INN analyses the importance of being brand conscious in real estate. Prompt delivery, financial discipline, customized spaces is key. Both investors and buyers need to see builders walk the talk.
Sandeep Sadh, the CEO of a property portal, shariing branding nuances states, "The developers could be having a project in certain pockets of the city or he might have his presence in other cities as well. However, as compared to a consumer durable brand, there can't be a clear-cut market leader in the real estate sector.” A builders differentiating factor is vital, but that is based on his ability to deliver and also financially manage the project first.
Trust is an important element of any real estate brand. While buying a property, maximum home buyers invest their hard earned lifetime savings. One would be afraid to invest their precious savings in a company which is a new entrant in the industry or someone with a low reputation. Home buyers would choose a real estate brand that is of repute, has a long legacy of trust and fulfillment of promises. Unlike other sectors where the buyer has the option of changing the brand, in case of real estate, maximum home buyers do not have the choice of changing the brand after buying the product."
Showri Reddy, the Managing Director of Pooja Ventures, says, "Our branding strategy is mainly differentiating in design. However how you execute your projects is how you build a brand in real estate. What we do with our company is try to provide customers with exactly what they require. For example, our boutique project in Gachibowli is defined as living with open spaces. "
Kalyan Reddy, the director of Pranit Homes, agrees. "There's a lot of difference in the real estate sector based on how people perceive real estate itself, and a lot hinges on competition and competitors. You reach your customers in different ways, but mainly by differentiating yourself from the rest, and through commitment. Materialistic specifications can be matched by anyone - from specifications of the home to the kind of tiles and fitments - so what it is important to the brand is intangible things, like the environment and conception of the home. You make up for urban lacks like greenery, security and things that nurture the soul, where there aren't alternatives that can be paid for with money."
In India, branded developers have been responsible for changing the scenarios in a particular location. "For example look at Powai. Hirandani Group was instrumental in changing the entire scenario there. Gurgaon was like a sleepy hamlet before DLF came there. Now, there is a huge demand for property in Gurgaon from top Indian and multinational companies," Sandeep Sadh points out.
Kalpana Murthy, the Associate Director, Residential Services, at Cushman & Wakefield says, "The degree of identity for any real estate company is its branding and recollection of the brand. In real estate, much like any other, branding and recall is critical to establish business for generations and product identification. The legacy for an established brand is backed by the people behind the brand and who have walked the talk. Brand recall has no time limitations. Therefore branding of any product or business is very critical."
Manju Yagnik of the Nahar Group adds how a "number of real estate companies are listed on the stock exchange and public money is included in real estate development. Each company is involved in a fierce competition and has been using every element to win the race. Real estate can be compared to the Fast Moving Consumer Goods (FMCG) where competition is equally fierce and strong branding campaigns are used to stand tall. In the real estate sector, the customers stay in the project, use the amenities and have a complete experience of what is said and committed by the developer. Branding today is a crucial part of the real estate industry and a strong element to express its uniqueness."
Unlike in other sectors where using a film or a sports celebrity to promote the company is common, the same is of little importance in the real estate sector.
"Employing a celebrity for the company or the project may help in catching the eyeballs but in the long run it doesn't help much," says Niranjan Hiranandani, chairman and managing director of the Hiranandani Group. According to him, a new company which is yet to make a name for itself, could rope in celebrities to help create awareness about the project. "No one would rush to buy a house just because a celebrity is endorsing it. Real estate is the biggest investment for most people, so they take in their time and do a lot of research about the developer and his earlier projects. Once they are finally assured, only then would they go ahead to buy it," he points out.
On the contrary, Yagnik feels that "Brand ambassadors are an essential part of the brand building exercise. Brand ambassadors have also been lately used by well-known developers for creating awareness about their product."
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