real estate builders business plan

Be the agent who’s always there, and you’ll automatically beat the herd.

8. Have good time management.

If you’re like most of us, a big part of the dream is to have more time and energy for the things that really light you up.

But most agents who set out to build a real estate business haven’t built that into the plan. They end up with a revolving door of team members and have to outwork the business problem du jour. But it doesn’t have to be that way.

For experts in automation, a motivating factor is saving time. By eliminating manual work through automation, you can free up time to focus on the activities that actually drive revenue.

The ability to do marketing automation further underscores your need for a CRM, which ends up acting as the engine that supports your efforts.

Top tip for introducing automation: Start with low-risk tasks that you don’t want to handle.

Don't forget to share this post!

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• Writing a Business Plan

Writing a business plan may seem a daunting task as there are so many moving parts and concepts to address. Take it one step at a time and be sure to schedule regular review (quarterly, semi-annually, or annually) of your plan to be sure you on are track to meet your goals.

Why Write a Business Plan?

Making a business plan creates the foundation for your business. It provides an easy-to-understand framework and allows you to navigate the unexpected.

Quick Takeaways

• A good business plan not only creates a road map for your business, but helps you work through your goals and get them on paper
• Business plans come in many formats and contain many sections, but even the most basic should include a mission and vision statement, marketing plans, and a proposed management structure
• Business plans can help you get investors and new business partners

Source: Write Your Business Plan: United States Small Business Association

Writing a business plan is imperative to getting your business of the ground. While every plan is different – and most likely depends on the type and size of your business – there are some basic elements you don’t want to ignore.

Latest on this topic

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.

Defining Your Mis​sion & Vision

Writing a business plan begins by defining your business’s mission and vision statement. Though creating such a statement may seem like fluff, it is an important exercise. The mission and vision statement sets the foundation upon which to launch your business. It is difficult to move forward successfully without first defining your business and the ideals under which your business operates. A company description should be included as a part of the mission and vision statement. Some questions you should ask yourself include: 

• What type of real estate do you sell?
• Where is your business located?
• Who founded your business?
• What sets your business apart from your competitors?

What is a Vision Statement ( Business News Daily , Jan. 16, 2024)

How to Write a Mission Statement ( The Balance , Jan. 2, 2020)

How to Write a Mission Statement ( Janel M. Radtke , 1998)

Using a SWOT Analysis to Structure Your Business Plan

Once you’ve created a mission and vision statement, the next step is to develop a SWOT analysis. SWOT stands for “Strengths, Weaknesses, Opportunities, and Threats.” It is difficult to set goals for your business without first enumerating your business’s strengths and weaknesses, and the strengths and weaknesses of your competitors. Evaluate by using the following questions:

• Do you offer superior customer service as compared with your competitors?
• Do you specialize in a niche market? What experiences do you have that set you apart from your competitors?
• What are your competitors’ strengths?
• Where do you see the market already saturated, and where are there opportunities for expansion and growth?

Strength, Weakness, Opportunity, and Threat (SWOT) ( Investopedia , Oct. 30, 2023)

How to Conduct a SWOT Analysis for Your Small Business ( SCORE , Apr. 28, 2022)

SWOT Analysis Toolbox ( University of Washington )

Setting ​Business Goals

Next, translate your mission and vision into tangible goals. For instance, if your mission statement is to make every client feel like your most important client, think about the following:

• How specifically will you implement this?
• Do you want to grow your business?
• Is this growth measured by gross revenue, profit, personnel, or physical office space?
• How much growth do you aim for annually?
• What specific targets will you strive to hit annually in the next few years?

Setting Business Goals & Objectives: 4 Considerations ( Harvard Business School , Oct. 31, 2023)

What are Business Goals? Definition, How To Set Business Goals and Examples ( Indeed , Jul. 31, 2023)

Establishing a Format

Most businesses either follow a traditional business plan format or a lean startup plan.

Traditional Business Plan

A traditional business plan is detailed and comprehensive. Writing this business plan takes more time. A traditional business plan typically contains the following elements:

• Executive Summary
• Company description
• Market analysis
• Organization and management
• Service or product line
• Marketing and sales
• Funding request
• Financial projections

Lean Startup Plan

A lean startup plan requires high-level focus but is easier to write, with an emphasis on key elements. A lean startup plan typically contains the following elements:

• Key partnerships
• Key activities
• Key resources
• Value proposition
• Customer relationships
• Customer segments
• Cost structure
• Revenue stream

Creating a Marketing Plan

You may wish to create a marketing plan as either a section of your business plan or as an addendum. The Marketing Mix concerns product , price , place and promotion .

• What is your product?
• How does your price distinguish you from your competitors—is it industry average, upper quartile, or lower quartile?
• How does your pricing strategy benefit your clients?
• How and where will you promote your services?
• What types of promotions will you advertise?
• Will you ask clients for referrals or use coupons?
• Which channels will you use to place your marketing message?

Your Guide to Creating a Small Business Marketing Plan ( Business.com , Feb. 2, 2024)

10 Questions You Need to Answer to Create a Powerful Marketing Plan ( The Balance , Jan. 16, 2020)

Developing a Marketing Plan ( Federal Deposit Insurance Corporation )

Forming a Team

Ensuring the cooperation of all colleagues, supervisors, and supervisees involved in your plan is another important element to consider. Some questions to consider are:

• Is your business plan’s success contingent upon the cooperation of your colleagues?
• If so, what specifically do you need them to do?
• How will you evaluate their participation?
• Are they on-board with the role you have assigned them?
• How will you get “buy in” from these individuals?

How to Build a Real Estate Team + 7 Critical Mistakes to Avoid ( The Close , May 17, 2023)

Don’t Start a Real Estate Team Without Asking Yourself These 8 Questions ( Homelight , Jan. 21, 2020)

Implementing a Business Plan and Reviewing Regularly

Implementation and follow-up are frequently overlooked aspects to the business plan, yet vital to the success of the plan. Set dates (annually, semi-annually, quarterly, or monthly) to review your business plans goals. Consider the following while reviewing:

• Are you on track?
• Are the goals reasonable to achieve, impossible, or too easy?
• How do you measure success—is it by revenue, profit, or number of transactions?

And lastly, think about overall goals.

• How do you plan to implement your business plan’s goals?
• When will you review and refine your business plan goals?
• What process will you use to review your goals?
• What types of quantitative and qualitative data will you collect and use to measure your success?

These items are only a few sections of a business plan. Depending on your business, you may want to include additional sections in your plan such as a:

• Cover letter stating the reasoning behind developing a business plan
• Non-disclosure statement
• Table of contents

How To Write a Business Proposal Letter (With Examples) ( Indeed , Jul. 18, 2023)

How To Implement Your Business Plan Objectives ( The Balance , Aug. 19, 2022)

The Bottom Line

Creating a business plan may seem daunting, but by understanding your business and market fully, you can create a plan that generates success (however you choose to define it).

