Real estate companies in India are at a crucial juncture as the country slowly adjusts to the new normal. In a matter of months, the lives of so many changed in ways they had never envisioned. However, all is not lost. The markets are picking up, and signs of revival are emerging.
The need for physical distancing has directly changed the way people dwell and interact in a physical space, it has opened up new avenues. This has made the demand for a renewed vision in designing our physical spaces come to the fore. It has also brought about a unique opportunity for the real estate industry, as we undergo this transformative phase, wherein we may see lasting changes in behaviour.
Despite the initial sharp dip, the buyer interest and property visits are now seeing an uphill as most people realise the importance of owning a home. Many of the players in this space have looked at it as an opportunity.
Organisations are finding newer ways to keep their operations running smoothly, and their customers satisfied. Real estate leaders are quickly adapting to the changed realities of operating business and taking action to deal with what may be permanent changes for the industry once normalcy sets in.
The smartest are now looking at the future of the real estate landscape, and have altered their strategy. Organisations have centralised cash management to focus on efficiency and have changed how portfolio and capital expenditure decisions are made. Serious players feel an even greater sense of urgency than before to digitise and help provide a better—and more distinctive—tenant and customer experience. Those that succeed in strengthening their position through these unusual circumstances have gone beyond just adapting: they have now taken bold actions that deepen relationships with their employees, investors, end-users, and other stakeholders.
As this new normal emerges, technology has occupied a more significant role as the first point of interaction towards driving real estate sales. Digital media is now becoming a priority for real estate marketers.
With publications currently operating with limited circulation and people confined to their homes, the reach of traditional print and outdoor media is now largely restricted. Digital media reach, in comparison, has increased radically. People are spending more time indoors and therefore, online. With targeted digital advertising getting much more sophisticated, developers are now focussing on strategic marketing and spend on digital platforms are increasing.
Consumer touchpoints have also altered in this period. From advertising on platforms such as Facebook, LinkedIn, and Instagram to communicate with customers through apps such as WhatsApp, Telegram and iMessage, how businesses communicate with their consumers have fundamentally changed. Options such as virtual viewing of the apartment are playing a huge role along with video conferencing for interactions.
Today, digital walk-throughs, virtual reality and other digital media tools and platforms have taken centre stage as a critical marketing tool given social distancing norms are in place. Allowing buyers to peruse through projects and the amenities without having to be present at the property sites, makes automated mediums as the first touchpoint with the customers. This has proven to be a significant push for the real estate to go from brick and mortar to a ‘click and tap’ format.
As physical site visits are declining, developers are now using rendered ‘virtual tours’ of their customers to showcase developments and model apartments. These are made available to prospective customers on their smartphone. Additionally, developers are also investing in ‘search engine optimisation’ and marketing through them, along with further remarketing.
Developers today are announcing project launches through the company’s Facebook page and hold channel partner meets across various video conferencing platforms. WhatsApp and/or SMS based communication (images, short videos, URLs, etc.) is sent to a broad user base, who are then engaged with digitally. This is either through the developer’s website / social media page or sometimes through an innovative ‘ChatBot’ that answers questions in a human sales representative like manner.
Human interaction is a vital part of sales when it comes to a real estate transaction. While digital mediums are being adopted and continue to interest prospective customers, the actual closure of the deal will be face to face.
Digital tools such as the ones mentioned above have become a developer’s marketing team’s lifeblood. The shallow cost barrier to entry digital platforms offer (when compared with print and outdoor media) sophisticated targeting and analytics have resulted in a sustained and robust shift towards digital tools.
This shift is here to stay. However, marketing alone (digital or otherwise), while necessary, is not always sufficient. It must be coupled with strong distribution, innovation, and strategy to achieve sales.
Developers have recognised the change in consumer preferences and a more viable landscape, innovated by the way they engage with their customers. Furthermore, strong distribution, strategic marketing and product design play a much more important role now more than ever with customers demanding more than they did before. Organisations that earnestly respond to these demands will continue to occupy pride of place in the customer’s mind and be heard over the dissonance of disparate voices vying for it.
Great service during the construction and handover period, smarter design and more efficient use of space, relevant amenities, and high-quality, timely construction are necessities for a project and brand’s success today. The more digitised and interconnected the world becomes, and the more pervasive knowledge becomes, the more critical it gets for developers to engage with and respond to their customers and their needs.
Another crucial step that played a significant role in encouraging buyer behaviour in the real estate sector was the ease of liquidity for developers through the rate cut and the extension of loan moratoriums. This has sent out positive signals across the industry and has enabled banks to lend even more. The consequential reduction in EMI burden for the consumers has only pepped up the housing demand. This is reflected in the recent uptick of real estate sales, putting India on the path to a higher growth trajectory.
This article is contributed by Jajit Menon, Director Sales, Marketing & CRM – Shriram Properties.
(The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor)