Re/MAX India is one of the world’s leading Franchisors of real estate brokerage services and operates in 100 plus countries across the globe. It has played a pioneering role in organizing the unorganized real estate market in various countries. In India, Re/Max launched its services in 2005 and has 70 offices with over 200 agents.
Replying to Yash Ved of Newsbarons, Yatin Sharma, COO, Re/MAX India informed, “We currently service top 23 towns in India and plan to expand 100 cities by 2025.”
NB: Brief us about your business model?
Yatin: RE/MAX India will be looking forward to building the same Brand Recall in India and becoming an undisputed market leader in Real Estate Transactions.
In India, RE/MAX concept will combine maximum commissions and the best support services to attract top agents and will also increase the number of new entrants to the real estate industry.
At our offices, agents share office overheads, pay management fee and in return receive a wide variety of real estate services like referrals, high commissions, benefits from national as well as region centric advertising campaigns, superior training, professionalism and growing market share.
We blend the administrative skills of our franchisees and the salesmanship skills of its Broker Associates and create an organized and professional framework, where consumers would be not only able to buy/sell real estate but also find financial and legal assistance, all under one roof. Our website will be an interface through which the potential buyers and sellers can find listings in any of the regions in the country. Moreover it will also provide our agents and consumers with access to perform real estate transactions in more than 75 nations in which we are operational.
NB: You have recently sold stake to Franchise India? Brief us about more about the deal?
Yatin: Franchise India has acquired 51% in the property brokerage network, Re/Max India for an estimated INR 60 Crore, as it expects huge jump in business with implementation of new real estate law. This acquisition allows both the companies to pursue potential near-term opportunities to create additional value through a lot of synergies from each other, the venture that boasts about an 18 years old parentage of business consulting for SMEs and a team of pedigreed experts will be pumping in over 50 Crore as growth capital at a valuation of over 100 Crore.
NB: What are your plans going forward?
Yatin: We have trained around 1000 people till date and look forward to train more in the coming future and help the industry in professionalizing. With our 2000 video programs, different courses and certified trainings, we are excited to contribute in the development and evolution of the real estate industry. We are also looking to hire a good percentage of women brokers as we believe in hiring the right people for our Indian network as part of the equal opportunity policy.
How many franchise offices are you planning to open?
We have 60 offices across the country. The new joint entity will now be under the Franchise India umbrella and we aim to open 1,000+ franchise offices and take the agent count to 5,000 by 2020.
NB: Your take on RERA and GST?
Yatin: Indian Real estate is at the cusp of getting organized. Indian real estate has attracted $32 bn in private equity so far. The global capital flow into Indian real estate in 2016 stood at $5.7 billion and just the first quarter of 2017 saw a massive $3.41 bn enter the market. With the changes in its regulatory framework and with the launch of Real Estate Investment Trusts, we are all set to achieve its goals with a dedicated team of professional broker offices & agents.
After GST and RERA, the real estate industry is going to evolve and will also help the consumers in getting what they want, on time and without any fraud. This will also help us in accelerating our business.
With real estate regulator (RERA) kicking in and renewed focus on reviving the real estate sector in the country, developers and customers are now looking at globally renowned brokerage consultants to bring transparency in realty deals. We are at the forefront for complying with RERA regulations and all our brokers would be soon RERA compliant.
NB: Do you see correction in prices?
Yatin: There is little evidence of any major price correction in the secondary or resale real estate market after demonetization. The survey which takes into account the immediate quarter of demonetization suggests that despite cash ban the much expected landslide price depreciation of 5-20% did not materialize for the lack of transaction volumes in the market and stickiness to price from the seller side.
‘Ready-to-Move-In’ properties continue to command a premium over, under construction properties, according to the survey. However, the price of such properties has seen a comparative decline. At the same time, price of under construction properties has seen a marginal increment, net result being closing of gap between price of ‘Ready-to-Move-In’ and ‘Under-Construction’ properties.
NB: What is your vision?
Yatin: RE/MAX India’s mission is to develop a premium quality real estate system in providing sustained value to end users and community by consistently delighting the customer with best-in-class service through a superior broker network and an empowered and energized work force.
As an equal opportunity player, the company is planning to hire more women brokers in India keeping in line with RE/MAX international’s network statistics where 55% of 116000+ agents are women. The brand is also planning to pump in over INR 50 crore as growth capital and incubate realty start-ups.