Impact of Marketing Strategies on the Growth of the Real Estate Industry in India

This report is undertaken to identify how specific marketing strategies impact the Indian real estate. For this purpose, the research is investigated to evaluate the current marketing practices and their impact on the overall growth of the highly competitive real estate industry in India.

Chapter 2: Literature Review

The literature is going include the analysis of articles to identify the major problems and issues and then it will evaluate the marketing strategies used in the real estate industry along with their contribution to its growth. In the context of major problems and issues being faced by the real estate industry in India that is hindering the growth of the industry include loss of jobs of individuals in other sectors, economic slowdown, high-interest rate and others. It is been found that people in India who are earning 2-8 million per annum are the key investors in the real estate industry and most of the people of such earnings are recruited in the IT industry and others companies of different sectors. However, reports have surfaced that there is high risk of job security raised in different sector which is rendering many people unemployed. This has negatively affected the growth of the real estate industry as the key investors facing unemployment are avoiding spending to buy properties that have resulted the industry face lack of investor and consumers of their services and products (Singh, 2016; Gupta et al. 2017; Samuel and Saxena, 2017).

After the recession hit India in 2008, different changes were experienced such as stock market crash, drying up of funds in banking institution, currency crisis and others (Chaturvedi and Sharma, 2012). This has lead the higher income group to develop urge to avoid wasting their investment in real estate to remain economically stabilised and have liquid money in hand to control their expenses. It results in the demand for real estate in India to slow down making the developers struggle to get tenants and buyers for their overpriced properties (Shah, 2018; Sharma, 2018). Thus, this has affected to lower the growth of the real estate industry in India. The high-interest rate charged by the Indian banks is seen to have acted as problem for consumers to buy properties (Ram and Needham, 2016; Pandit, 2015). Since higher the interest rate, the more investors have to pay to avail a property which is causing hindrance for the consumers in India to invest in real estate in turn negatively affecting the growth of the industry. The information and these sources indicated to develop the key theme that is the present problems being faced in the real estate industry in the India. The theme is relevant to the topic as it acts as a basis to identify later to what extent the present market strategies in real estate industry in India is able to resolve the issues thus helping to determine the impact of the strategies in the industry.

In relation to the problem being experienced in the real estate industry in India, it is seen that developers are directed to arrange Affordable Housing for all with all the basic amenities required for living (Gopalan and Venkataraman, 2015; Ram and Needham, 2016). This has been effective to boost the growth of the real estate in the coming years by mitigating the issue of finance investment faced by the public due to recession. The developers in the real estate industry in India are seen to be letting buyers realise their power of collective bargaining. This is done by providing the property deals for the buyers by the organisations in a single website where the consumers can come together to chose for best deals through collective marketing to buy homes at lower rates than expected (Miyamura, 2016). These strategies are seen to be effective in creating growth of the industry as the buyers even due to financial constraints has been able to get homes at affordable prices. However, no strategies are still been developed by the real estate organisation to cope with the unemployment issues that is affecting investment and growth of their industry. Thus, the studies of Ariztía (2014), Liu et al, (2016); Jones and Livingstone (2015); Gibler and Lindholm (2012); Khanna et al, (2013); Marmolejo-Duarte and Ruiz-Lineros (2013) are included and reviewed to identify other major marketing strategies and their contribution in the growth of the firms in real estate industry. These literatures are effective to identify the digital, traditional and other marketing strategies and how effective these are to resolve issues and problems in the industry that influence the consumers and improve the overall competitiveness of the organisations. These sources indicated to develop the key theme that is marketing strategies being used in real estate industry in India. The theme is relevant to the topic as is helped to determine which marketing strategies are to be focussed on to identify the impact of them in real estate industry in India.

The chapter is also effective to reflect on the major literature that depicts the factors that influence the growth of real estate industry and also the relationship between marketing strategies and growth of the firms. In this context, the literature of Shirley (2017); Liao et al, (2015); Flint-Hartle and De Bruin (2011); Fuerst and McAllister, (2011); Llinares and Page (2011) is effective to identify the number of factors such as liquidity, capital availability, increasing cost, competition etc. as the major factors that affect the overall growth of the firms in real estate industry. These sources led to develop the theme that is factors concerning the real estate industry in India. This is relevant to this thesis as it is going to help in showing how the factors which are interrelated with the marketing strategies of real estate industry in India in controlling their impact in the industry. Overall, the literature review is effective to identify the major factors, problems and existing marketing strategies that influence the demand and growth of the real estate industry from different perspectives. However, not much about the impact of marketing strategies to boost growth is been found to be discussed. Further, the existing literature did not highlight all market strategies that could mitigate the raised problem that is affecting the industry growth in India. Thus, the next sections are developed to understand in details the impact of existing and future marketing strategies on the real estate growth in India and what are the strategies that are involved in resolving factors and issues which are hindering growth of the real estate industry.

References

• Singh, R.A.K.H.I., 2016. Disinvestment of Indian Public Sector Enterprises: A Global Perspective. International Journal of Management, Information Technology and Engineering, 4(2), pp.81-94.
• Gupta, A., Sawhney, A., Bajaj, D. and Agarwal, S., 2017. Significance of real estate fund management in India. Journal of Real Estate Literature, 25(1), pp.141-168.
• Samuel, Y. and Saxena, A.K., 2017. A Study on Demonetisation and its Impact on Indian Economy. International Journal of Innovative Research and Advanced Studies (IJIRAS), 4(2), pp.287-290.
• Chaturvedi, D.D. and Sharma, M., 2012. ECONOMIC RECESSION AND INDIAN REAL ESTATE-HOPES AND IMPLICATIONS. READINGS BOOK, p.79.
• Shah, A.S., 2018. Pre and Post Effect of Recession on the Financial Performance of selected Indian Companies of Real Estate. Asian Journal of Research in Banking and Finance, 8(4), pp.71-79.
• Sharma, R.K., 2018. Factors affecting financial leveraging for BSE listed real estate development companies in India. Journal of Financial Management of Property and Construction, 23(3), pp.274-294.
• Ram, P. and Needham, B., 2016. The provision of affordable housing in India: Are commercial developers interested?. Habitat International, 55, pp.100-108.
• Pandit, B.L., 2015. The global financial crisis and the Indian economy (Vol. 144). New Delhi: Springer India.
• Gopalan, K. and Venkataraman, M., 2015. Affordable housing: Policy and practice in India. IIMB Management Review, 27(2), pp.129-140.
• Miyamura, S., 2016. Rethinking labour market institutions in Indian industry: forms, functions and socio-historical contexts. The Journal of Peasant Studies, 43(6), pp.1262-1284.