The Real Estate Sector in India has been associated with various construction project types which may be best classified by the use for which they are designed. Therefore these companies are associated with construction of Residential Housing, Commercial Shopping Malls / Office Spaces, Hotels, Special Economic Zones, IT and Bio-Tech Parks. Each of the "products" that are delivered as part of these are attempted to be unique by the builders, not only within their own product families but also across competitor firms. Therefore one can see "Theme" based development, "Green" projects, "Low-Cost" housing solutions etc. with some eye-catching and innovative architectural designs still others can be differentiated by the scale of the projects and thus the focus on "Integrated Townships".
CURRENT VERTICAL ANALYSIS
Avenue for exponential growth:
According to the report of the Technical Group on Estimation of Housing Shortage, an estimated shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12) provides a big investment opportunity.
According to a report ‘Emerging trends in Real Estate in Asia Pacific 2011', released by PricewaterhouseCoopers (PwC) and Urban Land Institute (ULI), India is the most viable investment destination in real estate. The report, which provides an outlook on Asia-Pacific real estate investment and development trends, points out that India, in particular Mumbai and Delhi, are good real estate investment options for 2011. Further, real estate companies are coming up with various residential and commercial projects to fulfill the demand for residential and office properties in Tier-II and Tier-III cities.
Real estate plays a crucial role in the Indian economy. It is slated to grow at 30% over the next decade. The Indian real estate market size is expected to touch $180 billion by 2020. The housing sector alone contributes to 5-6% of the country’s GDP. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.
According to a study by ICRA, the construction industry ranks 3rd among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. A unit increase in construction expenditure generates five times the income, having a multiplier effect across the board. With backward and forward linkages to over 250 ancillary industries, the positive effects of real estate growth spread far and wide. Truly, real estate is a growth engine for India’s economy.
Role of ERP in Real Estate Industry:
Information technology and internet has revolutionized the way real estate business is done.
With the use of an ERP Solution, the sales workforce of a Real estate company can have on line access to the property database with crucial information like property booking status, customer payment status etc. With the power of real time data at hand, they are able to reach out to a broader audience including prospective buyers, property owners, and agents spread across different regions. By using the Online booking engine, prospective buyers can browse through details of properties and available payment options, select the desired property and book it online by using an integrated secure payment gateway that ensures safety of online transactions. Applications based on a CMS (Content Management System) can be integrated with the solution making real estate companies to update and publish details of properties easily.
CHOICE OF ORACLE ERP PRODUCTS
Filix recommends a staged implementation of ERP for the Real Estate sector in India rather than a big-bang approach. This would help them to get the basic operating procedures and data in line with ERP requirements and vice-versa. Then on the ERP footprint can be increased to take the larger benefits and MIS as per the business needs. Whatever way you would like to implement, Filix services are available for both phased and big-bang approaches for implementation.
For its clients in the Real Estate sector, Filix recommends implementation of Oracle Customer Relationship Management to provide the required customer interface. The relevant Oracle E-Business Suite Release 12 modules namely, Oracle Financials, Oracle Property Manager, Oracle Purchasing and Oracle Inventory are needed to handle business operations and in addition Filix Commercial Application is deployed to cater to the client specific property management needs. Oracle Projects Costing and Oracle Financial Analytics come in handy in providing real-time integrated information on project cost and performance.
On the whole, the package mentioned above enables the client a better management of their back-office support and improvement in operational efficiency.