In the post-Covid era, asset-light franchise models can be gamechanger for the subdued Indian real estate sector, according to a report by 360 Realtors.
The report noted that propelled by a large population, a rapid and consistent rise in urbanisation and a boom in the middle-income households with a higher disposable income, there is a large aggregate demand for real estate properties.
In addition, other macroeconomic factors such as a reduction in home loan rates, correction in the value of rupee, among others, are further driving the market and infusing it with a strong momentum.
However, the Indian real estate still remains largely unorganised with a large number of transactions taking place through individual brokers alongside small and mid-sized enterprises. In a post-Covid world, when the role of technology and digital marketing will further rise exponentially, a lack of such resources might be detrimental to overall growth, it said.
"A viable solution to reverse the scenario lies in building asset-light franchise models that are underpinned on symbiotic sharing of resources and market know-how, credible institutional support, regularly qualified lead flows and prudent profit sharing between the franchisee and the parent company," said the report titled 'Opportunities In Indian Real Estate Post Covid'.
Leveraging the infrastructure of the parent company, franchisees can successfully build asset-light businesses and grow fast without incurring high capital and operational expenses, it added.
"To bring about a well-rounded and effective approach towards building higher profit margins for brokers, 360 Realtors launched '360 Edge Franchise', a one-stop-realty hub where customers can buy and invest in both residential and commercial real estate projects across 20 cities of India," said Ankit Kansal, Founder and MD, 360 Realtors.
As a part of the partnership, brokers partnering with 360 Edge gain access to business blueprints and strategies to revamp their business models and leapfrog towards a steeper profit trajectory, it said.
Sahil Kapoor, the National Head for 360 Edge, said: "The franchise will get to use the credible brand name of 360 Realtors, which will help in easy brand credibility and brand recall. In the capacity of a franchise, one would be able to market and sell projects from around numerous Grade-A developers, with whom 360 Realtors has tie-ups."
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