Residential Real Estate (Image Source: iStockphoto)
The role of Real Estate Mandate players is to bring in numerous expertise as a unified offering that helps the developers to complete the project without any hindrance, making the project profitable and improving the developers over-all financial positioning by effectively addressing the uncertainty of the business.
Residential Real Estate: A Growing Investment Opportunity
Real Estate still remain one of the most prolific investment destination in India and the growth of this industry in the past two decades has been phenomenal. With rapid urbanisation, infrastructure development, improved employment opportunities across locations, technological advancements and the rise in the number of nuclear families has strongly peaked the demand for homes across India. As per research reports, the Residential Real Estate (RRE) market is expected to grow from the current $182.14 billion to $550 billion by 2028 registering a CAGR of 24.77%.
Real estate also remains one of the more favourable investment instruments in India, compared to other investments, as it has a relatively low-risk average, carries long-term capital growth, yields regular rental income and has tax benefits. Real estate is still considered one of the safest investment platform in India.
Scaling to Selling: New Opportunities. New Challenges.
With increasing urbanisation, rising cost of units and demand for tech enabled quality homes, many developers have realised that scaling and selling of the project has become far more challenging with increasing competition and the foray of reputed brands into micro markets.
To improve on their offerings, developers now need to build expertise across all business functions like Marketing, Sales, Legal, Technology and in raising funds to successfully complete and sell their projects. This comes as an additional cost burden on the developer, and it is equally hard for them to recruit and retain this kind of quality talent. Mandate players absorb the time related overheads for the developers thus enabling them to remain leaner and focussed.
Real Estate Mandate Players: Expertise Unified
The Real Estate Mandate Players are third party service providers who come equipped with a team of experts across important business functions like Marketing, Sales, CRM, Construction, Legal, Regulatory and Technology amongst others. These mandate players are exclusive project partners that provide a 360-degree support to the developers and, if needed, also help in raising funds to enable the developers to complete their project in time and without any hindrance.
Over the years, these mandate players have contributed immensely to the success and growth of numerous real estate developers in India.
Improving Efficiency in Project Development:
The mandate players streamline the entire development process through market analysis, feasibility studies and risk assessments to identify opportunities, optimize project planning and mitigate any potential risks associated with the development of the project. By providing valuable insights into market trends, consumer preferences and regulatory requirement, these service providers enable developers to make informed decisions that can improve project efficiency and profitability by compressing the time project completion and reducing the interest during the construction period amongst others.
Access to Capital and Funding:
Every project development is heavily dependent on access to capital and continuous funding. For many developers, these mandate players act as catalysts in connecting developers with investors or lending institutions. It is their network and their brand trust that helps developers secure funding quickly and at competitive rates to facilitate uninterrupted project development. Additionally, by structuring capital allocation, these service providers help developers in optimizing their available financial resources for sustaining project development.
Negotiations and Partnerships:
The mandate players come with a strong industry network that also spans across all annex services like contractors, suppliers, technology providers, designers, and other leading Brands for strategic tie-ups and project partnerships. These service providers negotiate and structure deals with other providers, on behalf of the developer, at reduced costs to save cash outflow, enhance offerings and improve the overall positioning of the project and ROI on investments.
Operational and Compliance Risks:
Compliance with regulatory requirements and mitigation of operational risks are crucial aspects of real estate development.
Mitigating operational risks like construction delays & cost overruns, navigating complex regulatory frameworks and legal disputes are few of the expertise of these mandate players bring to assist developers in ensuring adherence to legal norms and industry standards. This helps the developers to preserve cash flows and follow project timelines.
Overall, the role of Real Estate Mandate Players span across various facets of project development, strategic planning, financial optimization, risk mitigation, market positioning and securing project funding. With their expertise and network, they play an instrumental role in improving cash flows, enhancing financial positions and ultimately driving the success of real estate development ventures.
This article has been written by Pushpamitra Das, Founder and Director of Justo Realfintech.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of Times Network.)