By Ramakant Chaudhary
The real estate market in India is a dynamic and ever-evolving sector that plays a crucial role in the country’s economy. Despite facing headwinds of tightening global financial conditions triggered by the black-swan events like Covid and geopolitical hegemony owing to Russia-Ukraine war, the real estate sector has experienced impressive growth in recent years with its demand getting momentum.
Within the multifaceted realm of real estate, encompassing residential, commercial, industrial, and retail properties, one discerns a remarkable engine of employment generation, infrastructure evolution, and the overarching economic prosperity of the nation. In this vibrant and highly competitive industry, the role assumed by Public Relations (PR) agencies emerges as nothing short of pivotal. These agencies, through their deft orchestration of communications, contribute substantially to the art of sculpting perceptions, forging indelible relationships, and burnishing the reputations of real estate developers and their ambitious projects.
The residential real estate segment has traditionally been a significant part of the market, driven by demand for affordable housing, rising income levels, and government initiatives such as Pradhan Mantri Awas Yojana (PMAY) that promote affordable housing. The residential real estate ecosystem in the country has been robust with astounding sales records in 2022, witnessing a major real estate boom in Tier 2 and Tier 3 cities and continuing the growth momentum in hurly-burly of the global slowdown. The commercial real estate segment has also been on the rise, with a growing demand for office spaces from various industries, especially in IT hubs and business districts of major cities.
Mixed-use developments have gained significant traction as a new trend in the real estate sector, transforming the urban landscape and catering to the evolving needs and preferences of its residents. This trend reflects a growing shift towards creating integrated communities that combine residential, commercial, retail, and recreational spaces within a single development. According to a joint report, named as “India Real Estate: Vision 2047”, India’s real estate industry may expand to USD 5.8 trillion by 2047, which will contribute 15.5 percent to the GDP from the current share of 7.3 percent.
High return on investment
In recent years, the government has implemented several regulatory reforms to enhance transparency and protect homebuyers’ interests. The Real Estate (Regulation and Development) Act, 2016 (RERA) and the Goods and Services Tax (GST) are some of the significant reforms that have impacted the industry. India has been attracting foreign investment in its real estate sector, especially in commercial properties and infrastructure projects. Foreign investors see the potential for growth and returns in the Indian market. According to a recent industry report, India could see sales in the real estate to the tune of USD 1 trillion by 2030, contributing 13 per cent to the gross domestic product (GDP) by 2025.
According to the real estate experts, sentiment of Indian homebuyers has been positive because of a suitable market ecosystem. Also, a pause in RBI’s rising repo rate and dazzling domestic economic outlook will help the housing market sentiment buoyant. They are of the firm opinion that the fundamentals of the Indian economy as well as the dynamics of its market will keep the booming business of real estate industry rolling on despite global headwinds.
Robust housing demand
According to a recent report prepared jointly by Credai, Colliers, and Liases Foras, home price in India has increased 8 percent during January – March period of 2023 with Delhi-NCR registering a humongous surge of 16 percent, closely followed by Kolkata and Bengaluru with 15 percent and 14 percent year-on-year increase respectively. The tangible reason behind such a steep surge in home prices is said to be robust housing demand and consistent quality launches by high-end developers.
The Indian economy is on the cusp of becoming a world leader. Soaring urbanization, larger disposable incomes, and a rise in GDP per capita script a rosy picture for the real estate market in 2023. Despite sluggish trends in the global economy, India’s strong growth potential paves the way for the high demand for offices and commercial space in Tier 1 and Tier 2 cities. Catering to the needs of young growing India, the coworking sector — coworking is a situation that allows several workers from different companies to share an office space– as media report suggests, may cross 50 million sq ft by the end of the year 2023 that would be a year-on-year 15 percent surge.
Real estate builds up on strong economic conditions
The real estate market, as experts feel, appears bullish on the future of its economy in 2023, as India, now proudly holding the title of the world’s fastest-growing major economy, has achieved a remarkable 7.8 percent economic growth during its first quarter, surpassing even China. The residential and office market will be spurred by several factors like strong economic conditions, financial stability, GDP growth, healthy supply and demand dynamics, and regulatory framework. The RBI monetary policy, which kept repo rate unchanged, could have far-reaching significance for the home finance and real estate market.
Finance Minister Nirmala Sitharaman has underlined “Green Growth” as a priority. Several organizations are efficiently working on the concept of sustainable and green living. An increase in the allocation for the Pradhan Mantri Aawas Yojana (PMAY), earmarking around ₹ 79,000 crore for the flagship scheme, will boost the economy related to the housing sector.
Unlocking Doors: How PR Opens Real Estate Opportunities
The burgeoning real estate sector is currently entrenched in a landscape marked by intense market competition. As urbanization continues to drive demand for residential, commercial, and industrial spaces, real estate developers are engaged in a relentless battle for market share and consumer attention. Realtors do not leave a single stone unturned to build the brand image of their companies and remain ahead of others in the real estate market looking for the slightest competitive edge over others. In order to manage brands and build their reputation, real estate companies take help from Public Relations agencies. A successful PR campaign zooms out the image of the real estate company in the public domain.
Public relations (PR) plays a crucial role in the real estate industry, helping real estate companies and developers promote their projects. The efforts of Public Relations aim to build credibility and trust with the public, potential buyers, investors, and other stakeholders. This is achieved by showcasing the company’s track record, highlighting successful projects, and emphasizing transparent business practices.
PR professionals rescue during crisis
PR creates press releases, organizes press conferences, and pitches story ideas to journalists to secure media coverage for new projects, milestones, or industry trends. PR professionals in the real estate industry work with media outlets to generate positive coverage for their clients. Real estate companies sometimes face challenging situations or crises, such as negative media coverage, legal issues, or public controversies. PR professionals are responsible for managing and mitigating such crises, ensuring timely and accurate communication to protect the company’s reputation.
In today’s digital age, online reputation is critical. PR professionals monitor online conversations, respond to customer feedback, and manage social media accounts to maintain a positive online presence for the company. Real estate companies often organize events like property launches, open houses, or industry conferences. PR professionals plan and execute these events, inviting key stakeholders and media to create buzz and coverage around the projects.
Overall, public relations in the real estate industry is essential for creating a positive image, fostering relationships with stakeholders, and achieving business goals in a competitive market. It helps real estate companies stand out, attract buyers and investors, and navigate through various challenges and opportunities. A real estate company must meticulously choose the right PR professionals. PR serves as the master key that unlocks doors of opportunity in the real estate industry. It is the bridge that connects developers, investors, buyers, and communities. Through strategic communication, relationship building, and a deep understanding of market dynamics, PR professionals ensure that the doors to success remain wide open in this dynamic and competitive sector.
Ramakant Chaudhary works with PR Professionals as Content Head, and has formerly worked in various editorial roles with Financial Express, Mint (Hindustan Times Group), The Times Of India, Jagran Post (Dainik Jagran Group), The Pioneer, and The Political and Business Daily. He writes on politics, government policy, economy, infrastructure, real estate, social issues, lifestyle, and health.