role channel partner in real estate market

Submitted in Partial Fulfillment of the Requirement of Master of

Management Studies (MMS) of University of Mumbai.

Faculty Guide

Company Guide

(Prof. Seema Laddha)

(Mr. Sharad
bhanushali)

Submitted by:
Vikas vijay desai
Div:B

Roll no:48

Batch: 2014-16
Specialization: Marketing

NCRDs Sterling Institute of Management Studies,

Plot No 93/93A, Sector 19, Near Seawoods Darave Rly Station,
Nerul (E), Navi Mumbai-400706

ACKNOWLEDGEMENT
It has been a very rewarding experience working with the Sales department of Square Yards
Consulting Pvt. Ltd., Mumbai. During the course of my project I was always guided in the
right direction and this experience has helped me to grow more rational in my thinking and
approach.
I am extremely grateful to my guide Mr. sharad bhanushali, Cluster Head (Mumbai) - Square
Yards Consulting Pvt. Ltd. for taking me as a summer intern under her guidance and giving
me the opportunity to work on this project which helped me in integrating my theoretical
knowledge with the practical workings of a corporation and allowed me to experience and
learn from the challenges in an organization of this stature from a managerial perspective.
My special thanks to Mr. Sahil Shah, Vice President, for helping me throughout my study and
enlightening me with his deep knowledge. I am grateful to him for showing me the right
direction.
I am also grateful to the entire staff of Square Yards Consulting Pvt. Ltd. for their continuous
support.
I also sincerely thank my Faculty Mentor Prof. Seema Laddha for guiding me throughout the
project.

Vikas vijay desai

EXECUTIVE SUMMARY
The real estate sector in India assumed greater prominence with the liberalization of the
economy, as the consequent increase in business opportunities and labor migration led to
rising demand for commercial and housing space. The real estate sector in India is presently
worth USD15 billion and it is growing at a phenomenal rate of 30% per year. This sector is
the second largest employer in India, after the agricultural sector. Having attained maturity,
the real estate sector is attracting huge investments, especially (Foreign Direct Investment)
FDI. Today, real estate in India addresses the demand for built-up space, from a variety of
property segments such as offices, residential units, shopping malls, hospitality industry,
manufacturing sector and logistics parks, to name a few. The real estate sector is also active
in the establishment of SEZs and the building of townships; it is spreading to the smaller
cities and underpins their growth. Infrastructure developments closely parallel real estate
developments.
The Real Estate Channel Partners business development Project aims to improve the
efficiency and effectiveness of real estate sales systems in Square yards. The objective of this
project was to create brand awareness and sense of affiliation amongst the Estate agents with
the brand Square yards. Indian real estate depends mainly on channel partners for 70% of
their total sales. Channel partners are kept interested in this symbiotic association with
industry constant commission of 2% and added incentives. So this project was a part of
companys sales exercise, so the project dealt with enrolling estate agents as Square yards
Channel Partners. And based on these interactions to segregate them based on area, their
average ticket prices, micro markets, etc. So when the project is launched desired target
channel partners are kept ready well in advanced. In the end on internship tenure a window of
10 days was kept where direct sales to end user was desired.
The report presents the tasks completed during summer internship at Square yards which are
channel partners meetings, project launch, loyalty Program and real estate market learnings
in both residential as well as commercial segment. All these tasks have been completed
successfully and results were according to expectations. The report also consist brief
description of Square yards and summary about internship goals, activities, and
accomplishments.
One more objective of the project was to understand the requirement of the channel partners
their perception of various competitors. And also understand why they prefer some brands
over others.

index

Sr. No.

Chapters

Contents

1.

Chapter 1

Real estate sector in india

2.

Chapter 2

About square yard

3.

Chapter 3

Marketing strategies about square yard

4.

Chapter 4

role of channel partner

5.

Chapter 5

learning

Page No.

introduction
The Indian real estate sector is one of the most globally recognised sectors. In the
country, it is the second largest employer after agriculture and is slated to grow at 30
per cent over the next decade. It comprises four sub sectors - housing, retail,
hospitality, and commercial. The growth of this sector is well complemented by the
growth of the corporate environment and the demand for office space as well as
urban and semi-urban accommodations.
According to a study by ICRA, the construction industry ranks third among the 14
major sectors in terms of direct, indirect and induced effects in all sectors of the
economy.
It is also expected that this sector will incur more non-resident Indian (NRI)
investments in the near future, as a survey by an industry body has revealed a 35
per cent surge in the number of enquiries with property dealers. Bengaluru is
expected to be the most favoured property investment destination for NRIs, followed
by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

