Need for Soft Skills and Business Skills in Real Estate

By Shubika Bilkha

The real estate sector that is slated to be a $180 billion industry by 2022, is one of the largest contributors to the economy and a key employment generating sector. It has been estimated that to build the Government’s Development Agenda, there is a requirement of 75 million skilled people in the sector by 2022. In fact, according to reports, the current requirement of core professionals in the sector is about 4 million.

This large skill deficit in a crucial segment of our economy is a looming concern for all stakeholders. This is particularly relevant as the sector is in a transformational phase with new regulations and a focus on increased transparency, amidst a thrust by the Government to accomplish its urban development and ‘Housing for All’ target.

As one of the few educational institutes dedicated to training people for the real estate sector, we have made a number of observations of the different skill sets that are required to succeed in real estate as both professionals and as leaders. The definition of a developer under the New Act requires professionals and leaders to be multi-faceted as they need to pull together land aggregators, delivery experts, compliance officers, capital providers and consumer evangelists. Apart from technical capabilities, real estate professionals need to be competent in a number of softer or non-technical skills to survive in this highly competitive and increasingly regulated segment.

A few non-technical skill sets that are required include:

1. Customer Centricity: Real Estate is one of the largest investments a person makes in their lifetime, and hence the onus is on real estate companies and professionals to “think customer”. In a tepid sales environment, with excess inventory, increased consumer activism and competition, this need has never been more heightened. Real Estate professionals need to identify customer needs, create a positive ongoing experience, build a sustainable relationship and ensure that they manage conflict by prioritizing delivery.

Skills Required: Professionals should develop good business communication skills (email, phone, face to face, follow-ups), increasingly focus on building listening skills, ensure that they research every single customer to provide a curated experience, understand the different customer requirements and understand that ‘customer centricity’ is everybody’s job in the organization.

2. People Management: In this multi-faceted role of a real estate professional, managing relationships within the organization, with managers/leaders, with vendors, with governing bodies, with customers and with peers, is of paramount importance.

Skills Required: Real estate is a people centric business irrespective of your job profile. With high employee attrition rates, increasing competition and the prevalence of the digital medium, managing relationships, conflict resolution, rewarding quality delivery and performance, motivating your peers, and building/managing long-term relationships (with vendors and customers) is essential.

3. Strategic Planning and Time Management: The implementation of the New Act RERA, puts increasing pressure on real estate companies to deliver on time and ensure quality. The Act places penalties on delayed possession and has a defect liability period of up to 5 years on structural defects.

Skills Required: Project management skills are crucial to successfully run and operate a real estate business. From the project planning to registration to development to managing project costs to sale to ongoing maintenance all require an organized approach to development. Since any real estate project requires multiple stakeholders, having a clear action plan, time management, budget and cost estimation, managing compliances and vendors, marketing and sales plans are all essential. Project management programs are a must for all real estate professionals today.

4. Sales and Negotiation Skills: Real estate is a “high value” sale where a home buyer is both pragmatic and emotional. Sales techniques need to follow a consultative selling approach to personalize the sales communication to understand the customer’s requirements. Additionally, in an environment where sales have been low and the inventory build-up is high, professionals need to be ready with strong negotiation skills (with both customers and vendors).

Skills Required:

Consultative selling unlike direct selling requires a lot more effort on the part of the sales professional. It requires very good communication skills, an ability to listen, to ask structured yet relevant questions in a non-intrusive manner and to be familiar with all the technical details of the project/industry. It requires a professional to read the customer both via verbal and non-verbal communication and make promises that are genuine. It also requires professionals to be self-aware, confident, accept feedback and be non-reactive in their communication.

Negotiation skills across job profiles in real estate are essential when dealing with customers and vendors. Professionals should learn how to balance a good negotiation with leaving enough on the table such that both parties feel like they made a good deal. This is vital to manage and build long-term relationships with all stakeholders.

Other skills required include leadership, conflict management, emotional intelligence and an ability to problem solve. And last but most importantly resilience to enable professionals adapt, evolve, scale and emerge unscathed in a transitionary environment.

About the Author:

Shubika Bilkha

Shubika Bilkha is Business Head of The Real Estate Management Institute (REMI). Shubika is an alumna of Mount Holyoke College, USA and Columbia Business School, USA; an Associate Member of the Chartered Securities Institute (CSI) in the UK; and has completed the “Building Excellence in Higher Educational Institutions” at the Indian School of Business (ISB), Hyderabad.

More articles by this Author:

Architecture career trend in India – rising demand for trained professionals