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Impact of IT Industry Slowdown on Real Estate Industry : A viewpoint

Let us see what's going on. US economy is under the sentiment of fiscal cliff which may result in slowdown of its economy. Europe is struggling to stay above the water. After PIGS (Portugal, Ireland, Greece and Spain) bad news now France and Italy have fundamental issues that would take time to fix. Unemployment across the globe is driving anti-outsourcing sentiments both in political and business circles. This situation would drive uncertainity and unpredictability of performance from Indian IT industry. The result of that we are already seeing in salary freezes, lower fresher intake. This would mean the cash-flow generated by IT employees for real-estate industry is certainly going to come down and it would pressure on real-estate demand. If interest rates goes super low level (7%-8%) of 2004, that may help builder community but that's unlikely.

The questions are:

What's the impact on builders? - Obviously it would be harder to sell. There would be increased pressure on pricing and cash flow. The high networth investor community from IT industry is already sitting on inventory and given current high prices is not willing to invest in new projects. This would further add to the pressure as capacity to hold the inventory goes down.

What should builders do in this situation? - The answer is "change"!! With the demand situation changing, the builders perspective need to change towards higher Customer Service and Increasing Transparency to differentiate. Along with this managing the cost of Sales and Office operations. It is estimated that 30-40% of less sales and office operations staff can deliver the same output as earlier. But how? Our clients have use homebuy360 effectively to make sales more accountable and automate office operations and on average saved Rs 15-20 Lakhs per year. Secondly builders should really evaluate the value from their online search portal marketing investments. Is that really providing the real leads? Instead, look to experiment with Referral Marketing. This is one feature that we are working to introduce in next 3 months.

Challenging time bring opportunity for smart organizations. Homebuy360 team is committed to build your organization smart

CII & Grant Thornton Report : Emerging Trends in Real Estate

If you haven't seen it yet, you should get a copy of the report by CII from http://www.grantthornton.in/assets/Emerging_Trends_in_Real_Estate_Sector-GrantThornton_CII_Report_2012.pdf It talks a perspective on future cities, regulatory environment, long-term sustainability of real-estate companies, technology as a game changer and how green practices can help reduce cost and leave this world a better place for our kids.

Most notably and relating to homebuy360.com vision is the piece of technology as a game changer. The report highlights that the use of technology can help builders differentiate in the market place, increase customer satisfaction and reduce cost significantly. Those builders who start investing in this area would come out winners in long-term.

We have noticed the interest from builders in last 6-9 months on using technology has gone up significantly. As prices have peaked and customers are becoming more demanding with tightening regulatory environment, builders are looking to ways to differentiate and manage information better. Employee knowledge and productivity remains an issue in the industry. Technology can solve these issues. And this is the mission and passion of homebuy360 team.

By the way, the CII and Grant Thornton report does mention about homebuy360 (page 46) and how this technology is impacting builders. It certainly made team homebuy360 feel proud!! Our sincere thanks to CII and Grant Thornton team!!

Choosing an application for real estate operations : Homebuy360 vs Non Cloud applications

There is often a fear in our minds of there being a huge effort ,cost and change required to bring in technology to optimize our operations. While this was true to a certain extent a decade or so ago, recent innovations have drastically brought down the effort and time required to adapt technology that enables you to integrate and optimize all the different functions of your operations from sales to marketing and accounting etc. Lets take a look below at how the new generation applications like Homebuy360 are making life easier for real estate developers compared to the old non-cloud based technology applications.

Non Cloud Application

Homebuy360

In a non cloud application total cost of ownership has 3 components: Licence cost + implementation cost + support cost. The implementation cost can be huge depending on the hardware and training required

Homebuy360 involved no hardware cost and minimal training to get you started hence no training cost

Non Cloud applications take more time to implement and migrate your existing data to

Homebuy360 allows you to import your existing data ,set up the project and get live in less than 2 weeks.

New features released available on request and upgrade cost

All new features released are automatically available to you at no upgradation cost . And we do release features every few weeks based on market intelligence gathered

Difficult to maintain and support . Overhead of maintaing IT staff leads to many of the customers abandoning the software after purchase

Homebuy360 doesn't require any infrastructure investment and maintenance from your end . You can just go ahead and use it without any other worry thus also availaing peace of mind. The dedicated customer support is always there to assist you with usage



A trial for you costs no charge and reveals how the powerful features can really impact your operations making life easier for the employees and delighting the buyers. Ask for a free trial at www.homebuy360.com or call us at the below numbers

Bangalore/Chennai : 9632514404
Bombay/Pune :
9920066499
Hyderabad : 9177841287