Market Size
The Indian real estate market size is expected to touch US$ 180 billion by 2020. The
housing sector alone contributes 5-6 per cent to the country's gross domestic
product (GDP). Also, in the period FY08-20, the market size of this sector is
expected to increase at a compound annual growth rate (CAGR) of 11.2 per cent.
Retail, hospitality and commercial real estate are also growing significantly, providing
the much-needed infrastructure for India's growing needs.
Real estate has emerged as the second most active sector, raising US$ 1.2 billion
from private equity (PE) investors in the last 10 months.
Foreign investors have bought tenanted office space worth over US$ 2 billion in India
in 2014, a four-fold rise compared to the previous year, in order to increase their
rent-yielding commercial assets in Asia's third largest economy.
According to a study by Knight Frank, Mumbai is the best city in India for commercial
real estate investment, with returns of 12-19 per cent likely in the next five years,
followed by Bengaluru and Delhi-National Capital Region (NCR). Also, Delhi-NCR
was the biggest office market in India with 110 million sq ft, out of which 88 million sq
ft were occupied. Sectors such as IT and ITeS, retail, consulting and e-commerce
have registered high demand for office space in recent times.
Delhis Central Business District (CBD) of Connaught Place has been ranked as the
sixth most expensive prime office market in the world with occupancy costs at US$
160 per sq ft per annum, according to a survey by CBRE.

Investments
The Indian real estate sector has witnessed high growth in recent times with the rise
in demand for office as well as residential spaces.
Blackstone Group Lp is all set to become the largest owner of commercial office real
estate in India after a three-year acquisition drive in which it spent US$ 900 million to
buy prime assets.
According to data released by Department of Industrial Policy and Promotion (DIPP),
the construction development sector in India has received foreign direct investment
(FDI) equity inflows to the tune of US$ 24,012.87 million in the period April 2000December 2014.
Some of the major investments in this sector are as follows:

Google Capital has invested in Bengaluru-based online property search

platform, [Link].
Omkar Realtors and Developers Pvt Ltd is in talks to raise Rs 400 crore (US$
66.68 million) from KKR India Asset Finance Pvt Ltd, the local arm of global
investor Kohlberg Kravis Roberts and Co LP (KKR).
Goldman Sachs Group bought shares worth Rs 255 crore (US$ 41.23 million)
in Vatika Hotels Pvt Ltd, a company owned by real estate and hospitality firm
Vatika Group.
SoftBank Internet and Media Inc will invest, along with Falcon Edge Capital
and others, US$ 90 million in Locon Solutions Pvt Ltd, which runs
[Link] - a realty website. The SoftBank Group will become the largest
investor in [Link] after this round of funding .
The Qatar Prince, Hamad bin Khalifa Al Thani, plans to invest Rs 1,000 billion
(US$ 16.17 billion) over the next five years in at least 10 smart cities of India.
He has already tied up with a Delhi-based businessman for taking the
investment forward through projects in real estate, sea ports and airports,
besides smart cities.
Real estate firm Supertech has planned to invest about Rs 2,000 crore (US$
323.49 million) in Gurgaon over the next few years by launching several
luxury and affordable projects.

Real estate sector

About The Company

Square Yards is the No.1 pan-India organized real estate

advisory for residential properties. Growing at a scorching pace, it has established presence in
20 cities and 5 countries across the globe within a short span of 18 months. Backed by the
competence and impeccable service quality of more than 600 employees across the globe,
Square Yards offers a host of cross-border real estate investment opportunities to investors
and home buyers.

With its excellent working relationships with more than 500 A grade developers in India, US,
UK, Australia, Singapore, Malaysia, Japan, Canada, Bulgaria, Mongolia and UAE, Square
Yards has already facilitated real estate transactions in excess of US$ 350 Million (within
this, US$ 300mn transaction value in India ranks Square Yards' execution capability better
than largest developers in India). To add, Square Yards enjoys a virtual monopoly in offering
real estate advisory services to the NRI/PIO diaspora.

With its recent pre-series A fund raiser of US$ 6 Million, Square Yards has now set its target
on acquiring a lion's share in the primary residential transactions market in India. It is rapidly
building a first of its kind Aggregator platform of real estate advisors in India backed by
robust technology and a user friendly e-commerce platform to facilitate online transactions. It
has ambition to achieve 15% market share in Indian primary residential market in couple of
years, and first leg of growth (becoming market leader in just few months) demonstrate
strong execution and management capabilities.

