Realty check: Branding comes to the fore as demand shrinks

Few issues are as emotive for Indian consumers as the buying of property. It can be premium property or otherwise, commercial or residential—real estate is often the subject of heated discussion, debate and controversy. The realty sector in India has been grappling with its own set of problems over the past few years, chief among them being a slump in demand, excess supply, delays in completion of projects and a view among buyers that despite the economic downturn, prices are still artificially inflated. With a new government taking charge in New Delhi last year, there were expectations that the sector would begin to look up. However, even as the biggest names in the business are busy putting up projects, there’s no real uptick in sight yet.

It was against this backdrop that Forbes India’s team of writers began speaking to prominent names across the country for the real estate special package in this issue, seeking to join the dots and piece together a complete picture on the state of Indian realty. What came through was this: The sector continues to grapple with serious challenges, and no one is certain about when its fortunes will improve. Amidst all this, some of the biggest names are seeking to navigate the choppy waters by differentiating themselves through branding and wooing the buyer with add-ons, even joining hands with global brands in the process.

The Lodha Group and the Godrej Group, for example, form two ends of the spectrum—while Lodha is aiming to create an aspirational brand by joining hands with marquee names like Trump and Armani, Godrej is seeking to build on the credibility of the trusted corporate brand. And the reasons for this strategy are not far to seek: In a choppy market, the buyer is king, and wooing him will take far more effort than just a brochure. Consequently, most big real estate brands are now adding to their marketing and advertising arsenal in a bid to ramp up sales. In fact, brands today make up more than 50 percent of total residential sales in India. In this scenario, one bright spot appears to be commercial property, where an impending supply shortage has led to the perception that buyers who come in now may make gains in the coming days. Whether that assumption is correct will remain to be seen. There’s this and more on real estate in this issue.

For the many admirers of Satyajit Ray, one of India’s foremost intellectuals and filmmakers, this issue has a rare treat. On the occasion of the master’s 94th birth anniversary on May 2 this year, we bring you a rare unpublished interview where Ray speaks on a range of subjects, including his craft, and being treated like a superstar. 

Best,
Sourav Majumdar
Editor, Forbes India
Email:sourav.majumdar@network18publishing.com
Twitter id:@TheSouravM