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.
Steps to Start a Real Estate Business
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 thereal 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 speciality
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.
Additional Read – Do You Need to Pay a Down Payment for a Business Loan?
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.
Additional Read – Common Hurdles to Tackle While Availing Business Loan
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.
Benefits of Starting 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.
How Business Loan is Helpful to Start your Real Estate Business?
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.
Conclusion
Starting 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.
21 April 2025
8 mins read
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