Real Estate Business Plans – Samples, Instructional Guides, and Templates

9 Steps to Writing a Real Estate Business Plan + Templates ( The Close , Apr. 3, 2024)

How to Write a Real Estate Business Plan (+Free Template) ( Fit Small Business , Jun. 30, 2023)

The Ultimate Guide to Creating a Real Estate Business Plan + Free Template ( Placester )

Write Your Business Plan ( U.S. Small Business Administration )

General Business Plans – Samples, Instructional Guides, and Templates

Business Plan Template for a Startup Business ( SCORE , Apr. 23, 2024)

Guide to Creating a Business Plan with Template (Business News Daily, Mar. 28, 2024)

Nine Lessons These Entrepreneurs Wish They Knew Before Writing Their First Business Plans ( Forbes , Jul. 25, 2021)

How to Write a Business Plan 101 ( Entrepreneur , Feb. 22, 2021)

Books, eBooks & Other Resources

Ebooks & other resources.

The following eBooks and digital audiobooks are available to NAR members:

The Straightforward Business Plan (eBook)

Business Plan Checklist (eBook)

The SWOT Analysis (eBook)

The Business Plan Workbook (eBook)

Start-Up! A Beginner's Guide to Planning a 21st Century Business (eBook)

Complete Book of Business Plans (eBook)

How to Write a Business Plan (eBook)

The Easy Step by Step Guide to Writing a Business Plan and Making it Work (eBook)

Business Planning: 25 Keys to a Sound Business Plan (Audiobook)

Your First Business Plan, 5 th Edition (eBook)

Anatomy of a Business Plan (eBook)

Writing a Business Plan and Making it Work (Audiobook)

The Social Network Business Plan (eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Writing an Effective Business Plan (Deloitte and Touche, 1999) HD 1375 D37w

Have an idea for a real estate topic? Send us your suggestions .

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

Building a Solid Foundation: How to Create a Real Estate Business Plan That Works

A killer real estate business plan isn't just about setting a goal to hit 1 million in sales next year. (It would be a lot easier if it were!) 

A truly great real estate business plan defines exactly what drives your business, where you're headed, and how you'll navigate the market's unpredictable currents. It should be a razor-sharp action plan to scale your real estate empire. 

So, how do you craft this master blueprint without getting bogged down in the details? 

If you’re ready to join the cast of Million Dollar Listings—or if you just want to grow your modest real estate business—we can help.   

We’re going to break down how to create an actionable real estate business plan in just six steps. Your future self, with a thriving real estate portfolio, will thank you. 

What Should a Real Estate Business Plan Include?

A real estate business plan is a comprehensive document designed to help you navigate the ups and downs of the real estate industry and plan for long-term growth. 

TL:DR: A great business plan serves as a complete roadmap to help you get from where you are now to where you want to be. 

So, what should your real estate business plan include? The best plans include these eight sections: 

• Executive Summary: A concise introduction to your real estate venture. Highlight your primary goals, the niche you're targeting, and your unique value proposition in the real estate market.
• Business Description: Discuss the scope of your real estate operations—whether you're focusing on residential sales, commercial properties, rentals, or a mix. Also, mention the regions or neighborhoods you're targeting.
• Market Analysis: Delve into housing trends, regional property demand, and average property values in your selected areas. Study growth patterns and forecast potential shifts in the market.
• Marketing and Sales Strategies: Explain how you'll attract listings and buyers. This might include leveraging MLS, hosting open houses, using digital marketing tactics, or networking at community events.
• Service Offerings: Detail the range of services you plan to offer. This could include buying/selling, property management, consultation, or even staging homes for sale.
• Organizational Structure and Management: As a solo realtor, this might be about your role and responsibilities. If you have or plan to have a team or build a brokerage, describe team member roles, responsibilities, and expertise.
• Financial Projections and Strategy: Outline anticipated earnings from property sales or rentals, operational expenses, and commissions. Factor in marketing costs, licensing fees, and other industry-specific expenses.
• Growth Plan: Since real estate is as much about scaling and expansion as it is about individual sales, describe how you plan to grow—by expanding into new areas and niches, or by adding more agents to your team.

Keep in mind—these sections are suggested, not required. If some of these sections don’t make sense for your business, feel free to drop them. Maybe you want to add something else? If you’re not sure where the heck to start—that’s where this list comes in handy. 

Why Do I Need a Real Estate Business Plan?

Honestly—you don’t have to have a business plan. If you’re feeling good about your business and happy with your growth, feel free to click away. But, if you’re not closing as many deals as you’d like or if you’re just not feeling great about your business’s direction, you might want to stick around. 

In addition to increasing your sales, an effective business plan can help you: 

• Gain a Competitive Advantage : The world is full of real estate professionals. To succeed in this industry, you need an edge. A real estate business plan gives you an advantage in the market because so few competitors will create one. You'll know the exact steps to take to grow your business. Case in point: a well-crafted business plan can boost your chances of success by 12 percent .
• Mitigate Risk: Every new business venture is a risky proposition. Back in 1994, nobody thought Jeff Bezos could sell books online. Now, Amazon is one of the biggest companies in the world, and Mr. Bezos has a cool net worth in the $150 billion range. While your real estate business plan might not help you hit the billion-dollar range, it will help you mitigate risk by helping you identify potential threats and weaknesses.  
• Gain a Deeper Understanding of Analytics: Drowning in data? A great business plan will outline your goals and campaigns, and help you track the metrics that really matter. You can look at your plan in a year and assess your progress toward your goals, and adjust your approach accordingly. This will help you eliminate poor tactics or destructive behaviors and double down on what works for your business.

A business real estate plan also gives you something to celebrate. When you hit the milestones in your plan, reward yourself with a fancy dinner or pop open a bottle of champagne. Treat yo’self. Then get back to selling! 

6 Steps to Create an Effective Real Estate Business Plan Fast 

Now you know what your real estate business plan should include and why they matter. Cool. Now it's time to actually create that killer plan that will help your business grow. Ready? Follow these step-by-step instructions to create a proven plan of action you can use to grow your business.

1. Start With Your Story

Who are you as a real estate professional? Are you a master of landing the right deal? Love helping families find their forever home? 

All good business plans start with a story that explains who the individual or company in question is, what they do, and the business goals they want to achieve.

To accomplish this, make sure your business plan includes:

• An executive summary: A sentence or two that summarizes what your business does.

Example: "I sell homes to middle-income buyers in the greater Denver area."

• Your mission statement: A few sentences that explain why you do what you do.

Example: "At Smith Real Estate Group, we strive to provide our clients with amazing experiences they'll remember for the rest of their lives. Buying a home is a monumental responsibility. Our goal is to make the process simple, fun, and stress-free for our clients so they're delighted with their purchases."

• Your vision for your business: A couple of sentences that illustrate what the world will look like once you've achieved your mission. 

Example: "Eventually, I want to be the most trusted name in Boise real estate, effectively serving a range of clients who come to me to get the highest possible price for their homes."

• The SMART goals you want to achieve: The individual objectives you'll work to accomplish, i.e., "Sell 15 homes next year," or "Make $150,000 annual salary." Remember, the best goals are SMART, which stands for specific, measurable, achievable, relevant, and time-bound. 

Example: "I'll start making $150k a year (or more) within 36 months. To accomplish this, I'll invest in new marketing techniques to promote my services so I can sell 15+ homes every year."

2. Research Your Target Market

Which area of the real estate market do you specialize in? Do you sell high end luxury condos? Help businesses find the right place to expand? Maybe you’re all about helping folks find tiny homes. 

To answer this question, I suggest a fair bit of research—especially if you're brand new and don't have an established client base. Look for sections of the market that are growing and ones that are slowing down.

