The Indian real estate sector is expected to reach US$ 1 trillion by 2030 and will contribute 13% to the country’s GDP by 2025. Given the statistics, it is no surprise that many people are looking to enter the market.
While the industry is flooded with some established players, it is still a booming market with ample opportunities for the newcomers. Do you also wish to kickstart your entrepreneurial journey in the real estate industry?
Read on to find how to start a real estate business in India.
What is the Real Estate Business?
The real estate business involves the selling, buying, renting, and managing of properties. These properties can be residential, commercial, or industrial. The real estate business connects and allows business between property developers, buyers, sellers, and renters. The real estate business is one of the most lucrative business markets in India due to the ever-growing demand for housing and commercial spaces.
Also, read – 25 Best Small Business Ideas in India
8 Proven Steps to Launch Your Real Estate Business in India
Real estate can be one of the most profitable business endeavours for those who choose to pursue this market.
Follow the steps given below to start your own real estate business:
1. Conduct a thorough research
Like in any other profession, you need to research the subject before putting together a company strategy that will be a success.
The best place to start is to seek input from the old players in the business. As long as you do not come across as a competitor, they will gladly share their journey and overview with you. and give you some golden points that you can take along with you on your journey in the real estate business.
If you want to learn more, there are a few companies throughout India that conduct seminars and training for real estate aspirants. Participating in such events will increase your confidence and help you learn many new things.
2. Pick a specialty
Considering how diverse the real estate industry is, there are plenty of roles and opportunities to choose from. So start by researching the different professions available and decide on a domain that suits you. You can make a successful career in land investment, commercial brokerage, or residential brokerage, and so on. The trick is to focus on a single speciality and expand your business as you grow and learn.
3. Register your business
Now, the next step would be to register your business with the authorities. To begin with, you will have to register under RERA for the state you are operating in. You can hire a consulting firm to help you through the process. Once done, you’ll receive a RERA registration number as a reference for all future dealings.
4. Obtain a license
One of the most critical aspects of managing a real estate business in India is obtaining a license. Earlier licenses and registration used to be optional, but with legal developments and various real estate industry laws and regulations in existence, they are now essential.
After successfully registering your business, you need to obtain a real estate agent license, GST number, and service tax registration. But if you decide to work individually, you also need to file your Income Tax and provide the documents for RERA registration.
These days, it is uncommon to find a real estate agent without at least one of these. So, make sure you have these necessities before embarking on your business-related journey.
Additionally, getting licensed is crucial to start your journey right if you wish to get a loan at affordable business loan interest rates.
5. Develop a business plan
Whether you plan to start a real estate business, a departmental store or a paint factor- all of this requires planning. Writing your business plan will help you see your vision more clearly and help you to catch even the minute details you may skip, which can cost you money.
Therefore, brainstorm ideas and create a comprehensive business plan. Ask questions like:
What is your business vision?
How do you plan on funding the business?
How do you wish to expand?
Put your industry knowledge to use and identify your challenges, business competition, targeted areas, and more. Once you write your business plan, find a mentor who can help review your business plan and point out the loopholes or intricacies you may have overlooked. Many seasoned brokers and realtors look for assistance with existing real estate companies or potential future partners.
This business plan will not only provide you with a direction but also help qualify for a business loan. Take this as the groundwork for your business—the stronger the foundation, the stronger the building.
6. Expand your network
Want to have a successful run in the real estate sector? Get started on your networking! Especially when you are just starting out, you need to place yourself in situations that allow you to make new connections, meet new people, and provide value.
Once you’ve established your business, it is important to connect with people from the industry to expand your portfolio. This will help you create a valuable presence in the market and earn substantial business through your contacts.
And while you’re at it, don’t forget to advertise your business and create your online presence for better growth opportunities.
7. Build an online presence
Never undervalue the impact of establishing and maintaining a presence on the most significant websites to your target audience. Because today’s consumers conduct extensive online research before visiting a real estate website, they can evaluate different things from various perspectives while also saving money and energy.
As a result, your goal should be to develop a welcoming, educational, and really easy website that effectively conveys your thoughts. On the website, you can also promote some discounts and limited-time offers.
There are different real estate advertising methods, and the best advice is to try them all. Advertise on social media, and advertise in magazines.
8. Secure Funding
Securing funding is one of the crucial aspects to ensure early-stage success for your real estate business. It provides you with the necessary capital to launch your business and manage operations.
There are a number of funding options available for real estate business owners in India, including angel investors, bootstrapping, venture capital funding, business loans, etc.
The type of funding you choose can affect things such as ownership of your business. Thus, it is important for you to research and carefully evaluate your business needs before you step into the fundraising ecosystem.
