The Importance of Market Research in Indian Real Estate

 

The real estate industry is highly fragmented as the availability of information is limited.

The real estate market in India behaves in a unique way with too much diversity. It is essential for all real estate stakeholders to clearly understand and adapt local market dynamics and get accustomed to global trends. The real estate industry is also developing a durable database and analytics to forecast numbers and current trends.

The Latest Evolution of Real Estate Market Research in India

Before 2005, the Indian real estate market wasn’t much developed. However, post-2005 the real estate industry began growing with good global exposure and expertise. As international players came in with their global exposure and expertise, the market’s expectations changed a lot too. Now, taking a call purely out of judgment was fraught with risk, as its probability of working out correctly went down drastically.

Real estate developers also started employing market research strategies for taking better decisions which weren’t done before. This will build up their data and market research capabilities from scratch over a period of time.

Market Research Consulting – Increasing Relevance

The real estate market research cannot be under- estimated. As the Private Equity (PE) funds have preferred to involve real estate experts for taking the second opinion on entry/exit strategy and deliver the impartial strategy. These Private equity funds have made developers realize how they have changed the ways of working in the real estate industry to a large extent. The market research role will become more and more relevant in the future.

The Future of Real Estate Market Research

The market research strategy will be changing in upcoming years. This research involves two roles- to manage data and address data needs of clients, and to provide expert advisory services. In the near future, the role of data will decrease as the real estate industry becomes more transparent and technology gets more integrated with the industry.

On the other hand, the advisory role will increase to an extent that it could very well play a dominating role in the Indian real estate industry. This is the generation of specialization – specialization has the tendency to increase firm’s success ratio. Data analytics is also getting significant these days. The role played by the advisory services has also delivered significant services.

However, in India, there is no formal academic course for real estate. Therefore, it is important to sensitize and educate people about what skills are needed in this industry and how it can be a good career option for them.

 

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