Harshul Savla’s journey through the Real Estate industry is a story of perseverance, adaptability, and a deep-rooted understanding of the sector’s intricacies. Coming from a family of entrepreneurs, Savla’s exposure to various business ventures early on set the stage for his eventual foray into Real Estate. His journey is marked by both challenging periods and insightful observations, offering valuable lessons for those entering the field today.
Early InfluencesÂ
Savla’s family background in business, spanning industries such as manufacturing and Real Estate, played a pivotal role in shaping his entrepreneurial spirit. After graduating from Business School, Savla ventured into the corporate world, interning at Citibank and working at JLL for two years. It was during his stint at JLL that he realized Real Estate was his true calling, as he gained exposure to the organized side of the industry. “The organized side of Real Estate I saw at JLL gave me a glimpse of how Real Estate could evolve,” Savla shares. “It was an eye-opening experience that guided my decision to join the family business in Real Estate.”
Navigating Through Challenging TimesÂ
Savla joined the family business in 2014, during a period he describes as “fence sitting.” The market was characterized by indecision, slow transactions, and a lack of fluidity. This phase extended up until the pandemic, testing Savla’s patience and resolve. “That period felt like a PhD in Real Estate,” Savla reflects. “It was a test of patience and survival skills. Many couldn’t complete the course, but those who persevered emerged stronger and more grounded.” Despite the challenging environment, Savla considers this period a blessing in disguise. It provided him with a solid foundation and survival skills that would prove invaluable during subsequent boom periods. He also emphasizes the resilience of the Real Estate sector in the face of adversity. “You don’t see six lakh crores getting lost,” Savla points out. “Force majeure events, like the pandemic, actually became a boon for the sector, adversity does really well for Asset Classes of gold and Real Estate.”
The Decade of IndiaÂ
Savla is optimistic about the “Decade of India”, a period of substantial growth and transformation in the Real Estate sector. As the country undergoes economic expansion and infrastructural development, Savla sees opportunities for investors and developers to leverage India’s demographic dividend and strategic market positioning. He stresses the importance of understanding diverse asset classes like warehouses, office spaces, retail spaces, data centers, and REITs (Real Estate Investment Trusts). Real estate literacy is crucial for guiding investment decisions and ensuring successful outcomes. “Real estate literacy is essential but often missing in individuals,” Savla explains. Savla believes the next decade offers India a chance to become a major player in the global Real Estate market. His insights offer a roadmap for navigating this exciting period and maximizing the country’s potential for growth and development.
Survival Tips and Strategies for Real Estate DevelopersÂ
Savla offers several survival tips for those entering the Real Estate field today, emphasizing the importance of financial stability, understanding micro markets, and choosing the right partners. He advises:
- Financial Stability: “Do lesser work but ensure financial closure in whatever you do,” Savla suggests. “It’s crucial to have a solid financial foundation for each project to take it towards maturity.”
- Understanding Micro Markets: “Real estate is a micro market business. Your reading of the market dictates your product’s success, tailor your projects accordingly.”
- Choosing the Right Partners: Savla stresses the importance of carefully selecting partners. “A wrong partner can mess up all the other aspects of your business. Choose wisely and aim for clear, dispute-free deals.”
- Succession Planning: He also highlights the need for a clear succession plan, saying, “Try going out for a month and see if your business can still function without you. If not, you need to set up a plan.”
Real Estate in the Modern AgeÂ
Savla is well aware of the challenges and opportunities presented by the modern real estate landscape. He emphasizes the importance of brand management in the age of social media and the need for alternate cash flow plans. “Today, brands can be built and destroyed in a matter of days. Managing social media presence is crucial,” he explains. “Additionally, having alternate cash flow plans can help manage cash flows more effectively and ensure business continuity.” Savla also underlines the importance of real estate literacy, noting that it is essential for individuals to understand the different facets of real estate investment, such as warehouse spaces, office spaces, retail spaces, data centers, and REITs (Real Estate Investment Trusts). “Real estate literacy is something very essential and missing,” he adds. “This lack of literacy is what creates the issues we see in the sector.”
Advice for Newcomers
For newcomers in real estate, Savla’s advice is clear: prioritize cash flow management. “Cash flow is the real lifeline,” he says. Maintaining solid cash flow helps manage project financing and prevent undervaluation due to the temptation to sell at a discount. Savla’s journey demonstrates that real estate is an industry of cycles, where success depends on resilience, adaptability, and strategic decision-making. His story serves as a valuable guide for aspiring real estate professionals looking to navigate the dynamic landscape of the industry. Through his dedication and adaptability, Savla exemplifies the essence of the people who make real estate the dynamic field it is today.
