How to Start a Real Estate Business in India?
The increasing accommodating needs and buying capacities of average Indians, along with an increasing demand for office spaces, have fuelled the growth of the real estate business in the country. Moreover, the recent enactment of the RERA Act has made real estate business a risk-free and transparent business option for SME owners.
However, with the increasing competition in the market, emerging victorious as a business in the real estate sector requires research and strategic planning. Here, you will learn how to start a real estate business in India and achieve your business goals.
All About the Real Estate Market in India
The Indian real estate market comprises numerous professionals operating either from their individual setups or with established industry players. From material suppliers, builders, engineers and architects to real estate agents and brokers – all are part of the country’s booming real estate industry. Undoubtedly, real estate is one of the most lucrative sectors where you can set up a business today. With massive growth in the past few years, people from different backgrounds have started their business here. With improved transparency and enforcement like RERA, Title insurance, and REITs, the industry is now in the best hands.
Read also: 5 Best Ways to Invest in Real Estate
| Steps | Description |
| Conduct Thorough Research | Gain expertise from real estate professionals and industry events. |
| Pick a Speciality | Select a specialization (e.g., residential, commercial, or land) based on your budget, expertise, and risk tolerance. |
| Register Your Business | Register with your state RERA Authority to get a registration number. |
| Obtain a License | Obtain licenses: GST, service tax registration, real estate agent license. File ITR if working individually. |
| Develop a Business Plan | Create a detailed business plan that includes your strategy, budget, and business structure. |
| Expand Your Network | Strengthen industry connections for better market presence. |
| Build an Online Presence | Create and manage an engaging online presence via a website and social media. |
| Secure Funding | Consider using an instant loan from Hero FinCorp to support your real estate business. |
These steps provide a structured approach to starting and growing a real estate business, including research, specialization, legal requirements, planning, networking, and establishing an online presence.
How to Plan, Start, and Grow a Real Estate Business Step by Step?
If you want to know how to do real estate business in India, do your homework and get the required funding as an instant loan for business from Hero FinCorp to achieve your goals. Here is a step-by-step guide:
Conduct a Thorough Research
Like any other business, you must research the subject to enjoy a profitable stint. Begin by seeking inputs from real estate experts who will willingly share their journey and overview with you. These people with industry experience will make you aware of both the pros and cons of starting a business in the real estate industry. Moreover, attend seminars and events in the industry to boost your confidence and gain knowledge about the intricacies involved.
Pick a Speciality
Before knowing how to start a real estate business, pick a speciality between residential investments, commercial brokerage, or land investments. Choose a preference based on your budget, domain knowledge, risk appetite, and other parameters. Initially, focus on one area and grow gradually to increase your spectrum.
Read also: Financial Tips To Set Up A New Business
Register Your Business
To become operational in the market, you must register with the concerned authorities. First, you must register under your state RERA authority. A professional consulting firm can help you get through the process smoothly. You can use your RERA registration number to conduct business in future dealings.
Obtain a License
According to the latest industrial rules and regulations, you need a license to run a real estate business successfully. After successful registration, you will need a GST number, service tax registration, and real estate agent license. However, if you decide to work as an individual real estate agent, you must file your ITR and provide RERA registration documents. Apart from helping you start your business right, proper licensing also improves your Business Loan eligibility.
Develop a Business Plan
Now that the required registration and licenses are in place, create a detailed business plan including all your knowledge, research results, challenges, and ways to overcome them. The plan should also include your business structure, funds, team strategy, budget, etc. Although you can improvise the areas later, a plan will provide the right direction on how to start up a real estate business and tread the path.
Expand Your Network
Building a strong network is essential for successful running of a real estate business. Especially during the initial stages of your business, you must study various situations and meet people to build new connections. Connecting with people will add value to your market presence, helping you earn considerable business through contacts.
Build an Online Presence
Building and maintaining an online presence is great value for a real estate business. Since today's customers research online, being accessible to your target audience will save energy and money. Ensure your website is informative and user-friendly. You may also promote limited-time offers or discounts to attract customers. Moreover, take into account the power of social media to make a strong online presence.
Real Estate Rules and Regulations in India
Following are some key pieces of rules and regulations governing the Indian real estate market:
- Transfer of Property Act, 1882: Central act that outlines general principles of properties in terms of mortgage, sale, gift, lease, and sale
- Indian Easement Act, 1882: Governs rules relating to easement rights for immovable property
- Registration Act, 1908 and Indian Stamp Act, 1899: Governs laws for the payment of stamp duty and registration requirements for various documents, instruments, and deeds
- The Indian Contract Act, 1872: Governs laws related to contracts in India
- Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Governs acquisition of private lands by the Government
- Land Revenue Codes: Govern laws relating to land revenue, agricultural land-holding, tenancy types, and other related matters
- Real Estate (Regulation and Development) Act, 2016: Governs sale, marketing, and development of real estate projects to protect consumers rights
- Foreign Exchange Management Act, 1999 (FEMA): Governs the sale or purchase of immovable property in India by foreign persons and entities
- Foreign Direct Investment (FDI) Policy: Governs foreign investments in the Indian real estate sector
How Business Loan is Helpful to Start your Real Estate Business?
Property Acquisition: The primary use of a business loan for a real estate business is often to acquire properties
Operating Expenses: Starting a real estate business involves various operational costs, such as office space, utilities, insurance, and staffing
Marketing and Advertising: Effective marketing is crucial for attracting clients and tenants. A business loan can be used to implement marketing strategies, including online and offline advertising, to establish a presence in the market
Scaling the Business: As your real estate business grows, you may need additional resources to scale operations
Read also: Business Growth and Expansion - How to Grow Business?
How to Apply for a Business Loan to Start Your Real Estate Business?
If you are a self-employed professional with more than five years of experience, you can start your real estate business with funding from a Business Loan.
Here are the steps to apply for an instant Business Loan through Hero FinCorp:
- Visit the Hero FinCorp website or download the loan app.
- Provide a few necessary details.
- Scan and upload the required documents.
- A customer representative will contact you for further information.
- Get approval and accept the loan offer to initiate the disbursal process.
Conclusion
Remember, your real estate business’s success largely depends on the value you give to your customers. Stay updated on the latest market trends, prioritise customer service, and stay vigilant to meet your clients' needs and emerge ahead of the competition. When it comes to finances, obtain an instant Business Loan of up to Rs 40 Lakh from Hero FinCorp to steer your business in the right direction without any financial crunch. Hero FinCorp’s unsecured Business Loans come with attractive interest rates starting at 14%, flexible repayment tenures of up to 60 months and no usage restrictions.
Frequently Asked Questions
1. Is the real estate business profitable?
Considering the increasing demand for residential and commercial real estate in India, a real estate business is definitely a profitable idea.
2. Is there any real estate license in India?
You must register your business under the RERA Act to become a licensed entity operating real estate in India.
3. What type of business is best for real estate investment?
Residential real estate investment is the best type of business owing to the increasing demand, improving buying capacities, and easier availability of home loans in India.
4. How can I grow my real estate business fast?
Expanding the network, investing in marketing, using social media, and taking customer service seriously are the best ways to grow your real estate business fast.
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