The real estate sector in India, has seen a dramatic shift since 2005, when the Reserve Bank of India allowed foreign direct investments. The real estate sector generally consists of residential, commercial, IT park, offices, retail, hospitality sector, institution buildings. After a decade and a half, it’s the norm to have investors in practically large projects due to multiple factors such as technology in government organization for approval, RERA (Real Estate Regulatory Act), uniform taxation (GST – Goods and Services Tax), slowdown in Indian economy, acceptance of real estate funds for growth of business, success stories of REIT, (Real Estate Investment Trust), requirements of processes and systems to monitor and control profitability.
Project Life Cycle
31 Activities
4 Segments
- Before Investment
- Design and process & systems
- Execution
- Project completion
See Video or continue reading
Before Investment (4 Activities)
- Identification of land parcel/project
- Market research for the product to be developed at particular location
- Carrying out feasibility study of project for determining profitability matrix
- Bringing Investors on board
Design and Processes & Systems Setup (14 Activities)
- Defining final product to be developed
- Framing initial schedule and budget
- Streamlining marketing and sales strategies
- Finalizing project brief
- Defining management information system (MIS)
- Arranging funds as per initial cash Flow
- Framing multiple communication channels
- Finalization of organization structure (Both head office as well as project level)
- Project management team on board (In house or third Party)
- Appointment of architects and consultants
- Design process for approvals as well as Issue of construction drawings
- Marketing & sales strategies implementations
- Tendering/contracting
- Finalization of cash flow based on schedule and budget
Execution (7 Activities)
- Project team on board
- Receipt of approvals
- Project launch
- Defining project development strategy (Processes & systems)
- Contractors on board
- Coordination with multiple stakeholders
- Monitoring and controlling of project progress, sales/lease and funding
Project Completion (6 Activities)
- Practical completion of project
- Property management team on board
- Receipt of occupation certificate from relevant authorities
- Project completion by project team
- Project handover to third party
- Financial closure of project
These 31 activities varies based on project’s parameters and organization’s structure
For details of each activity, please check for Detailed Project Life Cycle
Wherein ownership, contribution from teams and processes involved are explored.
Related reading
2.2 Detailed Project Life Cycle
Lead role, Teams, Decisions and Decision makers
2.3 Importance of Time, Cost, Quality and Processes & Systems
Introduction of fourth dimension to universally accepted triangle
2.4 Significance of written communications in Execution Management: Project Development Strategy
Understanding 16 parameters
2.5 Project Budget: PMC & Template
Preparation, Monitoring & Controlling the budget.
180+ items in 2 segments & 8 sections