The recent decision of banning higher denomination currency note has shaken up almost every business domain in India, and the real estate market is also not an exception to it. Rather, it is one of the worst affected businesses because a high value is involved in each transaction. Though it is the third demonetization exercise post-independence, the impact this time is hundred times severe than the earlier ones.
It will be too early to pass judgment on the success and failure of this decision. Experts say that the long-term effects may take a few years to come to the surface. However, it is said to bring down the magnitude of the parallel economy and control the funding to various anti-national activities.
Just like every other business domain, the real estate market is also undergoing the situation of turmoil and uncertainty. People postponed their buying decisions and real estate developers reduced the outflow due to the cash crunch. It will be an exaggeration to call it a screeching halt, but the pace of the business has reduced undoubtedly.
Will real estate get a setback?
Well, there is a lot of contradiction and confusion in the air. While some call it a ‘devastating step for the real estate’, some call it a ‘booster dose’. The industry has been facing a tough time from past few years due to almost flat prices of property and a large number of unsold inventory in Class A and B cities. Yes, the sector hasn’t performed with its full potential for quite some time and the latest decision has added fuel to the fire.
Is it the right time to invest in real estate CRM then?
Post demonetization, real estate builders have an opportunity to transform their business processes.
Proper Leverage on the technology will help them build trust and transparency.
Presently, the real estate business might be on the moderate scale but it will soon catch momentum.
Hence to prepare for the peak of business is vital and the right time is now.
Real-Estate CRM, the gateway to the cashless world
Daebuild Real Estate CRM, for example, automates complete sales process for builders. Amongst several modules, Customer Management Module and Sales Management Module enable both customers and builders to conquer the challenges thrown by demonetization scenario. These modules help in smooth, cashless transactions that are transparent, accountable and valid.
Since Daebuild CRM is one of the versatile products built with a complete view of customer accounts, it brings robust sales accounting and customer management systems that offer various functionalities that make the financial transactions easy. The single console view gives the comprehensive view of the total outstanding amount across all units. Due to state-of-the-art 3-Tier Payment Reminder System, it keeps a stringent control of the financial situation.
The module offers a user-friendly interface to the customers where they get access to everything related to the financial aspect of the property purchased. Right from booking details to payment history, and white board to payment schedule; everything is available at the fingertips.
Payment integration relieves from the hassles of cash inflow
When customers use a robust CRM system, making payment is no longer a hassle. Going cashless is not a problem at all when CRM system is used by developers and builders. An online banking system can be integrated, which will make the payment process completely automated.
A single console is available for those who want to make payment. Automatic payment reminders increase the cash flow. Customers can login to the system and get the detailed payment history. Refunds, deductions, invoicing, receipt generation, receipt acknowledgment, interest computation, taxation reports; everything is available to make the life easy.
For builders, it is quite easy to collect payment and keep books of accounts updated using CRM system. Since every transaction is recorded, the system is completely transparent and fair.
Automation brings all kinds of benefits
As far as accounting is concerned, CRM makes it quite simple. CRM software is always equipped with accounting module that is user-friendly and comprehensive. With a plethora of transactional and MIS Reports, builders and developers can get the pulse of the business at a glance. Providing statutory reports is not a big deal. Revenue reports also become easy when the entire process is automated.
CRM is a robust and integrated system where all modules are interlinked. Thus, there is no room for data discrepancy and mismatch. The payment entry gets reflected in all the modules correspondingly. Hence, revenue reconciliation is easy.
Insulate your business from the effects of demonetization by using CRM
There has been some involvement of cash transactions in the real-estate business traditionally. Though the percentage is less, it is not possible to continue the practice in the changed scenario. It is needless to say that it will hamper the market up to some extent. If real-estate players decide to use automated CRM based system for every transaction, then it is a win-win situation for builders and buyers.
As the system stops people from paying cash and builders from accepting cash, there is no chance of malpractice. Every monetary transaction is fair, legal and valid.
Experts say that even if there is a dip in the market, it is a temporary phase. Very soon, real-estate market will regain the momentum as the fear factor gets reduced. With clear and fair policies coming in, the future looks promising. Barring the current difficulties, the decision is going to bring a good time for everyone related to the real-estate market.