It's important to look at data for the location you’re serving . Nation-wide trends are useful to a point. But you really need to know what's happening in your corner of the world.

Also, research your city's other agents, brokerages, etc., as you'll compete with them for potential clients. The more you know about them, the easier it will be to differentiate yourself and achieve your short and long-term goals in the real estate industry.

3. Identify Your Ideal Clientele

Now it's time to zero in on the specific people you sell to.

There are plenty of options. You could be a condo specialist and only engage new leads who want to buy condos in your area. Or focus on real estate listings for new home buyers. Or work in the top end of the market and help wealthy individuals settle into their second homes. You do you. 

The specific demographic you choose to serve should depend on the local market, your unique skill set, and your passions. Find a balance between these three things.

When you know your ideal clientele, take a moment to define buyer personas .

Not familiar with the term? Don’t worry—it's not as weird as it sounds. A buyer persona is a fictional person you invent to represent your real-world target market. Feel free to get weird with it—your persona could be Fred the Family Man, or Suzy the Soup Maker. Just be sure to include personal details, such as goals and pain points to make it useful. 

While it may seem silly, a buyer persona keeps you focused on your ideal clientele so you can ensure your marketing efforts always match the people who want to help. 

4. Perform a SWOT Analysis

A SWOT analysis helps you pinpoint your strengths and weaknesses and find the opportunities and threats in your chosen real estate market. Think of it like a battle plan to help you conquer your real estate market. Here's a quick example:

• Strengths: Maybe you have amazing people skills, so you host open houses for your clients on a regular basis. This helps you meet potential buyers and sell clients' homes. It also acts as a terrific lead generation strategy . Or, maybe you’re really, really good at staging older homes. 
• Weaknesses: Maybe you hate social media, so you never use platforms like Facebook and Instagram—even though other agents use them to close deals . This would be a weakness, but it doesn’t mean you need to change things. Instead, acknowledge it and adjust your strategy accordingly. 
• Opportunities: If most of the real estate professionals in your town focus on low- to mid-priced real estate listings, you could target the small collection of luxury buyers in the area.
• Threats: Are there a ton of other real estate agents in your area? Maybe a nationwide brokerage is opening a new office and threatening to take your knees out with a bat. (Who knew real estate could be so brutal!) The point is: being aware of threats helps you target your services effectively so you can become a real player in the game. 

5. Set a Clear Marketing Strategy

You might run the best real estate brokerage in the United States. But if nobody knows about your real estate team's supreme skill set, you’re not likely to make many sales. Which won’t be an issue if you’re running a mob front—but if you actually want to make a profit, marketing is crucial. 

Fortunately, you've defined your target market, ideal clientele, and personal strengths and weaknesses. So, building an effective marketing strategy should be easy. 

Think about your target audience: how can you reach these people? Social media is probably your best bet if you serve young, first-time homebuyers. If you serve an older, more affluent crowd, in-person meetups and cold-calling techniques might be a good option.

Consider your competitors, too. What channels do they use to connect with new leads? Use another approach to differentiate your services better.

Finally, take a hard look at your abilities. Just because a marketing plan works for one person or company doesn't mean it will work for yours. Since you're building your business, you need to assess your strengths and weaknesses. This will help you implement strategies that suit your skills and disposition.  

6. Make a Financial Plan

Yes, we gotta talk about money. Adding financial details to your real estate business plan gives you a strong starting point to drive growth. 

How much will you spend on licensing, lead generation, and a real estate CRM ? Remember to budget for everyday expenses while working, like gasoline for your car and meals while traveling. (Just no two martini lunches!) 

You should also include the amount of money you want to make after expenses and taxes and the number of deals you'll need to close to make the numbers work together.

Most people shy away from their finances. Don’t make this mistake. You need to know what your operating expenses are to know what your cash flow is. If you don't know that, you won't know if you're on track to reach your short-term or long-term goals.

One more thing: make sure your financial plan is realistic . Dreaming of million-dollar closings might feel nice, but those numbers won't help you. Do your research and input proper cost estimates. 

3 Tips to Create a Real Estate Business Plan That’s Actually Useful 

BOOM! Now, you know how to create a business plan for your real estate business. Go you. But to make sure your plan is top-notch, keep these three best practices in mind:

KISS: Keep it Super Simple

It’s easy to get lost in the weeds and wind up overwhelmed. Don't overcomplicate the process.

Your real estate business plan doesn't need to be professionally designed unless it’s being shared with business partners or investors. You can write it in Word on your laptop computer. Or scribble it on a napkin while you sip a cocktail at the bar. Whatever feels good to you. 

The most important thing is that you actually create a plan for your real estate business . The way it looks is less crucial. Don't get caught up in the details. 

Differentiate Yourself

What makes you special? No, not just in the “My mom says I'm special!” way. Like, what really makes you stand out from the other real estate agents and brokers in your local area?

Ask yourself questions like " What can I do better than everybody else?", “Why would clients want to work with me over another agent?” or "What am I willing to do that my competitors aren't?"

Did you come up with a few things? Good, now add them to your real estate business plan.

Being average is boring—so figure out where you stand out. Then, infuse it into every aspect of your business, from your website to how you engage with clients. That way, people know what sets you apart.

Revisit Your Plan Regularly

One more thing: your real estate business plan should be a living document. In other words, you should revisit it regularly to make sure it's actually benefiting your business.

Did you choose the right market? Are you serving the right clientele? Is your marketing plan actually working? Assess your business quarterly to see what's working and what isn't. Then use the takeaways to adjust your approach. That way, you can “always be closing” more deals. 

Pro tip: when starting out, use a business plan template . This gives you a starting point and makes it easy to edit your plans at any point. 

Level Up Your Real Estate Business 

If you want to build a successful real estate business, you need a plan. Luckily, you’ve already got one. 

Once you create your plan, you'll have a clear vision you can implement systematically to grow your business faster.  

Know what else will help you succeed in this industry? A solid CRM software with proven contact management, cold calling, email marketing, and sales reporting features.

Sound good? Give Close a try. We make it super easy to track leads, follow up with prospects, generate referrals, and turbocharge your real estate business.

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• Sample Business Plans
• Real Estate & Rentals

Real Estate Business Plan

People would always need to find places. Be it for offices, homes, and whatnot.

Finding the ideal place irrespective of your needs and requirements is never a cakewalk, to begin with.

You can go through a number of real estates business plan templates before you write your plan.

Industry Overview

The market size, measured by revenue, of the Real Estate Sales and brokerage industry, is $156.2bn in 2021, and the industry is expected to increase by 0.4% in 2021.

Also, the market is changing at a rapid rate and the way people use spaces is changing at a rapid rate too.

Hence, to get on or stay on the higher end of the spectrum you’ll need to upskill and change the way you do business constantly.

But that is a fair trade for the amount of growth and profitability this industry has to offer.

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Things to Consider Before Writing a Real Estate Business Plan

Be specific.

The real estate industry is broad when it comes to work and what you can do. It can either be a source of primary or passive income. At the same time, you might be involved in the industry as an investor, agent, or builder. Decide what you want to do and plan on that basis.

Do your research

The trends of the real estate business change constantly, hence doing your research and updating it constantly is a crucial part of your profession.

