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Opinion and Only Opinion

Wednesday, October 30, 2013

Branding and Real Estate

A brand inspires lot of trust.  Real estate is definitely not the place to talk about branding because of the dubious mix of unprofessionalism (cheating), type of people in the business and general lack of awareness of the technical challenges in the industry.  Most of the real estate operators are financiers with no technical knowhow of the industry what so ever.

But, brands like My Home, Aparna (major builders) and Alekhya (specializes in small apartments but positioned as super premium) have built trust and loyalty with their patrons. And, are seeing the fruits of their hardwork. In a sluggish market like Hyderabad, they have been working extra hard and in the process have put in place the basic building blocks of great industry players.

At the national levels, marquee corporate brands like Godrej, Mahindra and Tata have brought a breath of fresh air to the industry.  People are increasingly depending on these brands (Chennai and Bangalore markets, that I am aware of) to avoid the usual heartburn associated with real estate deals. And, that is translating into pricing that is 6-8% above the next door projects' pricing.  And, I am coming across buyers who passionately argue that the premium is every bit justified. 

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