The 4Ps Model That Real Estate Follows

Flats in Thane | The 4Ps Model That Real Estate Follows
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The 4Ps of Policy, Planning, Performance and Profitability are indispensable ingredients of the real estate business

With the implementation of the Real Estate (Regulation and Development) Act (RERA), the real estate sector is slowly becoming regulated. One of the things that many developers abide by in order to maintain balance and stability in their business, especially after RERA, is the 4Ps model — Policies, Planning, Performance and Profitability. According to the city developers, a change in one triggers the change in the rest and at the end the result is calculated in terms of profitability.

“Like any business structure, it is imperative to understand and implement the elements directly influencing it. Speaking strictly about real estate, the 4Ps of policies, planning, performance and profitability work together to ensure sound development and results. Policies and provisions must be stable, continuous, and consistent to maintain sustainable growth,” informs Dharmesh Jain, chairman and managing director of Nirmal Lifestyle. He further explains, “Then creating plans for the execution of the said policies help the construction companies to chart a correct course for achieving goals.

Accurate plans with foresight further serves to enhance overall performances. Each of these factors stand significant but at the same time intrinsically depends on each other. And lastly, the cohesive impact of all the above ‘P’s is instrumental in achieving results and ultimately works to generate more sales and profitability.”


The real estate industry in India has witnessed major changes in the last one year. Hence, the 4Ps model is considered as main pillars to achieve success in business. “I think these 4Ps are present in almost every industry. You need to have transparent policies, great amount of planning and great execution.

The real estate industry in India is dominated and impacted by factors like economy, government policies, location, demographics and interest rates. These parameters are fundamental contributors to the country’s financial development and economic growth,” informs Srinivas Gopalan, CEO of Ozone Group.


Although each element is inter-connected with one another, for some city developers planning stage is more important keeping the current scenario in view, whereas some developers hold the right policies and executing good performance at a higher level. “The process of planning has become of utmost importance under the RERA regime. Earlier buying land, getting approval and pre-launch were possible before the planning process. Right now everything has to be planned 365 days before the project is being launched.

Once the project has been launched, the developers only have to focus on selling and executing the project. It has finely compartmentalized the planning and the performance side. I believe once you are focusing only on performance, profit is only an outcome,” said Gopalan.

Whereas Amit Wadhwani, director of Sai Estate Consultants says, “One can always work on profitability and planning, policies are made by the government and hence we do not have an option of changing or adding to it, hence performance is the only section that can drive all the other parameters.

Performance is a subjective issue with various minor parameters attached to it like quality, clear communication and customer satisfaction. Hence with better performance the under doings in the other parameters can be uplifted.”

However, some developers hail policies as an important factor to promote realty growth as it has a significant impact.

“Policies will shape the way business is carried out which has direct bearing on the progress of an organisation. Developers must give guidelines due importance, as these policies will eventually define organisational and operational structure of a company, while its implementation is essential to the health of a business,” said Jain. Nevertheless, the 4Ps are identified as essential pillars of the industry and when followed, will ensure increased returns and unified functioning.

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