As your knowledge and expertise is your greatest asset in this industry, keep expanding it to stay at the top of things.

Build a team of skilled professionals

Having a team you can build your real estate business with is essential.

Select a group of individuals with a diverse set of talents ranging from good communication skills to brilliant analytical skills. Given the dynamics of the real estate business, you never know what skills might come in handy in your business journey.

Be ready for change

As we have constantly discussed, real estate is a dynamic industry. Change is the only constant you’ll have in this business.

Thus, it is important for everything from your plan and way of doing business to be change-friendly.

Sources of Funding for a Real Estate Business

Gaining funds is one of the major reasons for writing a business plan. And here are a few good funding options for your real estate business:

A traditional loan is one of the most basic options for getting funded. You can opt for this if you have a good credit score.

Non-bank mortgage lending

This is a good option if you don’t want to go through a lot of paperwork.

The asset-based mortgage

For this, the lenders look at the rental value of your property and provide a loan on that basis. It is a good option if you don’t want or can’t get a loan based on your personal assets or income.

Above all, it is essential to plan your business to figure out your funding requirements and the right way to fulfill the same.

Write Your Business Plan

If you have enough connections, and the ability to find places for people that have attributes they want and need then a real estate business can be a profitable one for you.

A business plan helps you get funded, explain your ideas to the stakeholders of your business, and make better decisions.

Hence, planning is an important aspect of starting or growing your business.

It has been created using Upmetrics online business plan software that helps you create dynamic and customizable plans anywhere and at any time.

Our sample real estate business plan can help you with writing a well-rounded business plan for your business. It can act as a guide and prevent you from getting stuck in a certain section for too long.

Real Estate Business Plan Outline

This is the standard real estate business plan outline which will cover all important sections that you should include in your business plan.

• Market Opportunity
• Demand for Housing
• Financing & Investment Forecast
• Introducing Kegan
• Business Model
• Short Term Goals
• Long Term Strategies
• Keys to Success
• Contemporary Living for the 21″ Century
• The Complete Package
• Pricing Strategy
• Implementation Strategy – Action Plan
• Target Market Overview
• Housing Shortage Overview in Saudi Arabia
• Housing Shortage Overview in Riyadh
• Housing Prices
• Kegan Home Prices
• Market Positioning & Brand
• Marketing Strategies
• Sales Strategies
• Sales Process
• Competitive Landscape
• Competitive Advantages
• Rashid Bin Said
• Director of Construction
• Member name
• Chief Accountant
• Director of Marketing & Sales
• Other Staff
• Independent Directors
• Solid Balance Sheet
• Impressive Cashflow
• Financial Summary
• Financial Assumptions
• Income Statement (Five-Year Projections)
• Balance Sheet (Five-Year Projections)
• Cash Flow Statement (Five-Year Projection)

After getting started with Upmetrics , you can copy this sample real estate business plan into your business plan and modify the required information and download your real estate business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample real estate business plan

Need help writing your business plan from scratch? Here you go;  download our free real estate business plan pdf  to start.

It’s a modern business plan template specifically designed for your real estate business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Real Estate Business Plan Template

Written by Dave Lavinsky

Real estate businesses come in a wide range of sizes and styles, from one person offices that handle a few homes in a handful of neighborhoods to enormous chains that cover both commercial and residential properties across the country. Many new real estate agents try to expand too much too soon, failing as the result of unsustainable growth. A written business plan will keep you on track and help you grow your real estate business in an organized way. In addition, if you plan to seek funding, investors and lenders will use your business plan to determine the level of risk.

Download our Ultimate Real Estate Business Plan Template here >

What is a Real Estate Business Plan?

Your business plan provides a snapshot of your real estate company as it currently exists, and lays out a road map for the next three to five years. It highlights your business goals, identifies potential challenges, and describes your strategies for overcoming adversity and meeting your goals. It is a living document that should be frequently updated as your real estate business grows and evolves.

Below is our general template for real estate business plans. We also have templates for specific types of real estate businesses as follows:

• Property Management Business Plan Template
• Real Estate Agent Business Plan
• Real Estate Development Business Plan
• Real Estate Investment Business Plan
• Rental Properties Business Plan

Why You Need a Business Plan Real Estate Business

If you’re looking to start a real estate business or grow your existing real estate business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your real estate company in order to improve your chances of success. Your real estate business plan is a living document that should be updated annually as your company grows and changes.

Finish Your Business Plan Today!

General real estate business plan template.

Below is a template that will help you with how to write a real estate business plan. The plan should include the following 10 sections:

Executive Summary

Although it serves as the introduction to your business plan, your executive summary should be written last. The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of real estate business you are operating and the status. For example, are you a startup, do you have real estate agent business that you would like to grow, or are you operating a chain of real estate businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the real estate industry. Discuss the type of real estate business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of real estate business you are operating. For example, are you an existing real estate agent looking to launch your own company or are you an existing real estate brokerage looking to expand?

Describe the company’s founding, current stage of business, and legal structure. Highlight any past milestones, such as lining up key clients or hiring an agent with a proven track record. Elaborate on your unique qualifications, such as expertise in a currently underserved niche market and include a mission statement, if possible. Include your mission statement, key objectives and business goals.

Industry Analysis

In your industry analysis, you need to provide an overview of the real estate market. The real estate industry is incredibly large and diverse, but your analysis should focus on your specific segment of the market. Do you specialize in multifamily residential buildings? Single family homes? Office buildings? Small commercial properties? Figure out where your real estate company fits in, and then research the current trends and market projections that affect your niche. Create a detailed strategy for overcoming any obstacles that you uncover.

The following questions should be answered in the industry analysis section of your real estate business plan:

• How big is the real estate market (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your real estate business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

Who are your potential clients? Are they first-time homebuyers? Upwardly mobile young professionals? Developers, speculators, or investors? What is important to them in a real estate agent? Do they require hand holding through the entire process, or are they savvy buyers that just want you to show them the properties that interest them? How do they decide on a particular property? Narrow down their demographics as closely as you can, and then figure out what their unique needs are and how you can fulfill them.

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Competitive Analysis

Your direct competitors are those real estate companies that fulfill the same needs for the same target market as yours. Your indirect competitors are real estate businesses that target a different market, or other companies that fulfill a different need for your target market. Describe each of your direct competitors individually, and talk about the things that set your real estate company apart. Categorize your indirect competitors as a group and talk about them as a whole.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses in a SWOT analysis. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:  

Marketing Plan

A solid marketing plan is based on the four P’s: Product, Price, Promotion, and Place. Your marketing efforts should center around these four marketing strategies. The Product section describes the real estate you sell along with any other services you provide. Price will change according to the specifics of the property, but you can delineate your fees here. Promotion is your means of getting new business. Place is your physical office location, along with your web presence and the areas where you sell. Another category, Customer retention, refers to the ways you will build loyalty.

Employing a marketing strategy based on these four principles will allow you to generate leads for prospective clients.

Operations Plan

Your operations plan explains your methods for meeting the goals you set forth. Everyday short-term processes include all of the daily tasks involved in signing up clients, showing properties, and closing sales. Long-term processes are the ways you will meet your defined business goals, such as expanding into new markets or new types of properties.  