Led by accomplished professionals, ex bankers, and Ivy school alumni Square Yards firmly
stands by its ethos of ushering in unparalleled transparency into real estate transactions by
offering savvy insights backed by rigorous research and supported by the highest standards of
professionalism and service orientation. With benchmark standards set in post transaction

servicing, technology driven CRM, presence across the value chain from discovery to
transaction, Square Yards is trying to transform and organize the fragmented advisory space.
Talk to Square Yards about your real estate dreams, we promise to
deliver the best bang for your buck!

OUR GROUP COMPANIES

Square Capital is Indias first unbiased loan advisor for best deals in loans and unmatched
advisory services. The company with its expert loan counsellors and a structured CRM team
ensures end-to-end services to the clients.

BLING is the event management arm of the Square Group and specializes in niche & luxury
events with a special focus on real estate. BLING has delivered hugely successful HNI
focused events in Singapore, Hong Kong, Dubai, Abu Dhabi and London.

Square Connect is retail aggregation channel program for Real Estate brokers. Square
connect is expanding aggressively and it will create the largest distribution network of real
estate brokers and agents in India & overseas.

One of the fastest growing real estate e-commerce player with global brands such as Square
Yards, Square Capital & Bling Events under its umbrella. Square Global has offices in 5
countries including Hong Kong, Singapore, U.A.E, United Kingdom & India.

OUR BELIEFS
Vision & Mission
Square Yards aims to be a game changer in the Real Estate market by bringing transparency
into this highly opaque industry and educate investors with rich and indepth analysis of
market trends and investment opportunities.
We are always focusing on providing our valued clients with fair-unbiased advice and ethical
services.

Values & Ethics

For most property consultants, the relationship ends once the deal is done. We follow a client
centric approach, dedicatedly catering to their needs.

We hand hold them through every deal and transaction. For us a relationship continues even
after the deal is done.

IN NUMBERS
14 Cities
5 Countries
2500+ Transactions
Greater than million USD revenues per month
2500+ Satisfied Customers
600% Growth Projection
USD 350 Million+ worth Properties sold
Largest player in the Residential property market, India

AWARDS
Corporate Real Estate Marketing Company 2014

Real Estate Start Up Of The Year 2014

Realtor Of The Year 2014

Young Achiever Of The Year2014

SERVICES
We are the only organized real estate consultant in the country that offers a 360 degree
approach towards real estate investments.

Property Identification
Developer due diligence, Technical Research & Analysis

Transactional Support
Site visits, pricing / Inventory Negotiation, Distress Sales Support

Financial Support
Mortgage & Financial services, Administrative & Legal support

Product Portfolio
Residential: primary & resale, Commercial, Leasing, Land transaction, Global projects,
Affordable Housing

Portfolio Structuring & Management

Diversification across global & various segments, Resale, Repatriation of proceeds

Service for Life

Dedicated Relationship Manager

Why Choose Us
We are present in 5 countries and 14 cities in India. We are associated with more than 500
developers.

We take the customer through the entire lifecycle of property buying. Right from the
documentation process to renting out the property and helping with the exit strategies, we are
with you. Our Global Intelligence Cell (GIC) constantly endeavors to analyze latest trends,
market reports and investment insights in the global realty market to keep you well informed.
We help diversify your real estate portfolio around the globe and are pioneers in bringing
Global Properties with the best payout options to the Indian investor. Whether it is a motel
project in North Dakota, student accomodation in London, or a farmland in Senegal, we help
you invest your monies in the best option available globally.

Associated Developers

CAREERS
Square Yards is a labor of love and we plan to keep it that way till death do us part!
We love what we do, we love our customers, and we love our team. So come be a part
of the most successful love story ever!

Square Yards Ethos

INTEGRITY
Integrity is doing the right thing, even when no one is watching.
TRANSPARENCY
Be transparent. Be clear. Be happy
CLIENT CENTRIC FOCUS
As the clich goes, Customer is the King. Well, honestly he is and will remain so
forever and ever.
TEAM WORK
Team work results in success or disaster. We love success. We abhor disaster.
INNOVATIVENESS
Dare to think. Believe in it. Execute it

DYNAMIC
Life is dynamic. So be alive.

Marketing strategies of square yard

Square Yards offers end-to-end services which include finding the right
property for customers, offering professional advice on issues such as tax,
insurance, legal and various exit strategies

WHY SQUARE YARDS?