Also, read – Real Estate AIF: Why it is the Prime Choice of HNIs
Top 10 Benefits of Owning a Real Estate Business in India
Starting a real estate business can be incredibly lucrative, especially in a growing real estate market such as India. With benefits such as high earning potential, career growth, asset accumulation, flexible working hours, and steadily growing market demands, this is a wise business venture for many.
Here are some of the key benefits of starting a real estate business in India:
1. High earning potential: Real estate is a highly profitable business venture which brings high returns through commissions, rentals, and property sales.
2. Flexible work schedule: Running a real estate business allows you to control your working hours and maintain a schedule that works the best for your daily needs.
3. Networking opportunities: Running a real estate business gives you the opportunity to build relationships with other professionals and clients in the industry.
4. Market demand: India’s growing real-estate market ensures a constant demand for housing and commercial properties.
5. Asset accumulation: A real estate business gives you the opportunity to invest in various properties, thus allowing you to accumulate personal wealth along with your business.
6. Diverse revenue streams: Real estate owners gain income from a variety of revenue streams, such as property management, sales, rentals, and consultancy.
7. Personal satisfaction: Running a real estate business will help you gain personal satisfaction as you help your clients find their dream homes or ideal business locations.
8. Career growth: A real estate business offers ample opportunities to scale and grow your business through partnerships.
9. Inflation protection: A real estate business can protect you against inflation as real estate properties often increase in value over time.
10. Tax benefits: Real estate offers several tax benefits, such as Section 80C and Section 24 which allow you to significantly reduce your taxable income.
Also, read – How to Calculate ROI on Rental Property
How Business Loans Can Fund Your Real Estate Venture?
A business loan helps in the following ways:
–It is primarily used to acquire properties, ensuring a strong foundation for your real estate business.
– It helps manage operational costs like office rent, utilities, insurance, and staffing needs.
– It allows you to invest in effective marketing strategies to attract clients and establish market presence.
– As your business expands, the funds support scaling operations and meeting growing demands.
Real Estate Business Models: Residential vs Commercial vs Industrial
Real-estate isn’t one-size-fits-all. Recognizing the fundamental business models will help an entrepreneur opt for a direction that fits their risk tolerance and long-term objectives.
- Residential real estate centres on housing formats such as apartments, villas, and plotted developments. It is typically volume-driven, with faster sales cycles and buyers influenced by lifestyle needs and emotional factors. Its demand is heavily driven by population growth, affordability, home loan rates, and government housing schemes, making this segment more responsive to economic changes.
- Commercial real estate includes office buildings, IT parks, co-working spaces, and retail properties. This model focuses on steady income through long-term leases, offering more predictable cash flows. While entry costs are higher, commercial properties usually benefit from professional management, lower vacancy fluctuations, and greater income stability.
- Industrial real estate covers warehouses, logistics hubs, manufacturing units, and data centres. Its growth is fuelled by e-commerce, industrial expansion, and improving supply chains. Though less visible to consumers, industrial assets often provide consistent returns, long leases, and strong demand from institutional players.
Also, read – Ready Reckoner Rate Meaning in Real Estate & How to Calculate RR
Complete Guide to RERA Registration for Real Estate Business
RERA registration is mandatory for developers and brokers operating in the Indian real estate market. Promoters must register projects with the state RERA authority before advertising or selling, submitting land titles, approvals, project timelines, and financial details.
Usually, agents handling plots, apartments, or buildings exceeding 500 sqm or eight units must register via their state RERA portal, such as MahaRERA or Delhi RERA, by:
- Creating an account
- Completing the online form with business details
- Uploading documents like PAN card, address proofs, photos, ITRs, company incorporation papers (if applicable), and a no-pending-cases declaration, then
- Paying fees (typically Rs. 10,000 for individuals and up to Rs. 50,000 for firms) followed by authority verification within 30 days to obtain a unique registration number.
This process enhances your credibility as a real estate agent, ensures legal commission claims, enforces fair practices, and avoids penalties like fines or imprisonment for non-compliance. Therefore, understanding RERA is a critical step in how to start real estate business operations legally and sustainably.
Cost Breakdown: Starting a Real Estate Business in India
Starting a real estate business in India as a brokerage or agency is relatively accessible compared to many other sectors. On a small scale, the initial investment usually ranges between Rs. 50,000 and Rs. 2 lakhs, depending on the city, business structure, and level of professionalism you aim for.
A significant portion of the budget goes towards legal and compliance requirements. RERA registration for agents is mandatory and typically costs between Rs. 10,000 and Rs. 50,000, depending on state regulations. Business registration as a proprietorship or private limited company, along with PAN, GST, and Shop Act licences, can cost Rs. 1,000 to Rs. 15,000 in total.
Office setup costs vary widely. In Tier-2 cities, monthly rents may start at Rs. 10,000, while metro cities like Mumbai or Delhi can exceed Rs. 50,000. To reduce expenses, many first-time founders opt for co-working spaces costing Rs. 6,000 to Rs. 12,000 per month. You must also account for some extra costs related to marketing, including a basic website, domain, and local promotions.
