Technology and Planning in Real Estate Business

Becoming an entrepreneur involves various plans, decisions, and economic conditions. It requires continuous effort and hard work as the foundation. In today's era, where numerous business opportunities are abundant, the real estate sector has a traditional business background.

 Adapting to Modern Technology

At the same time, it has adapted itself to modernized technological methods. According to experts, in the past few years, the structure of the real estate market has evolved into various subdivisions based on commercial and civilizational changes.

 Emotional and Legal Aspects of Real Estate

The real estate sector is not just a commercial transaction between buyers and sellers. It involves the emotional process of transferring the ownership of various immovable properties like houses, plots, land, and plantations from one person to another, based on economic valuation and legal procedures. Therefore, those who wish to venture into this field through a real estate business plan must have a good understanding of the basic mindset and economic background of customers who intend to buy houses or plots. This understanding will help them create trust and confidence in their business dealings.

 Knowledge of Legal Documents

It is crucial for individuals creating a real estate business plan to have thorough knowledge of legal documents such as patta, chitta, encumbrance certificate, and FMB (Field Measurement Book). They should also be well-versed in the real estate laws and regulations of the state in which they operate. Additionally, a basic knowledge of business jargon and Vastu Shastra related to the real estate sector is considered an added qualification.

 Market Value of the Real Estate Sector

The real estate sector, with a market value of nearly ₹20,000 crores in 2019-2020, is the second-largest sector after agriculture at the national level. Here, we can explore in detail how to outline a real estate business plan as an entrepreneur. Real estate entrepreneurs must definitely consider and act on this information.

 Roles in Real Estate

One can pursue a career in real estate as a builder, developer, or real estate agent. A builder is someone who constructs a project with their own investment and sells it to customers. A developer is someone who divides land in a specific area into plots according to government regulations and sells them to customers based on market conditions. An agent, or real estate broker, acts as an intermediary between builders or developers and customers, facilitating transactions based on a commission percentage. All three professionals operate legally in the real estate sector.

 Investment and Legal Registration

For builders and developers, the primary concern is investment. The business status is determined by how they secure this investment, whether through partnerships or bank loans. Builders, developers, and agents must register themselves under the Real Estate Regulation and Development Act (RERA) to legally conduct their business. Without such registration, their business activities will not be legally recognized. Only if builders and developers are registered under RERA can they avail of bank loans and other government benefits. Additionally, real estate brokers should not engage in business activities without RERA registration.

 Compliance with RERA

Builders and developers must ensure that any project is registered under the respective state's urban and rural development authority according to RERA regulations and obtain the necessary registration numbers. Furthermore, proper building permits or approvals for housing plans must be obtained from the local authorities in the project's area to conduct sales activities.

 GST Registration and Tax Compliance

Builders and developers must definitely be registered for GST. Real estate agents must submit their income tax certificates according to RERA regulations.

 Residential and Commercial Projects

In terms of house sales in the real estate sector, there are two main categories: residential projects and commercial projects. Residential projects involve the construction of houses for living, while commercial projects pertain to business and commercial constructions. Different business approaches are necessary for these two sectors.

 Detailed Approach for Real Estate Agents

The approach for real estate agents must be very meticulous and precise. Given the high value of properties, agents must cater to the desires of customers or property owners. Additionally, there should be no legal complications with the property intended for sale. Clear documentation in revenue records (patta) and registration records (deed) is essential. Real estate agents must also have a clear understanding of inheritance and will-related issues.

 Budgeting for Advertising

Builders and developers must allocate a specific percentage of their budget for advertising at the start of any project. Advertising is crucial for making customers aware of a project. Subsequently, customers will inquire about the project with the builder or developer, visit the project site, and make a decision based on their satisfaction. Until then, the builder or developer must patiently clarify various aspects as per the customer's preferences.