Diversified asset offerings- so bigger platter to choose from

Strong CRM and Research build out, helping clients throughout the asset
ownership

Strong on ground operational support- Due to our network of global

branches.

Professional advice like taxation, exit strategies, repatriation

Transparency moving to client mindset from a developer mindset- acting

on clients behalf

Strong market share - helps pooling of clients & word of mouth brand
building

HOW WE DO IT?
RESEARCH TEAM :- We originate quantitative property research information from
multiple credible sources, partnering with you to provide strategic investment
property advice, consultancy and direction regarding property. Our experts are
highly sought-after by both corporate and government bodies.
Our research team helps our customers to understand emerging trends and take
advantage of the cyclical and therefore, somewhat predictable nature of
real estate.
CRM SOLUTIONS :-To Provide the clients with hassle free post sales experience
and build long lasting relationships based on trust and value
With the aim to serve our clients better, a dedicated RM would be assigned to
each of the clients who would:

Help manage their real estate portfolio

Update them on upcoming demands and construction status

Appraise them on new launches and trending market prices

Help them on exit strategies

Our customers are the most important part of our business and we strive to work
diligently towards ensuring 100% customer satisfaction

Square Connect : Associate Program

Greetings from Square Yards!!!

We are proud to introduce the Square Connect Program ( Alone we can do so little;
Together we can do so much) wherein with the support of thousands of associates like
your good self that we aim to build Indias largest and most trusted Real Estate Advisory
Platform. Its an initiative designed to create, provide and help industry compatriots like you
with productivity enhancing tools to leverage SQUARE YARDS branding, distribution and
value chain strengths.
Our vision is to create a significant diversified and scalable global platform which provides
value to an extended base of customers locally and globally and thats the only reason Square
Yards continues to build Indias most trusted and biggest Real Estate Advisory Platform and
is committed to collaborative business relationship with our Associate Partners.
Its a Business Partnership program which gives an opportunity to earn more with ZERO
Investment. Along with this, Square Connect Program offers a host of advantages to
Associate Partners like-:

CRM: Client Relationship Management: World Class Relationship Management

support for your clients for all queries regarding asset purchase/sale.

Mortgage Advisory Team:-Helping your clients chose the right loan product; can
also act as additional revenue source for you.

Developer Relationship:-Enjoy working relationship with 450+ developers pan India

helping you in operations, collections etc.

Higher commission slabs:-Benefit financially from the relationships that Square

Yards enjoys and get the best commercial terms for your efforts.

Global Geographical Reach:-Get access to 5000+ under construction projects pan

India, across 20 cities and products from 15 countries including UK, USA, UAE,
Singapore.
Training:-Avail right and prompt training to get information on latest launches,
payment plans, exclusive products etc.

Technology:-Get technology access as an Associate to track client relationships,

billing status etc.

Branding association with Square Yards:-Utilize the chance to get associated with
and leverage Indias biggest real estate advisory distribution platform.

Rewards and Recognitions:-Get a chance to get recognized in the fraternity and win
added monetary rewards over and above brokerage slabs.

ZERO COST: All the above benefits are available to you totally FREE!

Since the inception of this program, we have already empanelled with 2000+ Channel
Partners Pan India. The only Condition is, this program works only when we work
TOGETHER. So, let's join hands and build a strong NETWORK as the
POSSIBILITIES are endless.

Square Connect Association Agreement

Role of channel partner in square yard

What are Channel Partners?
Essentially CPs are the agencies that take the responsibility to sell-off whole or
part of the realty projects in a pre-agreed upon duration & take their
commission/fees in doing so. In this process, they underwrite the properties which
are to be sold by them. More on this will get clear in the following discussions.

How are Channel Partners different from Brokers?

Although doing the same work, there is a huge difference between Brokers and
Channel Partners.

A Broker acts as a liaison between the Seller & Buyer and in this process he takes
his high commission.

A Channel Partner on the other end underwrites the property to be sold for a
particular duration by paying the square yard some percentage more than normally
developer gives to cps. The CP is then free to use any means of promotion & sale
including sub-broking, conducting events, etc. to sell the which property square
yard get on sole selling. Once the property is sold in the pre-decided duration, the
CP gets a handsome cut from its sale, much larger than a brokers, and gets his
underwriting amount back from the square yard
If in case a CP fails to sell the sole selling properties in the specified time
duration, he is not liable to pay to the square yardr, an amount that is prespecified in the agreement between him and square yard.

