Over the years, the dynamics that define a developer’s brand image, have changed rapidly, in the Indian real estate market. Critics, who question whether brand name really matters in the real estate market, have their own valid reasons. Of late, the performance of regional emerging players, vis-à-vis the market giants by size, has led to a growing perception that developers primarily need to focus on timely delivery and fulfil the promises that they made; brand recognition is not that relevant, in the real estate sector. Some critics even doubt, whether a real estate buyer would ever pick a house, based on the brand name of the developer.
If the larger players in the Indian property market are, today, losing out to the emerging developers, it does not indicate an erosion in brand value. Rather, it indicates a change in the dynamics of brand recognition. Consequently, those who associate brand equity with market size or revenue alone – which also means more advertising clout – are losing out to entrepreneurs, who are focussed on positioning their brand in the right context.
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A level playing field
In the past, larger developers could provide a larger band of information, through listings and other advertising communication. However, the internet has now provided a level playing field to all developers, big or small. A majority of the people, who are searching for homes today, are doing so online. Hence advertising clout alone, is not synonymous with brand name. Contemporary buyers, are better informed and have more choices at their disposal, in the housing market.
“I am not bothered about the market perception of the developer,” asserts Aman Aggarwal, a home buyer from Gurgaon. “Of course, I won’t deny the fact that some of the big names do carry an aspirational value, for an average home buyer, like me. However, a colleague of mine, shared his experience with a reputed developer, who failed to provide basic facility management services, in his project. Hence, I have decided to buy a house from a lesser-known developer, who is trusted in my peer group,” he explains.
Catering to consumers
Developers, too, are aware of this changing reality. David Walker, MD of SARE Homes, admits that building a positive brand image, in the Indian real estate sector, can be more challenging than in other domains. This is because the sector has been largely unorganised, with no single official regulator to ensure that all stakeholders follow the same rules. “Any brand building exercise or communication campaign will fail, if the target audience is not clearly identified and the communiqués not customised to suit that specific consumer group. In this context, real estate is no different, from the other domains,” points out Walker.
While buyers in the luxury segment may be contributing significantly to a developer’s revenue, they are so small in number that they cannot shape the reputation of the developer and his company’s brand image. Developers, who are conscious of this emerging market reality, are likely to fare better in today’s market.
(The writer is CEO, Track2Realty)
Ravi Sinha is a journalist with nearly two decades of cross-discipline media exposure. He is the CEO of real estate think-tank group Track2Realty. He has been writing extensively on the real estate sector for nearly a decade. Evaluation of real estate brand performance is his expertise and he has immense insight into consumers’ psychograph in the property market.
Twitter: https://twitter.com/ravitrack2media
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