These components are going to be constant for any individual project development

Land Cost
Construction Cost
Authorities and Compliances fees .

But the other components can be conceptually reduced.

Marketing Cost
Funds and Finance Cost
Profit

The Four Pillars of Real Estate Banking Management.

Unlike traditional cost management, Real Estate Banking Management streamlines expenses by focusing on four essential pillars:

• 1.Land Cost
• 2. Construction Cost
• 3. Compliance and Authority Charges
• 4. Profit

By greatly reducing marketing and project finance costs, we achieve significant savings – reducing marketing expenses from 12% to 17% and project finance costs from 18% to 28%. This results in a remarkable overall reduction of 30% to 45% in property costs, directly benefiting customers with more affordable pricing.

Sales and Marketing cost

Sales and marketing costs have been defined through two simple changes in implementation. While researching this industry, we found that the traditional real estate industry focuses on marketing costs specific to individual projects. However, we need to shift this approach to a common platform for task origination, which can be defined by two aspects of change:

Sharing common task origination platform

Customer Segment vs Projects origination

• Sharing common task origination platform
• Customer Segment vs Projects origination

Sharing a common platform

The key to streamlining operations lies in defining the origination of tasks and establishing an efficient process flow for each. In the real estate industry, two major tasks are crucial to any project:

• Construction
• Sales and Marketing

Both are essential and time-consuming processes that require careful coordination.

Process Flow of Construction Task:The construction process flows from sourcing land, acquiring necessary permits, and converting the site until it is ready for customer visits.

Process Flow of Sales Task:, The sales process involves tasks like creating advertisements and promotional materials, lead generation, site visits, and securing bookings.

A crucial aspect of this process is managing the ratio between generating leads and converting them into sales.

However, significant changes need to be made. Traditionally, in the real estate industry, the construction process is completed before sales tasks can begin. This results in delays and inefficiencies, as sales activities are often put on hold until construction is finished. Likewise, when sales tasks are in progress, construction tasks are delayed until customer bookings are confirmed.

This approach leads to wasted costs as marketing and sales efforts are tied to specific site timelines.

To optimize this, we are transitioning from project-specific marketing to a unified marketing platform. This shift allows both construction and sales tasks to be performed independently while being guided by a shared Unique Selling Proposition (USP). By referring to this central concept, each task can follow its process flow without being dependent on the other.

This approach minimizes unnecessary costs by eliminating the need to pause one task for the other, ensuring a more efficient use of resources.

Customer Segmentation vs. Project Origination

In the traditional real estate industry, the approach to project implementation typically involves identifying land or sites first and then attempting to match these properties with customers' needs, preferences, budgets, and location requirements. This often results in a high rate-to-ratio, typically at a 20:1 positive-to-booking ratio, meaning that for every 20 potential leads, only one results in a booking.

Typically, the process takes 45 to 60 days from the initial prospecting phase to securing a booking. This extended timeframe impacts the positive-to-booking ratio, often reducing it from 20:1 to 10:1.

In simpler terms, in traditional real estate management, only one out of every 20 positive leads may result in a sale, whereas in real estate banking management, this ratio improves to one out of 10.

By implementing this change, real estate banking management can produce multiple sites tailored to meet specific customer needs, preferences, and budgets, effectively segmenting customers for better targeting.

This shift would lead to a reduction in overall sales and marketing costs by 12 to 17%, optimizing resources and improving efficiency.

Project Finance Costs

In this context, we are shifting from relying on financial investors to engaging depositors within our multistate credit society, harnessing the power of depositor accumulation.

This transition strengthens the real estate sector by integrating banking functions, where we increase membership in our credit cooperative society, converting them into depositors in accordance with the societys by-laws. Rather than offering high returns to investors tied to specific projects, we distribute annual dividends and interest among the members and depositors of the society.

This approach enables real estate banking management to reduce project finance costs by 18 to 28%, as it shifts from private financing to a more sustainable model of cumulative finance through depositors, while adhering to banking guidelines and maintaining an optimal credit-to-deposit ratio.

ARBM – Builder Perspective

We approach each project with a construction-focused mindset, assuming full responsibility for delivering the project on time while maintaining provisions for Non-Performing Assets (NPAs).

Our team conducts thorough due diligence to ensure informed, decisive actions are taken at every stage of the process.

The SSD is treated as the project's initial buyer, with the property then being handed over to the marketing department to manage the final sale of the inventory.