The real estate sector in India has witnessed a rise in the prominence of branded developers over the past two decades. In the aftermath of Covid-19, homebuyers are showing a strong preference for properties developed by trusted branded developers. An estimated 70% of the real estate projects in major Indian cities are now undertaken by such reputed developers.
When considering purchasing a home, most buyers are inclined to opt for properties developed by these branded players. But what sets a strong brand apart in the real estate industry?
In essence, a branded real estate development firm is one that enjoys widespread recognition and trust. It does not necessarily mean that the developer is a national player or listed on the stock exchange.
Many Indian cities have developers with a strong local presence, whose names are widely recognized. These developers have created a distinctive identity and reputation for their projects in the market.
However, building such a reputable brand is no easy task. It requires substantial and consistent investment in creating brand equity and recognition over the years. While marketing strategies, such as public relations campaigns, high-visibility advertising, and a strong social media presence, play their roles, no real estate brand, especially in the residential segment, can solely rely on marketing to establish itself.
As Seth Godin, a famous author and speaker, aptly puts it, “Brands, like people, have personalities. They occupy a space in our minds.” In the realm of real estate, Jeff Bezos, the CEO of Amazon, comes even closer to the truth when he says, “A brand for a company is like a reputation for a person. You earn a reputation by trying to do hard things well.”
Indeed, developing quality residential real estate is a challenging and complex task that demands dedication and resources to execute successfully.
Key Attributes of a Branded Developer:
- A Proven Track Record: A branded developer consistently delivers homes to buyers within the committed timeframe. Any delays, if any, are transparently communicated, and reasons are evident and understandable to the buyers. Financial constraints do not lead to project delays or disruptions.
- Financial Stability: A strong brand continues to attract buyers even when non-branded products lose appeal. Branded developers maintain financial stability and have access to institutional funding, ensuring steady cash flows into their projects. This minimizes the risks of project delays or abandonment. A robust balance sheet is a compelling endorsement of a strong brand.
- Consistent Construction Quality: A branded developer ensures uniform construction quality across all their projects. They use top-notch materials and uphold excellent workmanship. Official certifications such as ISO 9001-2000 validate their consistent and process-driven construction practices.
- Transparency and Compliance: Transparency is a hallmark of a branded developer. They adhere to all RERA guidelines and practice high corporate governance and ethical business conduct. The selling prices for their projects are declared and consistent for all buyers.
- Customer-Centric Approach: Branded developers are highly responsive to customer needs and feedback. They invest substantially in post-sales service and relationship management, ensuring a long-term association with their past customers.
- Significant Marketing Budgets: Branded developers allocate substantial budgets for advertising and digital engagement. They work with reputed advertising agencies to create high-quality messaging that resonates with the target audience. Their brand-building efforts extend beyond individual projects.
- Premium Amenities and Sustainable Designs: Branded developers invest in superior amenities, such as swimming pools, gyms, and community spaces, in their township projects. They also prioritize innovative, space-saving, and sustainable designs that reduce the environmental impact of their projects.
In conclusion, while branded developers may come with higher premiums, their projects offer homebuyers greater peace of mind regarding project execution and asset quality. Properties developed by reputed brands tend to appreciate better in value compared to those by unknown local builders, primarily due to the premium associated with the brand name. The increasing success of branded developers in the Indian residential real estate space is not only a victory for them but also a reflection of their customers’ satisfaction and trust.
