Several factors including market research, pricing, branding, advertising and promotion coupled with web-based marketing have made a heady brew that made the land prices and apartment costs soar sky-high in the last one year. This is a classic case of the integration of all the three ingredientscreating, communicating, and delivering valuewhich revolutionized the thinking of most young professionals with lot of expectations and earnings to match. They are the real customers behind the real estate boom. It all started with a phenomenal growth in the Information Technology (IT) companies which hired personnel with huge pay packets. Housing, a vital need, naturally beckoned the real estate promoters and developers to take advantage of this situation. The construction of a large number of IT malls and parks all over the country is one of the key drivers which fueled the growth of the property market. Not only the metros, but also the tier-2 and tier-3 cities are engulfed in this boom. Such a surge makes the market researchers wonder how long the bubble would last and whether it is going to burst in the near future.
The
Indian real estate marketing scene was characterized by
a lot of hectic activity during the last three years. Land
value across the entire country-metropolitan cities and
smaller towns-registered a phenomenal growth. Several factors
encompassing market research, pricing, branding, advertising
and promotion, coupled with web-based marketing, made a
heady brew that resulted in soaring land and apartment prices
in the recent past. This is a classic example of the integration
of all the three ingredients-creating, communicating and
delivering value-which mostly revolutionized the thinking
of young professionals with a lot of expectations and earnings.
These young professionals are the main customers behind
the real estate boom.
Indeed,
a consistent growth rate of 8-9% in the Gross Domestic Product
(GDP), along with increasing levels of income in the business
and IT sectors, has led to the present situation. Not only
the housing, but also the office, commercial and retail
business, hotel rooms and mega stores including shopping
malls and hyper markets are in this picture. Some estimates
indicate that the market is poised to grow by over 30% during
2005-2010 and may reach a whopping $50 bn or Rs. 2,20,000
cr. About 20 million new housing units are likely to be
created in the next five years. A fivefold increase in office
space is also envisaged. |
