How to launch a new real estate project in India. The checklist

Every week, we at Indian Real Estate for Dummies do a review of the Indian real estate related keywords that are being searched on the internet. We found out that a large number of folks were searching for 'How to launch a new real estate project'. In fact, we got about 5 hits last week from those keywords, though we did not have an article specific to that search. So we decided to compile one. :)

Here is a checklist we put together which covers most aspects of a new project launch. Some are standard points while a few are points we have learnt from experiences from actual project launches. Hope this helps you!

Launching a new real estate project in India? The Indian Real Estate for Dummies Checklist:

Site:

1) Secure the site. Have a boundary wall constructed, clearly defining your project site. Clean the insides of the site of debris, old ramshackle structures and other hazards. Have a warmly painted gate at the entry point with your branding on it. It shows that you are serious as a builder and boosts customer confidence.

2) Direction signs. Install direction markers to your site from the nearest famous landmark. Customers feel good when they do not have to stop to ask for directions continuously. So many project launches have lower footfalls because of a confusion over the directions. Overdo the direction signs if you must. But ensure that your customer reaches the site easily. Also, directional signage, if properly designed also double up as branding for you!

3) A scale model of the project. Have a scale model made at the project site to give the buyer a real feel of how the site will look and feel when its finished and ready for possession. If you do not have a scale model, ensure that you have a large, neatly printed rendered plan of the entire project at site. It will help your sales dudes close sales faster! A buyer will make his impression based on his first visit to your project site. You must do everything possible to impress him.

4) Sort out local issues. You must have a good relationship with key people in the locality where you are building your new project. Locals must be upbeat about your project. Note that a small demonstration against or a negative feeling about your proposed project on the day of the launch can completely jeopardize sales and the entire reputation of the project! Postpone your launch till you have befriended the locality and they feel right about your project.

5) Basic on site hospitality. Make your customer comfortable. If you are launching a project in summer, make sure that the site office is air conditioned, there are comfortable seating and discussion areas with services like drinking water, tea and/ or coffee.

6) Time the site visits right. We are all plagued with India's infrastructure problems. Water logging could be a big problem around the site. Plan your launch at a time when the weather forecast is good. A water snare could er, water down all the project USPs and thus, the sales.

7) Have a friendly on site team which can answer customer queries, make a note of further steps and get commitments from your prospective buyers. Customers do not come to sites often. When they do, the opportunity should be seized.

Documents and Approvals:

1) If possible (we say this because a lot of times, various reasons do not make it possible) ensure that you have all the necessary approvals to start the project before you launch it in the market. In case you do not, resort to a soft launch among your regular investors and trusted brokers networks. Once an end user gives out her/ his booking cheque to you, lack of proper approvals from your end could become a real pain!

2) Have the final site and floor plans ready. Changes in apartment plans and areas after the launch could result in immense customer dissatisfaction and cancellations. That is another reason why approvals are so important before a project launch. The plans and areas get finalized by default. Double check the areas. The architect's plans will in all probability have the built up areas. Factor in your super built percentage, round off the areas and list the super built up areas flatwise.

3) Create the availability chart of all the units on sale. This should be ready and double checked before you get your first sale. Have one specific person, preferably at your head quarters to manage the availability. You do not want want to sell one apartment to two customers, right?

4) Have the project brochure and/ or flyer(a much shorter version of the brochure) printed, packaged and ready. Remember to cover every aspect of your project in these communications. Tell the customer everything that you are giving. Even if you think everyone else takes these basic things for granted, list them down.

5) Have a neatly printed application form with the project logo and the builder logo ready. Make sure that this form can capture all the necessary necessary information that you will need to build the buyer's documents in the future. Have a small section in the form which has the very basic terms and conditions which will be in effect till the formal allotment letter or the agreement for sale is signed covering all the aspects between the builder and the buyer.

6) Keep working on the bank approvals. A bank logo in your project launch communication gives the buyer a lot of confidence. It tells the buyer that you have all documents and approvals in place.

7) Have the agreement for sale and/ or the allotment letter format ready to be shown to buyers who book with you. Ditto a set of the legal documents.

8) If you are using an ERP driven system, ensure that the new service taxes are factored in and you are ready to generate money receipts. If you are using a broker network to get you sales, remember that money receipts are very important. The brokers need to give these out post picking up booking cheques from the buyers. Buyers are very particular about formal paperwork especially while booking through brokers.

9) Communicate clearly to your buyers and channel partners about the time when construction will commence on the project and the expected date of handover.

10) Draw out the construction linked payment schedule and try and put a tentative date on each of these installments. It prepares the customer to keep the funds ready. It reduces your efforts on optimizing your cash flows.

Branding, communication and launch event:

This is the PR bit and is a highly local phenomenon. A mix of print, OOH, radio and TV spots could be used to communicate the launch, depending on the size and value of the project. Remember to use a professional agency who have figures handy and can quantify the results of such immense launch expenses.

A good idea is to phase out the launch expenses. You could have a teaser campaign, a main launch campaign and other smaller follow up campaigns. Always have a budget for contingencies. A huge launch budget does not guarantee sales. There may be reasons due to which sales can slow down and you may have to sustain your campaign or re- position the project. Spending all your money in a short burst of time to create a carpet bombing effect is an incorrect way to launch any real estate project. But, there are no fixed rules for this part. So we leave it to you to customize this bit.

These are the basic points that comprise the new real estate project launch checklist. As we come across the need for more specific discussions, we will bring them up on this stupid website. Do leave your feedback in the comments box. We would be happy to help.