The Ultimate Guide to Implementing ERP in Real Estate
One of the industries with the greatest international recognition is real estate. The sub-sectors that make up this industry are housing, retail, hospitality, and commercial. The expansion of the corporate environment, the need for office space, and the need for urban and semi-urban housing all nicely compliment the rise of this industry. Regarding direct, indirect, and induced effects across all economic sectors, the construction industry comes in third place out of the 14 key industries.
The real estate market is expected to increase from Rs. 12,000 crore (US$ 1.72 billion) in 2019 to Rs. 65,000 crore (US$ 9.30 billion) by 2040. India’s real estate market is predicted to grow from US$ 200 billion in 2021 to US$ 1 trillion by 2030, and by 2025, it would account for 13% of the nation’s GDP.
Types of Real Estate
What Roles Do Different Real Estate Industry Functions Play?
Development
The process of developing real estate includes buying raw property, rezoning it, building it, renovating it, and then selling or leasing the completed asset to end users.Developers profit from the risk of funding a project and from increasing value to the land through the construction of structures or renovations, rezoning, etc. Development companies produce fresh inventory or a new product, which is referred to as the “primary market.”
Marketing and Sales
Sales and marketing companies collaborate with developers to market the structures and apartments they design. These companies create all marketing collateral and use their sales representatives to sell the completed unit inventory, earning a commission in the process. These businesses usually concentrate on new units.
Brokerage
A company that employs a group of real estate agents, or realtors, to assist in mediating a transaction between buyers and sellers of real estate is known as a real estate brokerage. It is their responsibility to represent both parties and assist them in obtaining the best terms for a purchase or sale.
Real Estate Administration
Property managers assist owners of real estate by leasing out the apartments in their structures. Rent collection, apartment showings, repairing issues, making repairs, and tenant management are all part of their duties. They charge property owners an amount, usually a portion of the rent.
Mortgages for Real Estate
Since almost all properties and projects require leverage, or debt, to finance their operations, lenders play a significant role in the industry. Banks, credit unions, private lenders, and governmental organizations are examples of lenders.
Expert Services
A wide range of real estate experts are employed in the sector and contribute to its smooth operation. Aside from the ones mentioned above, the professions with the highest frequency of encounters are accountants, attorneys, stagers, interior designers, general contractors, laborers in construction, and artisans.
What are the challenges faced by the Real Estate Sector?
What Advantages Does ERP Offer the Real Estate Sector?
You shouldn’t overlook these few advantages of ERP for your real estate company.
Task Automation
ERP software can increase staff efficiency inside an organization by automating conventional business procedures. For example, the process becomes less productive overall if the marketing department has to wait for the sales department’s customer data before implementing new marketing techniques.
CRM
An organization’s performance is largely dependent on its sales and marketing departments. Customer expectations can be met and a devoted customer base can be developed via the application of efficient sales and marketing techniques.
Real estate ERP software comes with a CRM that helps sales and marketing teams track and save all of the information about possible clients in real time.
Any real estate or construction company wants to satisfy clients by meeting deadlines and providing high-quality work. Sales and marketing executives could find it challenging to track client information and put efficient marketing and sales strategies into action if they don’t take advantage of the ERP software’s advantages.
Elevated ROI (Return on Investment)
A strong return on investment (ROI) in terms of both measurable and intangible benefits is required when investing in new software such as ERP. It is recommended to wait two to three years following software integration before observing a significant rise in return on investment.
The following expenses may be incurred while implementing an ERP system: software purchase price, software update cost, consulting fee, initial implementation cost, and internal staff investment.
Following the installation of the ERP software, a few observable advantages are reduced material costs, greater inventory turns or billable hours, and a reduction in overall operating costs.
Strategic planning, higher productivity, and better employee retention are a few examples of intangible advantages.
ROI on the ERP software can be calculated using the below formula:
ROI =
[(Tangible benefits + Intangible benefits)-Cost of investment]
———————————————-
(cost of investment)
Pre-Sales and Marketing Management
The system comes with an easy-to-use tool that makes managing marketing campaigns easier. It serves as a reminder to follow up with your intended audience in order to increase leads and customer acquisition. Customized SMS and email marketing are now simple to handle. Your marketing staff is capable of handling their duties without feeling pressured.
ERP system for visitor control
Every entry and exit point has systematic records kept by the system. This system facilitates the electronic documentation of a wide range of business activities conducted by your small or large corporation.
Reservation Administration
You can manage and keep track of all of your project bookings and sales activity with the use of the ERP system. No matter what kind of project it is—residential, commercial, villa, etc.—you can simply track them down on your system.
Connect ERP with WhatsApp API
Through WhatsApp, users can communicate with potential customers who have come to view the sample apartments. ERP can be used to handle WhatsApp campaigns that entice users with offers, additional schemes for them. By doing this, the client may ensure that their relationship with the builders is solid.
Global Real Estate Industry Trends
As a realtor, you need to be aware of the following trends:
Company Website
Putting a real estate business online is by far the most common method of digitizing it. According to Forbes, internet websites are consumers’ first port of call when looking for information or doing house searches.
Popular social media sites like Facebook and Instagram are also used by people. The National Association of Realtors is experimenting with mobile devices for various purposes, such as communicating with their clients, in addition to utilizing web information services.
Reputable real estate websites are capable of providing far more than just one agent. Customers may find the greatest residential and commercial properties for sale or rent, both domestically and internationally, with the web services listed below.
Home Searching Goes Online
The epidemic hastened the digitization of every industry. The property market is no different. Some purchasers bought their homes in 2020 without ever setting foot inside them because of the pandemic and the competitive real estate market.
Thanks to virtual capabilities, many people were able to virtually tour homes, including:
- 3D tours and drone footage
- Online staging
Digital Reality
Superior images and 360-degree films will not suffice for modern Millennials. The modern world’s amenities are second nature to the younger generation.
For this reason, going forward, they will only use the most recent features and not the outmoded ones. Customers may explore the property with ease thanks to a terrific millennial-like feature called a 3D virtual tour.
Mobile Applications
The property websites must be mobile-friendly first and foremost. Google declared that it would begin indexing and analyzing your website’s mobile version first. Thus, the heyday of mobile app development is here.
Finally, you should decide whether to create a mobile app or a website based on your target demographic. You can accomplish two goals at once with the use of this data. In previous years, a lot of real estate firms released their mobile apps in addition to their websites.
That is the ideal way for consumers to leverage digital technologies for their real estate requirements.
Automated Advertising
Software systems may now automatically develop ad campaigns for new listings. They can also incorporate real-time data like views, clicks, and demographics, and show advertisements to the relevant audiences.
Which homes are best for sale or rental can be determined by real estate brokers. As a result, they focus their attention on the things that will yield the most profits.
The next obvious step would be to implement ERP software into your real estate and construction company now that you are aware of its significance and advantages. Jupical’s ERP software is the most suitable option for your company. It supports CRM, HR procedures, and accounting.