Dr. Mohit Ramsinghani - Chief of Sales - Runwal Group, explains "Planning & Execution for a new launch - Residential Project "

New Delhi (India), February 28: The momentum of Residential real estate sales continues making this January 2023 the best January after January 2021. In the current scenario, despite rate hikes, no stamp duty waiver and increasing price points, the consumer sentiment continues to be positive, keeping robust demand.

When a new project is acquired & launched, there are multiple milestones to be covered & at every stage, and specific points need to be managed very well. In this article, we will discuss the stages involved & specifics to be looked upon:

Acquisition of a Project – The acquisition of a project is the most critical part, as this is linked to the overall profitability of the asset. The location needs to be evaluated well, as this will decide the velocity of the sale, the acquisition price needs to be calculated, and one needs to keep in mind the acquisition price, premiums to be paid, construction cost, land parcel layout & the square feet that can be built. The selling price achievable on the launch of the project should be compared with the competition as one needs to achieve more money after all the costs incurred. It is important to look at the cash flow projection as interest cost will play a very imperative role in the overall profitability of the project. This is how one can decide on if to acquire & at what price.

Design & Planning – This is a very important step for the success of any new product launch. India is a land of traditional values & beliefs, and a consumer looks at factors like vastu, layout & directions before getting into a home to live. Design & Planning needs to be done well for the product to be customer friendly & saleable. The planning should be done to utilize the FSI in the best possible manner and keeping in mind the product being the best in size & shape. Market absorption & velocity are to be checked to decide on the inventory, like 1 bed or 2 & 3 beds. This stage decides the next stage, the sales pitch & theme of the project.

Sales & Marketing launch & Planning – This is the most critical stage as now you get paid for all the hard work done; hard work, though, continues. Sales planning needs to be done with a detailed competition analysis, pricing, payment schedule, go-to-market pricing, and channel partner incentive ladders need to be evaluated well to look more attractive than the competition. Site experience will play a very important role; show flat, sales experience centre, project walkthroughs, and scale models make the product very enticing to the customer. The marketing campaign must be planned according to the micro markets from where the target audience is expected. Digital strategy, hoardings, radio, and ATL activations are to be planned with maximum reach & visibility. Flexi payment plans & attractive pricing create the velocity which is required for a new project launch. A massive channel partners meeting impacts the market, making the product launch successful.