Posted by While unsold inventory roles up to 52% for some segments for mid-small firms. How Rest Can Catch Up?
Why big builders do IPO, Rest struggle
This week, I met strategy head of a famous builder who are quietly preparing for IPO at stock exchange. They are preparing for digitization big time to get efficient. This led to my study – “Why few Big builders eat all market?”
Prestige, DLF, Godrej, Lodha, Signature – The Big 5
Picture the scene for smaller builders for whom the inventory is piling up.
However, just top 5 did roughly pre-sales of 35,000cr. After that 23 big builders which are listed on stock exchange did combined 18,000cr. This doesn’t count likes of Hiranandani which are big but not listed.
Big top 1% control most market, mid to small builders struggle
Indian real estate is story of two markets, and it’s got me thinking about what’s really going on.
Problem of mid to small builders
On other side – builders find the inventory is building up, cost of leads is too high. Real estate channel partners are worried their generated lead is stolen by other partners. Customers are irritated due to high number of unsolicited calls.
My wife filled a form on a property website as she’s looking to invest. Within 1 day – she got so many calls from builders that as a customer – it got me thinking – “Are smaller builder just spending too much? While customer is getting irritated?”
Customer need space in the home & also space to take their decision
While smaller builder spend a lot on getting calls, spend on ads – customer wants to take their own time & space. Too much push for sales is actually taking customers away.
Why big builders win
The Giants’ Edge—and the Struggle for rest
I’ve watched brands like Prestige and DLF thrive, and it’s no mystery why. Their strong names, built over decades, pull buyers in. They’ve got slick sales teams, efficient processes, and even tech to move properties fast.
Overall Housing sales dipped 14-28% year-over-year in top cities
Adding to more problems for mid size builders.
Premium unsold inventory rose 52-54%
Unsold inventory jumped 5% to 4.95 lakh units, with premium homes seeing a 52-54% rise.
I’ve talked to developers who pour their hearts into projects, only to hit delays, wrestle with regulatory red tape, and then watch sales not hitting.
It’s a known way that builders claim only few flats are left, when customer visits – but new age customers have so many choices. They go after brand.
On the buyer’s side, I get it—there are so many choices. But many aren’t ready to buy yet.
How do builders find where to focus?
How do builders figure out who to focus on? Still keep cost low.
But it’s tough and expensive when you’re juggling hundreds or thousands of leads.
Smaller builders and brokerage firms face low Lead Conversion
Smaller builders and brokerage firms face low lead conversion, sky-high customer acquisition costs, and inventory that just sits there.
That’s reality of real estate
Prepare to qualify 1000s of leads
Ideally, Real estate has to reach 1000s of customers & customers would like trusted advisors, staying close to prospects over months.
Guide, follow up with customers without pushing with AI
I have spoken to many brokerage firms. Many think that branding will need a lot of money. So they end up just calling people up. Customers complain because they get too many calls.
One firm told me that “I don’t call too much, because then customer thinks we are despearate”.
But remember – Customer will see digital ads from large brands. They will remember large firms.
So, solution?
A Way Forward: Smart Tools and Smart Branding
First thing I suggest real estate builders is –
Be a trusted advisor than a pushy salesman
But that doesn’t mean not contacting customers at all. Out of sight is out of mind.
Real estate should use smart digital tools like AI Kavya to connect with 1000s of customers just as if your human sales. So, she will keep customer engaged, create brand value for you. But call customer only when they want you to.
AI CRM, Follow ups
All firms are preparing to engage 1000s of leads, stay in touch with customers. One of mid size builders in Pune is preparing for 80,000 leads a month through digital tools. This needs CRM & other revenue tools, omni channel access..
Role of AI for Real Estate
It’s time to adopt AI for Real Estate. Both Builders & channel partners. Your teams have to be very very efficient in managing so much noise & filter out right customers. Plus, customer has to get a cozy feeling. They don’t like pushy sales people or too many calls.
AI Employees aka AI Real Estate consultant, crafted to tackle India’s Real Estate chaos. She talks like humans to all sort of customers, without being pushy. She can book field visits, filter leads before they come to your expensive callers & It digs into data to uncover trends—like a surge in villa demand in Hyderabad’s suburbs—before competitors catch on. AI can filters out reduce your customer acquisition cost, improve experience.
Picture this: AI alerts a partner that a family eyeing flats near Bengaluru’s tech parks, beating rivals who’re still blasting generic ads. Or it warns a builder of a cooling market in Gurugram, suggesting a pivot to rentals (Vaayu’s high-ticket sales). Scalable and intuitive, Kavya fits firms big and small. Why settle for outdated playbooks when you can lead the pack? Curious how this could reshape your deals?
Conclusion (Action)
Real Estate market isn’t easy, but it’s not hopeless. I’ve found some practical ideas in places like blogs on Vaayu’s site, where folks share how AI can smooth out sales and make brands stickier for less. For builders feeling the pinch, it might be worth exploring digital tools or rethinking how they connect with buyers. The top 0.1% aren’t going anywhere, but with the right approach, the rest can carve out their space. I’ve seen it happen, and it gives me hope that adaptation can turn the tide in this tough, top-heavy world.
AI can do a lot more. Reach out if you are interested
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