Management Team

The management team section highlights the backgrounds of the key members of your real estate team. Focus on those aspects that prove your team’s ability to build and run a successful company. A business mentor or advisor can help fill in any gaps, provided you can identify the specific ways that your advisor will influence your company’s growth. Be sure to highlight how many real estate agents will be on your team.  

Financial Plan

Investors and lenders heavily scrutinize the financial plan, but it is often the most challenging part of the business plan to write. Real estate is a fickle market, subject to changing whims and economic cycles. Yet the financial plan requires you to detail your specific business model and individual revenue streams by implementation timeline and relative importance, and disclose any sources of outside funding. You also need to summarize your past and future Income Statements, Cash Flow Statements, and Balance Sheets, based on key assumptions that must be both reasonable and verifiable based on an analysis of similar companies. You should also provide a solid exit strategy that shows your understanding of the market and your desire to capitalize on profitability.  

Your full financial projections should be attached in the appendix along with any other documents that support your claims, such as letters from key partners.  

Real Estate Business Plan Summary

Putting together a business plan for your real estate business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the real estate industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful real estate business.

Download Our Real Estate Business Plan PDF

You can download our real estate business plan PDF here . This is a business plan template you can use in PDF format.

Real Estate Business Plan FAQs

What is the easiest way to complete my real estate business plan.

Growthink's Ultimate Real Estate Business Plan Template allows you to quickly and easily complete your Real Estate Business Plan.

Where Can I Download a Free Real Estate Business Plan PDF?

You can download our real estate business plan PDF template here . This is a business plan template you can use in PDF format.

This can be used for a commercial real estate business plan too.

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan writer can create your business plan for you.

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How To Start A Real Estate Business In 10 Steps [Updated 2024]

What Is A Real Estate Business?

Top 5 benefits of a real estate business, types of real estate businesses, 10 steps to start a real estate business, common mistakes to avoid, is real estate a profitable business.

Are you considering diving into the world of real estate in 2024? If so, understanding how to start and successfully manage a real estate business is crucial. This comprehensive guide is designed to walk you through the process, whether you’re a beginner or a seasoned investor looking to expand your portfolio. Real estate business opportunities are abundant and can offer substantial financial rewards if approached correctly. In this article, we’ll explore the foundational steps you need to take to build a thriving real estate business in today’s market.

At its core, a real estate business involves purchasing, managing, and selling real estate properties for profit. This can include residential homes, commercial properties, and even land. A successful real estate business doesn’t just focus on buying and selling; it encompasses market analysis, investment strategies, property management, and customer relations. The diversity in the real estate business model allows for various approaches, whether you’re interested in long-term rental income, flipping houses, or developing properties from the ground up.

Steady Income Stream: One of the most attractive aspects of a real estate business is the potential for a consistent and steady income, primarily through rentals. This can provide financial stability and a cushion against market fluctuations.

Property Value Appreciation: Over time, real estate typically appreciates in value. This long-term appreciation can result in significant profit when properties are sold.

Tax Advantages: Real estate investors benefit from various tax deductions, including depreciation, mortgage interest, and property tax deductions, which can significantly reduce tax liability.

Diversification of Investment Portfolio: Investing in real estate is an excellent way to diversify your investment portfolio , reducing risk and improving overall financial health.

Inflation Hedging: Real estate is often considered a hedge against inflation. As living costs rise, so do rental incomes and property values, helping to protect your purchasing power.

Understanding the different types of real estate businesses is essential for anyone looking to enter this field. Each type offers unique opportunities and challenges, and choosing the right path can significantly impact your success in the real estate business. Let’s explore some of the most common types:

Real Estate Wholesaler: Real estate wholesaling involves finding and contracting undervalued properties and then selling those contracts to potential buyers, usually other investors. Wholesalers profit from the difference between the contracted price and the sale price. This type doesn’t typically require significant capital, making it an attractive entry point for many newcomers to the real estate business.

Real Estate Flipper: Flipping properties is a well-known real estate business model. It involves purchasing properties, often in need of repairs or renovation, and then selling them at a higher price for a profit. This type requires a keen eye for potential, knowledge of renovation costs, and the ability to act quickly in competitive markets.

Buy and Hold: This long-term investment strategy involves purchasing properties and holding onto them for a considerable period. Investors typically earn money through rental income during the hold period, with the potential for significant capital gains when the property is eventually sold. This type of real estate business is often praised for its potential to generate passive income.

Real Estate Developer: Developers take on larger projects, often involving the purchase of land and the construction or significant renovation of buildings. This type of real estate business can be highly lucrative but also involves more significant risks and requires substantial capital and expertise in project management, construction, and market analysis.

Real Estate Agent: Real estate agents facilitate the buying and selling of properties for clients, earning a commission on the transactions. This role requires strong interpersonal skills, a thorough understanding of the real estate market, and often, a license to practice.

1. Market Research and Niche Selection

The first step in starting a real estate business is conducting thorough market research. This involves understanding the latest trends, identifying potential niches, and analyzing demographic data to determine where the best opportunities lie. Whether your interest lies in commercial real estate, residential properties, or a specific type of investment like fixer-uppers, choosing the right niche is crucial. It’s about understanding where you can add the most value and what type of real estate business aligns with your skills and resources.

2. Crafting a Comprehensive Business Plan

A detailed business plan is your blueprint for success. It should outline your business goals, target market, financial projections, marketing strategy, and operational plans. This plan will not only guide your initial steps but also help attract investors or secure financing. It should be a living document, adaptable to changes in the market or your business.

3. Legal Setup and Compliance

Setting up your business legally is critical. This includes selecting the right business structure, such as an LLC or corporation, which can impact your taxes and liability. Ensure that you obtain all necessary licenses and permits and understand the real estate laws and regulations in your area. Compliance is key to building a sustainable and reputable real estate business.

4. Financing Your Business

Securing the necessary funding is one of the most challenging aspects of starting a real estate business. This may involve tapping into personal savings, obtaining a bank loan, or finding investors. Understanding your financial needs and options is essential, as is a solid budgeting plan that accounts for both expected and unexpected expenses.

5. Building Your Brand and Online Presence

In today’s digital age, having a strong brand and online presence is crucial. This involves creating a professional website, engaging in social media marketing, and possibly running online advertisements. Your brand should reflect the values and mission of your real estate business, and your online presence should make it easy for potential clients and partners to find and interact with you.

6. Networking and Relationship Building

The real estate industry is built on relationships. Networking with other real estate professionals, potential clients, and investors is essential. Attend industry events, join real estate forums, and consider partnering with other businesses. Building strong relationships can lead to new opportunities and referrals.

7. Property Acquisition

Acquiring the right properties is the heart of your real estate business. This involves not just finding properties but also assessing their potential for profit, whether through rental income, resale, or development. It requires a good understanding of the market, negotiation skills, and an eye for properties that offer good value.

8. Effective Marketing and Sales Techniques

Marketing your properties effectively is key to your success. This could involve a variety of strategies, from digital marketing campaigns to traditional advertising and hosting open houses. Understanding your target audience and how to reach them is crucial. Sales skills are also important, as you’ll need to negotiate deals and close sales effectively.

9. Managing Properties and Client Relations

If your real estate business involves property management, doing this efficiently is essential. This includes regular maintenance, dealing with tenants, and ensuring a steady income flow from your properties. Good client relations are also crucial; satisfied clients are more likely to provide repeat business and referrals.

