, the big influencer platform. Social media being the buzz around the globe for different business. Here is the share in real estate market.
As expected, Facebook leads the way here. What this means is that, real estate companies would do well to enhance their brand presence and engagement on all social media platforms, which they’re not really focusing on at the moment. That said, companies need to be careful not to overdo it on every social network there is — try the major ones and build a permanent presence on the ones that closely align to your brand and marketing strategy.
Here’s how big brands are leveraging the power of social media platforms for their advantages,
No doubt the searches play an important when it comes to the intent of the users. Queries and terms that people enter into the Google search box tell you a lot about what their intentions are. You need to pay close attention to these keywords to determine the intent of the consumer
Some big brands with non-branded keywords
Here are the top buyer-related keywords, ordered by search volume (number of monthly searches) on Google. Keeping the website analysis of bid brands is not that good, you as a real estate business can have a edge over those brands.
Here are the top 10 cities where people are searching for flats, houses and offices.
Here’s how you can use this keywords analysis,
Lets talk about the paid keywords, here is the Cost Per Click (CPC) analysis,
If you don’t know the industry standards and approximate costs of digital advertising, your budgets will evaporate fast. Research the market where you plan to run an ad campaign well before you start it. For example,
Here are the key factors that affect visibility in search engines.
Let me take you to the analysis done on big brands and where they stand in terms of SEO score
Technical SEO is the base of your SEO strategy. While there are a lot of elements that work together for great on-site optimization, focus on your priorities, here are some suggestions from our end:
Marketing Automation is itself quite a vast topic. Let discuss only for Real Estate here. You can automate your marketing and sales process. You can send an automated email to your prospects with details such as the cost of the project the specifications and location.
Sometimes leads will get disqualified immediately because: they are not able to afford it, or they are looking for a real estate property in a different location and they signed up by mistake, or it could be some other reason. There will be a certain percentage of leads which will get disqualified immediately.
There will be certain leads that are very hot, there will be some leads that are just warm, and there will be certain limit switch are very cold.
Hot leads are the leads who are ready to buy a property within 2 months. Warm leads are people who are just interested in buying a property within the next 6 or 12 months, Cold leads are people who do not respond properly, and you have no idea why they sign up!
Here are some other things you can do from marketing automation tools
So, these were some of the analysis and to-dos for your sales and marketing process in Real Estate Business. Hope you liked the analysis. Do let us know your feedback or any queries in the comment section below.
Are you a Real Estate Agency/ Consultant/ Developer?
We’ve recently launched a platform to help to automate Real Estate businesses “Realtomation“. With the initiative, we are aiming to completely automate your Real Estate business in the following manner