Why do square yard Channel Partners?

With the evolution of new ways & processes in Real Estate, square yard have
quickly adopted the concept of Channel Partners. We were perplexed at first about
the acceptance of Channel Partners in this sector but when we looked at its
profitability by putting ourselves in them with square yard, we got all our answers.

Following are some of the benefits that a square yard enjoys in partnering with a
Channel Partner:

Immediate funding of Operational Costs: The square yard uses the

underwriting amount to fund his immediate cash requirements. This is similar to
funding by booking amount, the difference being that the percentage of cash is
relatively small.

Guaranteed sell of the property: By partnering with the CPs, the Builder
ensures that his property will be sold. He no longer has to worry about the
marketing and promotional activities. Even if the CP is unable to sell the property
in the specified time, the Builder easily gets the interest amount by penalizing the
CP.

Better than Broking: Using CPs is better than relying on the brokers. This is
because of the fact that brokers have no liability to sell the property, whereas CPs
have!

Free Promotion: Suppose that a CP has underwritten 50 units out of total

100 units constructed by the Builder. Now, to sell those 50 units, the CP will carry
on promotional activities by conducting events, advertising etc. But in this whole
process, the Builder is getting benefit of free publicity of remaining 50 units as
they fall under the name of same project.

These and several other benefits have made Channel Partners a hot topic in
emerging markets. Also, it is noteworthy that this trend is picking up pace quickly
in Tier 2 cities. RealT Horizon is glad that our vision of development in the Tier 2/3
cities is getting much air

Learning
The real estate sector is a critical sector of our economy. It has a huge multiplier effect on the
economy and therefore, is a big driver of economic growth. It is the second largest
employment generating sector after agriculture. Growing at a rate of about 20% per annum
and this sector has been contributing about 5 - 6% to Indias GDP. Not only does it generate a
high level of direct employment, but it also stimulates the demand in over 250 ancillary
industries such as cement, steel, paint, brick, building materials, consumer durables and so on
In the Financial Years 2007-08, 2008-09 and 2009-10, the housing and real estate sector
attracted FDIs of 8.9%, 10.3% and 11% respectively, of the total FDI in India. However, the
financial year 2010-11 saw a mere 6% FDI in this sector
It provided the intern complete understanding of the entire life cycle of sales in real estate
industry. It also helped an intern in understanding the knowhow of real estate sector and how
marketing and sales is done for this particular field.
Marketing in real estate sector is different from other products, as in most of the cases live
product is not available for the customer to feel and understand it. Convincing customer to
buy a particular property depends on many factors like brand image of builder, channel
partner network of builder and many other factors.
This study helped intern in finding the gaps in marketing strategy of the Square yards Limited
& also to understand the area of improvements in its complete process.
Intern also had a chance to know the actual importance of channel partner in Real Estate, as it
is believed that they contribute towards more than 70% of total sales of the projects.
As companys 60% sales used to come through Channel partners i.e. Real estate agents, it
was important for the company to know about the loyalty of the channel partners with whom
they are connected and depended. Once we calculate the needed result through the
information obtained we can categorize different real estate brokers and thus focus on the
segments needed. This would save a lot of time and money for the company. We can also
create a channel partner management strategy for the company and thus can keep a lot of
channel partners in the loop and grow more in size and business
Regular interaction of Square yards sales team with channel partners is missing. It has
resulted in weak relationships between channel partners and organization. Channel partners
are not given enough importance in sales which has resulted in slow growth of the Company,
as aggressive sales requires huge channel partner network, which is absent.

The company is into sole selling of other builders and thus work on newer and upcoming
projects, but they lack in other fields such as resale of the product. And company deals in
high end products with a premium price which common people think twice before opting
for.
The company is into selling products of other builders and developers and which results into
low sales than as compared to other developers as they use the same concept for their own
projects.
This project also helps in understanding customer behavior, with the some of the following
factors such as
1) Location of project
2) Brand perception by Customer
3) Brand perception by channel partner
4) Price of project by developer,
5) Vastu integrated in flats
6) Profile of people living in the property
7) Proximity to important places (such as station, airport, beach, relatives, office etc.)
8) Amenities (such gym, swimming pool etc.) that contribute towards buying a
property and closure of a deal.
9) Convincing power of channel partner
10) Importance of show flat
11) Status of project(ongoing/complete/incomplete)
12) Lock in period of property
The intern had a huge scope of learning the core marketing strategy being
implemented by the company to improve its channel distribution and customer base to
improve its sales.