10. Growth and Expansion

Lastly, consider how you’ll grow and expand your real estate business. This could involve diversifying into different types of real estate, expanding into new geographic areas, or scaling up your investments. Continuous learning and adapting to market changes are vital for long-term success.

Overlooking Market Research: Failing to conduct thorough market research can lead to poor investment decisions. Understanding the market is key to identifying profitable opportunities.

Neglecting Legal and Tax Aspects: Ignoring the legal and tax implications of real estate transactions can lead to significant issues. Ensure compliance and take advantage of available tax benefits.

Poor Property Management: Ineffective property management can result in high vacancy rates and low profitability. Effective management is vital for maintaining property value and income.

Failing to Plan for Scaling: . Without a clear plan for growth, expanding your real estate business can be challenging. Strategic planning helps in scaling your business successfully.

Real estate has traditionally been viewed as a highly profitable venture. It offers various pathways to profitability, whether through long-term rental income, short-term property flipping, or large-scale development projects. However, success in the real estate business requires strategic planning, market understanding, and the ability to adapt to changing market conditions.

Starting a real estate business in 2024 offers exciting opportunities for both novice and seasoned investors. By following these 10 steps, understanding the potential for profit, and avoiding common pitfalls, you can build a successful and sustainable real estate business. Remember, the key to success in real estate lies in thorough planning, continuous learning, and adaptability to market changes.

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Blog Real Estate Best Practices 12 Easy Steps to Creating a Perfect Real Estate Business Plan (2024 Updated!)

12 Easy Steps to Creating a Perfect Real Estate Business Plan (2024 Updated!)

To be truly successful in the world of business, you must create a solid business plan. This is the case no matter what industry you are in, and that includes real estate.

The business plan you work out must be unique. There is no cookie cutter approach. You must keep your brand image and goals in mind when creating the plan that’s perfect for you.

However, there are a few steps you can take to ensure your plan is well executed. This article will review those steps to ensure you plan is as successful as possible.

Why Create a Real Estate Business Plan?

A real estate business plan offers several benefits including the following:

• It shows you where your business is at and outlines areas where you can make improvements.
• It allows you to set goals and track progress.
• It can be used to help secure funding. Most potential investors will want to see a copy of your business plan before moving forward.
• It can be a selling point for attracting top talent.
• It provides an outline that will help you manage day to day tasks in an organized fashion.
• It can help you track your marketing efforts.
• It can help you attract clients.
• It will keep you more organized in reaching your long-term goals.

12 Steps to Create The Best Real Estate Business Plan

1. determine your business model.

There are a few ways to go when embarking on your real estate journey. You may decide you want to start or join a real estate team. Or you may decide you want to start or join a brokerage. You’ll want to decide if you need a sole proprietorship or an LLC is in your best interest. You may establish a plan early on in your career, or you may decide to change directions and create a new plan in the middle of your career.

While these are all very different paths to take, there are common elements that will need to be focused on in the plan creation process. They will be outlined in the following sections.

2. Identify Who You Are

Determining your brand identity will help you create marketing materials that reflect your image. Are you a friendly ‘people person’? Or is your main goal finding clients the best investment for their money?

Your strategies will change slightly depending on your business model. If you own or work in a team setting , you must define the role of each team member and their part in helping you reach your goals.

If you own a brokerage, your real estate business plan will help you determine what type of agents you want working for you. If you work on your own , it will all come down to your unique vision.

When putting it down on paper, your identity will consist of:

• Your Mission Statement: Your reason for being in real estate
• Your Executive Summary: One or two sentences that summarize what you do

3. Analyze Your Target Real Estate Market

Once you determine who you are as an agent, you will have a better idea of who you are marketing to. You may be targeting business owners, investors, families, luxury clients and so on. It’s also likely you will be working within a specific area.

After identifying your target audience, you need to figure out how your target market is doing. What are home prices like? How is inventory looking? Is it a buyer’s or seller’s market? And what are future predictions?

You will be able to glean this information by looking carefully at the MLS and staying on top of trends. Online and offline real estate resources will also provide some insight.

In general, you will want to stay on top of:

• General Trends including how long homes are staying on the market on average, commission rates, sale prices, etc.
• Market Opportunities based on supply and demand
• Market Saturations based on inventory and agent services

4. Analyze Your Competition

We all know the saying, ‘keep your friends close and your enemies closer’. Stay on top of what other agents are doing by subscribing to their newsletters and following their social media pages. While you won’t want to copy their strategies outright, they may just inspire you to create a marketing plan that gives you a competitive edge.

You should also look out for underserved niches and competitive saturation.

When it comes to underserved niches, there may be plenty of agents in your area specializing in family residential properties. But how many are serving the commercial sector? Or the luxury sector?

If the city sections in your area are blowing up, consider looking into properties in a nearby suburb to avoid competitive saturation.

5. Decide What Services You Will Provide

Most real estate agents provide the expected services such as conducting open houses, finding homes for buyers, determining pricing, negotiations, and keeping transactions organized in general.

But you can offer additional services that set your business apart. For example, you may provide:

• Staging: Staging involves setting up the home, so it looks more aesthetically appealing. Once upon a time, staging was offered as an addition service. But today, many agents are rolling it into their agent fees. The agent may stage the home themselves, or they may bring in a specialized team for staging.
• Professional Virtual Tours: Today, virtual real estate tours are the way to go. They allow clients to get the experience of being in the home without having to leave their home. If you are not offering this service, it’s time to get onboard.
• Neighborhood Analysis: Most agents provide clients with an overview of what a neighborhood has to offer. But if you want to go that extra mile, you can provide an in-depth report that includes crime rate, types of properties, demographics, and more.
• Relevant Discounts: Agents can offer clients relevant discounts in terms of handyman services, inspections, appraisals and more.

6. Carve Out a Niche

It’s important to carve out a niche in terms of what type of property you want to sell and who your target audience is. But you can get even more ‘niche-y’ by specializing in certain types of properties such as condos and townhouses, catering to first time buyers and so on.

It may seem like carving out a niche is limiting, but it will make people come to you first when they require expertise in your field. When choosing a niche, base it on what you are most skilled at and where you see an opportunity to grow professionally.

7. Create a Marketing Plan

The first step of your marketing plan will involve identifying your target audience and determining the best way to reach them. For example, if you are focused on first time buyers, you will be targeting a millennial crowd. In addition to emphasizing money saving goals, you may also want to advertise yourself as an agent that is environmentally friendly and gives back.

A luxury crowd may have similar concerns, but their main interests will be in finding high end properties that offer the utmost in amenities.

You must also consider the best way to reach your target audience. What social media platforms are they likely to be on? Do you think they will respond well to cold calls , door knockings , and mailings? Or is it best to keep things digital?

You must also consider race, color, origin, sexual orientations, and disabilities. Create marketing materials that are appealing and will not discriminate in any way.

8. Conduct a SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

In terms of strengths and weaknesses, you must consider what you are best at and what could use improving. For example, you may find that you have superior digital skills but that you’re not so great with cold calling. If this is the case, you should focus on digital and avoid cold calls.

However, you may also consider improving weak spots. For example, if it was the other way around and digital was a weakness, you should consider building up your digital skills. This will give you a competitive advantage in today’s world of real estate.

