Real estate involves the buying, selling, and development of land and properties, including residential, commercial, and industrial assets. The real estate business is a dynamic industry that drives economic growth by providing investment opportunities, creating jobs, and fulfilling housing and infrastructure needs.
What is the real estate business?
The real estate business involves buying, selling, renting, and managing properties, including residential, commercial, and industrial assets. It serves as a crucial sector that supports economic growth and fulfils housing and workspace needs. Real estate businesses operate by connecting buyers and sellers, property developers, or renters, facilitating transactions and property management. This industry also includes property investment, where investors purchase assets to earn returns through resale or rental income. Real estate businesses in India are subject to regulatory taxes, including GST on real estate, which impacts property transactions and service costs. With a strong demand for housing and commercial spaces, the real estate sector presents lucrative opportunities for individuals interested in property management, brokerage, or real estate development.
Steps to start a real estate business
If you are considering starting your own real estate business, here are 5 important steps to help you get started on your entrepreneurial journey.
1. Identify profitable real estate niches in your area
As with any business, the first step in starting a real estate business is conducting market research to identify a profitable area. Here are a few things to consider as you start your research:
- Property types: Are there a lot of residential homes in your area for sale, or are you planning to focus on commercial real estate?
- Emerging market trends: Local market trends will shape your business strategy and influence buying habits. For instance, identifying up-and-coming areas with potential for growth and development can help you guide clients toward properties that are likely to increase in value over time
- Target customer demographics: Think about the type of clients you want to work with, such as first-time homebuyers, experienced buyers looking for specific types of properties, or businesses in need of suitable commercial spaces
2. Develop a business plan and set financial goals
A well-crafted business plan, which includes your mission, vision, and values, will form the foundation of your business and keep you on track as you grow. It is also important to define your financial goals, which should be clear, measurable, and achievable.
Set goals for different time frames, such as one year, five years, ten years, and beyond. Having written goals will keep you motivated and show any potential investors where you plan to take your business.
3. Obtain the necessary education and licensure
To become a licensed real estate professional in India, you will need to follow certain steps. Make sure to check your state’s specific requirements, as they may vary:
- Take the pre-licensing course: Enrol in your state’s pre-licensing course to learn about real estate laws and regulations, so you can operate legally and professionally
- Pass the exam: After completing the course, you will need to pass the relevant examination
- Submit your application: Apply for your license and pay any required fees
- Work under a real estate broker: Most states require you to work under a licensed broker for a certain period, typically two years
- Take the broker course: Once you have enough experience, you can take the broker pre-licensing course and pass the exam
- Submit broker application: Finally, submit your broker application and pay the necessary fees, usually between Rs. 150 and Rs. 200
4. Build a professional network and market yourself
Building your personal brand and marketing yourself should be an ongoing effort throughout your real estate career. Look for ways to creatively engage with your target audience. For example, you could share helpful insights such as an analysis of the local property market trends to connect with potential clients.
Many real estate professionals use a Customer Relationship Management (CRM) system to manage their contacts and track clients through the buying process. It is also a good idea to attend industry events and network with other realtors for potential referrals.
5. Develop a brand and create a website
Using your mission statement and values as a foundation, create a website to showcase yourself to potential clients. This website will be their first impression of you, so it is important to make it professional, clean, and easy to navigate.
Make sure to include multiple ways for clients to contact you, such as phone numbers, email addresses, and social media links. As you gain experience and build a sales history, you can add successful transactions to your website, with photos of the properties and testimonials from satisfied clients. Once your website is live, ensure it is optimised for search engines, so clients and agents can easily find you online.
By following these key steps, you will be well on your way to establishing a successful real estate business in India.
Cost to start real estate business
Starting a real estate business involves initial costs across various areas, including registration, licensing, marketing, and technology.
- Business registration – Costs for registering your business with the MCA or other authorities.
- Licensing fees – Expenses for obtaining the necessary licences to operate legally.
- Office setup – Rent, office equipment, furniture, and utilities for a functional workspace.
- Marketing expenses – Costs for advertising, online marketing, and printed promotional materials.
- Website development – Investment in building a website and digital marketing tools.
- Professional fees – Consultancy fees for legal, financial, and property professionals.
- Travel costs – Expenses for site visits, client meetings, and other real estate activities.
- Software and technology – CRM software, listing portals, and other tech tools for efficient operations.
Benefits of starting your own real estate business
Starting a real estate business can be highly rewarding, offering multiple advantages for entrepreneurs.
- High earning potential – Real estate provides lucrative returns through commissions, rentals, and property sales.
- Flexible work schedule – You can control your hours and work independently.
- Asset accumulation – Opportunity to invest in properties, growing personal wealth alongside business.
- Diverse revenue streams – Generate income from property management, sales, rentals, and consultancy.
- Networking opportunities – Build valuable connections with industry professionals and clients.
- Market demand – Constant demand for properties in residential and commercial sectors.
- Career growth – Real estate offers opportunities for expansion and scaling through partnerships.
- Personal satisfaction – Fulfilling to help clients find homes or suitable business locations.
Conclusion
Starting a real estate business can be a profitable venture, especially with India's growing demand for housing and commercial properties. A well-prepared approach, supported by effective networking, online presence, and regulatory compliance, lays the foundation for success. Entrepreneurs may consider a business loan to cover initial costs, secure office space, or fund marketing activities. With dedication, real estate offers substantial financial rewards and growth potential.