For those exploring how to start real estate business in India, budgeting a buffer of 20–30% is wise. While brokerage models remain affordable, property development typically starts at ₹50 lakhs or more.
Also, read – Delhi Circle Rates: Home Loan Guide
Emerging Trends in Indian Real Estate for 2026
As you look ahead to 2026, Indian real estate is clearly entering a phase of meaningful change. Technology, sustainability, and shifting lifestyle choices are shaping how you build, buy, invest, and operate in this market.
One of the biggest shifts you’ll notice is the growing focus on green and energy-efficient buildings. Developers are increasingly prioritising ESG compliance, lower operating costs, and long-term value, while buyers and tenants actively look for sustainable credentials before making decisions.
Technology is also becoming central to how the sector functions. Tools like virtual site visits, AI-based pricing models and data analytics will be seen making transactions faster, clearer, and more efficient for you and your customers. At the same time, formats like co-living spaces, flexible offices, and mixed-use developments are gaining popularity as work and lifestyle boundaries continue to blur.
On the investment side, industrial and logistics real estate is expected to outperform traditional segments. Growth in e-commerce, manufacturing incentives, and infrastructure upgrades is pushing demand beyond metros, with Tier-2 and Tier-3 cities emerging as strong growth hubs for your future plans.
Required Licenses and Permits for Indian Real Estate Agents
To operate legally, you must register under RERA with your state authority, along with PAN, GST, and a Shop and Establishment licence. RERA is mandatory for marketing registered projects and is valid for five years.
How Much Capital is Needed to Start a Real Estate Business?
If you’re exploring how to do real estate business as a brokerage, you can start with Rs. 50,000 to Rs. 2 lakhs. Metro cities require more due to rent, while Tier-2 cities allow you to bootstrap under Rs. 1 lakh.
Best Niches for Real Estate Investment in 2026
In 2026, strong opportunities lie in affordable housing in Tier-2 cities, logistics and warehousing near highways, and co-living spaces. These segments benefit from urbanisation, e-commerce growth, and government infrastructure initiatives.
ConclusionStarting a real-estate business can be a highly-profitable venture. India’s ever-growing housing and commercial property markets boost the odds of your business having long-term success. While there is no one-size-fits-all business-building strategy, careful business plannings, effective networking, securing the necessary funds, and staying on top of regulations will help make your business a success. Looking for reliable finance options to set up your new business? Your search ends right here with Tata Capital! With our wide range of loans for a business at affordable business loan interest rates, you can turn your real estate business idea into reality. Enjoy quick approval and disbursal, structured EMI plans, and flexible repayment tenure. Check out our business loan EMI calculator to plan your EMIs now.
FAQs
To legally operate in real estate, businesses in India must register under the RERA Act. This registration ensures compliance with regulations and establishes the entity as a licensed player in the real estate sector.
Build a strong network, use effective marketing, leverage social media, and focus on excellent customer service. These strategies help attract clients and grow your real estate business quickly.
Residential real estate is ideal for investment due to increasing demand, affordability, and easy access to home loans. It offers growth potential and stable returns for investors.
The required funds depend on the business scale. Typical costs include office setup, equipment, staff salaries, and property investments. Starting small helps manage initial expenses effectively.
Real estate is a stable and highly profitable business that offers ample opportunities for high earnings, asset growth, and inflation protection. With the rising demands for housing and commercial properties in India, real estate will prove to be a good business for anyone.
The biggest problem in real estate is market volatility. Changing economic conditions often affect property demand and prices and thus can lead to financial instability for agents and investors. Regulatory changes, financing issues, and industry competitions can also prove to be significant problems for a real estate business.
You can rapidly grow your real estate business through effective networking, investing in marketing, maintaining an online presence and providing excellent customer service.
The licenses required, if you’re learning how to do real estate business, include RERA registration from the state authority, along with PAN, GST registration, and a Shop and Establishment licence to legally operate as a real estate agent or brokerage.
A small-scale brokerage can start with Rs. 50,000 to Rs. 2 lakhs, covering RERA registration, basic office setup, marketing expenses, and initial working capital.
The answer to what is real estate business most profitable niches include segments like affordable housing, logistics and warehousing, co-living spaces, and commercial leasing in Tier-2 cities.
You can use personal savings, partner capital, bank loans, NBFC financing, or angel investors. Starting as a brokerage often requires minimal funding compared to development projects.
If you’re learning how to start real estate business in India, the essential technological tools you must invest in include CRM software, property listing portals, virtual tour platforms, digital marketing tools, and basic accounting software to manage leads, clients, and transactions efficiently.
08 January 2026
13 mins read
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