It’s also important to be aware of opportunities and know when to pounce. This will help a lot with lead generation. For example, FSBO, near pre-foreclosure, and divorces are all ideal situations for an agent to come knocking. You may also think of opportunities in terms of underserved areas and niches in your community.

Threats can come in the form of competition and/or changes in the market. There is usually no way to keep these threats from happening, but you can take steps to be prepared when they occur. This will ensure you are in the best shape possible for taking them on and minimizing potential damage.

9. Focus on Your Specific Goals

• Making a certain amount of money in a given time
• Completing a certain number of transactions in a given time
• Attaining a certain number of new clients in a given time
• Reducing lead time
• Growing your company by hiring new agents and employees or opening new locations
• Determining a better work/life balance

When you set up your goals, it’s important to make them measurable and attainable. If your goals aren’t attainable, you will end up wasting time working towards goals you will never reach. You will also become frustrated by your lack of progress.

Measuring goals can be challenging. In today’s digital world, reports and analysis are provided so you can determine your ROI and figure out what’s working and what isn’t. If you are outside of the digital realm, it may be more difficult to measure your progress, but you should have some idea of how well you are doing.

10. Keep Track of Your Finances

No matter how passionate you are about your business, it won’t be a success unless you are making money. You must keep track of how much you are spending and how much you are earning. Your net profits should always be positive.

For best results, implement an online system like QuickBooks. Online bookkeeping systems will provide reports so you can see where most of your money is being spent and your main sources of income. This will help you determine what’s bringing in the most ROI, what’s generating income, and what’s not.

You may also consider hiring an accountant and/or a financial consult. Your financial team will ensure you are making smart moves at tax time and when investing in tools, software, and other business ventures.

11. Review Your Success Ratios

Your success will also be contingent on customer satisfaction. Are your customers pleased with your services? Are they referring friends and family?

If your success ratios are looking good but your finances aren’t matching up, you may be overspending on certain aspects of your business. Look at your records to see where the bulk of your money is going. Cut back if necessary.

12. Revisit Your Real Estate Business Plan Regularly

Your business plan is not set in stone. It’s a good idea to check it on a regular basis so you can revise it in accordance with your current needs. You may also want to create a new business plan if you decide to change up your business model.

A real estate business plan is a valuable tool for agents. It will keep you on course in attaining your goals. This template will help you devise a plan that is best suited to your professional needs. We wish you the best of luck in moving your company forward.

You’re a successful real estate agent, but you’d like to step to the next level. To do that, you want to create a better business plan for next year. So, how do you start? By filling out that form your manager gave you, asking for your goals for next year? Or, maybe you’re attending those trainings where seminar gurus give you 30 things to do next year. That will put you in a quandary because you don’t know how to choose! Please don’t leap to either one. Before you commit, take a look back at your last year (In the strategic planning process, it’s called the ‘ business review’.) Using the same thought process successful businesses use to create effective business plans will give you clarity.

Time To Scope Your Business Plan: Small Adjustments Pay Big Dividends

You and your business are unique.

Don’t copy someone else’s plan or commit to pie in the sky numbers until you know your three business indicators here. Armed with that information, you can pick and choose your actions and goals wisely, because you know they will work for you.

Building Your Business Best: From working with agents in my business planning courses and systems, I’ve observed that many agents don’t build a business plan around their best source of business: ‘sold’ customers and clients. Marketing surveys show that it costs six to nine times as much to get a new customer as to keep an old one. So, if you spend more money on your best source, and less on your other sources, you’ll optimize your investment.

3. How ‘delighted’ are your clients? Most so-called ‘business plans’ in real estate merely are goal-setting grids. Focusing only on the end results suggests that the ends justify the means. However, the consumer sure doesn’t think so! These goal setting grids alone lead agents to miss the point of the decade: Top-flight customer service begets more business. That is, it’s not just what you do, but how you do it. What level of service are you providing? Is it just good enough to get through the transaction? Or, is it so great that your clients are thoroughly delighted ? (Delighted consumers refer business to you–less cost and more effort equals big pay-offs, right?)

Build Delight into your Business Plan

Don’t Worry About the Tactics

If you’ve been gathering those dozens of tactics seminar gurus have suggested you MUST do, your head is probably spinning. That’s not the way to go about creating an effective business plan. Instead, take time to use the strategic planning process, which includes your business review. Commit one hour out of your day now to assess the three areas here and plan adjustments. The bonus: With your answers, you can pick from that myriad of action plans you’ve gathered and choose the ones that support your major goals. Now you have the ‘why’ for your plan, and you’ll be inspired to create and implement your unique business plan.

About the Author

Chris Heller brings 27 years of experience in real estate. Chris serves on the AgentAdvice Editorial Board and is the Chief Real Estate Officer at OJO Labs. Chris brings deep expertise having held influential industry positions including CEO of mellohome and former CEO of Keller Williams Realty International.

Last Updated: 12/29/2023

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How to Create a Dynamic Real Estate Business Plan

by Billy Epperhart | Mar 19, 2024 | How to Begin Real Estate Investing , Real Estate , Real Estate Financing , Strategies for Real Estate Investing | 1 comment

Great real estate investors treat their portfolios like a business. They build a team, have a keen understanding of their profit and loss statements, and take the time to create a strategic real estate business plan. This last component is essential– it will help you go farther and faster in the right direction. However, did you know that most new entrepreneurs spend more time planning a week-long vacation than creating a business plan?

In this blog, we are sharing nine essential components of creating a dynamic real estate business plan. The beauty of this is that you can create a plan at any stage of your investing journey. Whether you’re waiting to get into your first property or have a dozen doors, a plan will position you from the dreaming phase into the doing phase. So, let’s get started! 

What Is A Real Estate Investing Business Plan?

Like any business plan, a real estate business plan is a document that provides the framework for a business’s operations and goals. A business includes current operations, future goals for the company, and organized steps to get there. 

To get started, it’s wise to plan for one to five years at a time. Your real estate investing business plan is a living document, so you should always change it to fit your needs!  

4. Determine Your Business Strategy (and Exit Strategies)

With your goals and financial metrics in place, it’s time to define your business strategy. Will you focus on long-term buy-and-hold properties, pursue fix-and-flip opportunities, or engage in wholesale transactions? Each strategy comes with its own set of advantages and challenges, so choose the approach that aligns with your expertise, resources, and risk tolerance. Additionally, consider your exit strategies for each investment, whether it’s selling for a profit, refinancing to extract equity, or holding for long-term appreciation.

5. Build Your Team 

Real estate investing is a team sport, and assembling the right team can make all the difference in your success. Identify key professionals who will support your investment strategy. Typically, every team needs:

• A realtor (who invests in real estate)
• A mortgage broker or lender (that invests in real estate themselves)
• A contractor 
• A banker at a local bank
• A property manager
• An insurance agent 
• An Accountant
• An Attorney (Who is familiar with real estate transactions.)

6. Form an Entity

As our friend and real estate attorney, Bill Bronchick, always says, “It’s not about how much money you make; it’s about how much money you get to keep.” Forming the right type of entity for your real estate business will give you legal protection and maximize tax benefits. 

In this part of your business plan, you’ll want to decide if you want to work with a partner. To learn more about this part of your real estate business plan, check out this episode of The WealthBuilders Podcast: Asset Protection: How to Set Up Your Real Estate Entity.

