Influence of Marketing Strategies on the Valuation of Residential Properties in Real Estate Development

Abstract

The magnitude of Indian Residential Real Estate Market has progressed rapidly which has obligated the Residential Real Estate Sector to become extremely competitive. The high returns and profits in the real estate industry and due to the cutthroat competition in current real estate market the operational environment has changed significantly from the developer oriented monopolized Seller\'s Market to the Buyer\'s Market. This intensive competition has propelled the developers to implement significant Marketing Strategies to sell their Projects. Real Estate Marketing and Real Estate Valuation are two diverse concepts and arenas nonetheless they are integral part of any Real Estate Project and Play a vital role in the development of any Real Estate Project. To understand the magnitude of Influence on the Property Valuation due to Significant Marketing Strategies a comprehensive Research Methodology is instigated wherein Literature Review is done on the Marketing Management, Consumer Behaviour and Real Estate Valuation Approaches. Various Case Studies are carried out on Real Estate Projects where the Marketing Strategies are implemented to sell the Residential Real Estate Projects. Through this analysis, it was instituted that – “There is an affirmative correlation between the use of Substantial Marketing Strategies and Enhanced Property Valuations.”

Introduction

Overview:
In India’s residential real estate sector, particularly in large-scale projects, marketing strategies are deeply intertwined with property valuation. Effective marketing not only enhances visibility and consumer engagement but also significantly affects the perceived value, influencing the final selling price.

Core Themes:

1. Marketing–Valuation Interdependence:

• Fundamental marketing elements—Product, Price, Place, Promotion—when strategically aligned with target customer needs, can significantly drive demand and boost valuations.

• Buyers at pre-construction stages rely on simulated projections and sales pitches, heavily influenced by marketing.

• Property valuation depends on location, quality, amenities, and future prospects, but is also swayed by how effectively these are marketed.

2. Research Purpose and Hypothesis:

• The study aims to evaluate the impact of marketing strategies on property valuation, determining if and how they inflate the perceived value over the fair market value.

• Hypothesis: There exists a positive correlation between substantial marketing efforts and increased property valuations.

Objectives:

• Establish correlation between marketing and valuation.

• Analyze the premium pricing dynamics in relation to marketing.

• Balance perceived vs. fair value in residential property pricing.

Scope & Limitations:

• Scope: Focused on Maharashtra's residential projects, exploring direct and indirect marketing effects using both marketing theory and valuation frameworks.

• Limitations: Restricted to regional dynamics; requires balancing technical factors (like construction quality) with marketing effects.

Key Concepts:

Valuation Approaches:

• Income Approach: Based on rental income potential.

• Cost Approach: Value = Land + Construction – Depreciation.

• Market Approach: Based on comparable property sales.

Marketing Frameworks:

• 4P: Product, Price, Promotion, Place.

• 4C: Consumer, Cost, Convenience, Communication.

• 4R: Relevance, Reaction, Relationship, Reward.

Consumer Behavior:

• Buyers’ choices are shaped by socio-economic, cultural, emotional, and digital factors.

• Developers must anticipate and respond to both current and future demand to stay competitive.

Findings:

• Marketing significantly impacts visibility, demand, and perceived value, driving price appreciation.

• Projects with strong brand positioning and emotional appeal command premium pricing.

• Despite this, fair valuation must account for technical realities like legality, location, and infrastructure.

• Marketing can amplify demand, but it must not overshadow actual value, or it risks misleading stakeholders.

Data & Methodology:

• Based on case studies, surveys, and interviews with valuers, marketing consultants, and consumer behavior analysis.

• Combines quantitative and qualitative research to validate the hypothesis.

Value Addition of the Study:

• Helps stakeholders (developers, buyers, valuers) make informed decisions.

• Promotes alignment between real estate marketing and accurate valuation.

• Supports brand equity building through realistic and effective strategies.

Conclusion

It can be stated that “There is an affirmative correlation between the use of Substantial Marketing Strategies and Enhanced Property Valuations” is true. Real Estate Marketing and Real Estate Valuation are two totally diverse concepts and domains but they play a very pivotal role in any Real Estate Project Life Cycle. The Consumer Behaviour and Marketing strategies collectively influence the Valuation of a Real Estate Property. The Conclusions drawn are as below: 1) Creative and Innovative Marketing Strategies of the Real Estate Project Position the subject project as unique proposition to the buyers leading the buyers to perceive the property as a more Valuable than a normal project enhancing the demand for a creative and innovative Real Estate Projects resulting in high perceived value in the minds of Valuers as well as Customers. 2) Enhanced Real Estate Valuation is directly affected by Marketing Strategies when the influential marketing attracts large number of audience stimulating and intensifying the Demand-Supply-Scarcity Approach which results in enhanced property Valuation created by demand factor. 3) Marketing Tools like Digital Marketing, Print Media and Audio Videos, Social Media, Website Listing including Search Engine Optimizations translates the enquires for a demand of Property in Market resulting in Overall Increase of Selling Price and ultimately affecting the Property Valuation. 4) The Property Valuation often is reduced when the Property Inventory is stagnant, unsold for a longer period in Open Market, Marketing Strategy withholds the Project Credibility in Competitive market and enables the Stakeholders including the Valuers to assess the Value of Property Appropriately. 5) The selling price of any property is derived by a developer, builder after an in-depth Market Analysis and after proposing an appropriate Marketing Strategy which gives rise to a demand driven market giving upper hand for the seller to bid Higher Asking Prices for the Property which results in Valuation Enhancement. 6) Market Analysis, Consumer Behaviour and Valuation collectively evaluate and analyse the prevalent competitive pricing from buyer preferences, comparable sales resulting in Mitigation of Overpricing of Property maintaining a healthy and sustainable Real Estate Market. 7) Marketing is about Creating Customer demand, retaining and increasing customers which attracts end users and buyers of property simultaneously resulting in Competitive Market Contributing in High Property Valuations.

References

[1] Marketing Management by Philip Kotler and Kevin Lane Keller, 15th edition, ISBN 978-0-13-385646-0, by Philip Kotler and Kevin Lane Keller, published by Pearson Education [2] Consumer Behaviour Building Marketing Strategy by Del I. Hawkins and David L. Mothersbaugh, 11th edition, Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. [3] Elements of Valuation of Immovable Properties by R.K.Gandhi [4] International Valuation Standards (IVS) by International Valuation Standards Council (IVSC) [5] The Guidelines/Rules/Regulation Set by Insolvency and Bankruptcy Board of India (IBBI) [6] www.ibef.org/ industry/real-estate-india.aspx)

Copyright

Copyright © 2025 Mr. Kuldeep D. Suryavanshi, Prof. Azharuddin N. Humnabad. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.