A truly professional firm concerns itself with building a reputable brand that wields authority, respect and trust on the market
 Today’s property market scenario is not amenable to companies that do not present a professional image. Clients at present are far more aware than ever before, and have become savvy about the difference between specialists and amateurs. Keeping this in mind, it is important to know what makes a real estate services firm truly professional in this new environment.The inherent nature of the real estate business makes it very distinct from other business lines. Since it is difficult for an average person to successfully make the transition into the real estate business, a significant challenge for a professional property services firmis sourcing and training the right professionals.
Another challenge is developing a business plan or strategy that factors in the needs of the market. In today’s scenario, it is surprising that there is still so much emphasis on brokerage, when in fact the required services bouquet is much larger than that.
Not just services
A truly professional real estate company needs to chart all aspects of the real estate market and have an entire array of service offerings in place. Considering the needs of the market today, a successful real estate services firms would offer every conceivable service including research, consultancy, transactions, project and development services, integrated facility management, property management, capital markets, residential, hotels and retail advisory.
However, offering such services is not sufficient because of the high competitiveness prevalent at present. The company should have operatives that have considerable expertise and experience in each segment. I do not know how many of you will see it my way, but I have always believed that the most successful businessmen surround themselves with people who are smarter than themselves. This is holds true in real estate too, where it takes large teams of very talented people to find opportunities, zero in on them, groom clients and finally close transactions. If you do not have the right people in sufficient numbers and rely solely on a small core group of experts, your business will crumble.
In India, the value a property services company adds to the overall market depends entirely on its local expertise, experience in matching Indian property to global requirements, its bouquet of services, the differentiators it introduces into these and whether or not it adheres to international best practices in property business.
A professional realty firm sets clear, concise, measurable and achievable goals. It knows its market, the dynamics that drive it and the people who run and patronise it. Its business verticals are clearly defined and impeccably staffed, with sufficiently autonomous departments that are nevertheless centrally controlled. Being a ‘Jack of all trades and master of none’ only works well for smaller outfits that focus on making quick deals. A truly professional firm concerns itself with building a reputable brand that wields authority, respect and trust on the market.
Professionalism: The concept
When we talk of professionalising a property-related services firm, we must obviously touch on the true definition of ‘professionalism’, which in any business line is primarily defined by two aspects, transparency and ethics. India’s real estate market is largely fragmented and it is a herculean to organise it. By adhering to international best practices, a property firm can attract and retain corporate clients by offering the vital aspect of transparency in all its dealings and processes.
Likewise, high ethical standards are indispensable to a professional real estate firm. To illustrate the challenges we face on this front, I would like to quote from the Management Guide for Real Estate Associations, which is a publication of the International Real Property Foundation, “Ethical perceptions and international business are highly influenced by cultural differences. Because of cultural and ethical relativism, real estate business that is conducted across national boundaries may discover ethical conflicts. Major ethical issues that complicate international business activities include sexual and racial discrimination, price discrimination, bribery, harmful products, telecommunications - specifically, enforcement of country-specific laws, copyrights and questionable financial activities.”
To put it in a nutshell - in a professional real estate firm, things not only look right, they ARE right... and vice versa. Nothing less will do if a firm wants to set itself above and apart from others on the Indian real estate landscape.
It is evident that adhering to such parameters is not as easy as reading about them. In real estate, it is always tempting to find the shortest route to profits. This is a path that usually involves compromises. One tends to cut corners on hiring the best people, following professional ethics, keeping clients happy and staying updated about the latest trends. Firms that choose to take this path will not make it very far, and will possibly never transcend the amateur level. On the other hand, firms choosing the harder, thornier path of never being satisfied with mediocrity and always striving for excellence in all aspects of their business dealings would develop into true professionals.
A study by Anuj Puri, chairman & country head of global advisory firm Jones Lang LaSalle Meghraj |