7. Plan on Building & Establishing Credit

In real estate investing, access to capital is essential for growth and expansion. Building and establishing credit can provide you with the financial leverage needed to pursue lucrative investment opportunities. Maintain a strong credit profile by managing your debts responsibly, making timely payments, and keeping your credit utilization below 30 percent. Explore options such as business lines of credit, home equity lines of credit (HELOCs), and commercial loans to finance your real estate ventures and fuel your business growth.

8. Review Quarterly and Update Regularly

A real estate business plan is not a static document; it’s a dynamic tool that requires regular review and updating. Schedule quarterly reviews to assess your progress, evaluate market conditions, and adjust your strategies and goals accordingly. Stay informed about industry trends, regulatory changes, and economic developments that may impact your investments, and be prepared to pivot and adapt as needed to maximize your success.

9. Ask for Input from Coaches or Others 

Proverbs 11:14 says, “Where there is no guidance, a people falls, but in an abundance of counselors there is safety.” As you advance on your real estate investing journey, surrounding yourself with expert guidance is crucial. By learning from others’ mistakes, you can save yourself from losing a lot of money! 

So, at WealthBuilders, we provide ample opportunities to surround yourself with expert investors and wise guidance. The first is our Real Estate Coaching Program, which you can learn more about here. Secondly, our upcoming Real Estate Workshop is in Denver, Colorado, or online via livestream. Click here to learn more about this dynamic event, coming to you April 5 – 7th, 2024! 

Hello,..just wanted to thank you for showing me that there is a good chance of being my own boss..and real estate will work for me as a mother who needs to spend time with my family but have a side business that multiplies..Thank you for the blog..BLESSINGS

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7 Important Tips That Help You Understand How to Create a Real Estate Business Plan

Gary Farris

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Before construction begins on a home, a solid architectural plan is laid out to guide the construction team. Your real estate business should start the same way. A real estate business plan may seem daunting to create, but it is critical to developing a strong, sustainable business. When done correctly, a real estate business plan can help you define and measure your goals and keep you focused on growing your business.

What are Real Estate Business Plans in essence?

Think of your business plan as a blueprint for success. What are your goals? What steps will you take to accomplish those goals? How will you measure success? When developing your real estate business plan, be sure to include these seven key components.

Step 1. Develop your real estate mission statement

Your real estate mission statement is quite simple. It answers the question: “What do I do?” It should clearly define your purpose and include your specific value proposition or the benefit you provide.

Step 2. Complete a SWOT analysis

SWOT is a standard acronym used for business plan building. It stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an assessment of yourself as a real estate agent and the landscape of the industry where you practice. Knowing who you are up against, and how you are better (or worse) than those you will be competing with, will help you to set strong goals for seizing opportunities, boosting your strengths, and improving your weaknesses.

Step 3. Set specific goals

What do you want to achieve in your real estate career? Do you want to make $6,000 a month? Write that down. Do you want to sell 12 properties each quarter? Write that down. Your goals may change down the road, but that’s okay. Consider both your short-term and long-term goals. Separate your real estate business goals in these two categories to ensure that your short-term goals feed your long-term ones.

FREE DOWNLAOD: How do you find the right brokerage as a new real estate agent?

Step 4. Develop a strategic plan

What strategies will you put in place to achieve your specific goals? Be as specific as possible, and don’t worry if you’re not sure how you’ll execute. Your real estate business plan should be a living document, changing as your business and your abilities grow. For example, maybe you want to attend two real estate conferences a year, but you’re not sure you can afford it. Write it down anyway. This is where you map out your biggest and best ideas.

Step 5. Consider your time frame

What is your time frame to achieve each of these real estate business goals? Do you want to set up your real estate website in the next two months? Grow your sphere of influence by 50 contacts in the next three weeks? Obtain your broker’s license by the end of year three? Adding a time frame to your goals and strategies will help you stay accountable and focused on achieving specific goals within a certain time frame.

Step 6. Define your target audience

What type of properties will you buy and sell? Commercial ? Residential? Who will be your target customers? Luxury home buyers? Families relocating to the area?

Defining your audience and your market, and considering your market along with your goals, will help you target your strategies. If you’re unsure whether a particular strategy will help you meet your goals, you can take a look back at your real estate business plan. Reevaluate the relationship between strategy and goals, then make the proper adjustments.

Step 7. Determine your systems and processes

Determine specific systems and processes that you plan on using to achieve your real estate business goals. Keep track of systems that you may want to grow into. For example: Will you use a CRM system for keeping track of clients and their needs? Do you have specific marketing programs that you plan to use?

How to write an action-oriented business plan for real estate agents

Make sure that your real estate business plan is results-driven. Each step should require action from you, and you have to be disciplined enough to perform those actions. Otherwise, you just have a piece of paper sitting in a drawer. It’s up to you to drive your success. Take some of these pointers or take all of them, but always take the time to evaluate your real estate business goals and how you plan to achieve them.

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The housing market is more competitive than ever. And buying a house is turning into a complicated and frustrating process. There’s opportunities to provide better traditional real estate services, or disrupt the market altogether with a real estate startup.

Whatever your real estate business idea is, you’ll need a business plan to make it a reality. To make it easy, start by downloading one of our Real Estate Sample Plans to help guide your own planning process.

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China Has a Plan for Its Housing Crisis. Here’s Why It’s Not Enough.

A new approach by China’s top leaders is bold but pales against the problem: a vast number of empty apartments no one wants to buy.

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By Alexandra Stevenson

Reporting from Hong Kong

China has a housing problem. A very big one. It has nearly four million apartments that no one wants to buy, a combined expanse of unwanted living space roughly the area of Philadelphia.

Xi Jinping, the country’s leader, and his deputies have called on the government to buy them.

The plan, announced last week, is the boldest move yet by Beijing to stop the tailspin of a housing crisis that threatens one of the world’s biggest economies. It was also not nearly enough.

China has a bigger problem lurking behind all those empty apartments: even more homes that developers already sold but have not finished building. By one conservative estimate, that figure is around 10 million apartments.

The scale of China’s real estate boom was breathtaking. The extent of its unrelenting bust, which began nearly four years ago, remains vast and unclear.

China’s leaders were already managing a slowdown after three decades of double-digit growth before the housing crisis created a downturn that is spiraling out of their control. Few experts believe that Beijing can transition to more sustainable growth without confronting all those empty apartments and the developers that overextended to build them. All told, trillions of dollars are owed to builders, painters, real estate agents, small companies and banks around the country.

After decades of promoting the biggest real estate boom the world has ever seen, and allowing it to become nearly one-third of China’s economic growth, Beijing stepped in suddenly in 2020 to cut off the easy money that fueled the expansion, setting off a chain of bankruptcies that shocked a nation of home buyers.

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The Ultimate Beginner’s Guide to Flipping Houses

In the Ultimate Beginner's Guide to Flipping Houses, we cover all the basics to help you get started in the real estate investment world. From how to choose a property, to finding a loan and insurance, to building the perfect team, this article has it all. Investing in a house to flip is a big decision and you need to be armed with as much knowledge as possible.

Hi and welcome to the Ultimate Beginner's Guide to Flipping Houses! In this article, we are going to cover the basics of flipping houses. From what flipping houses is, to finding the perfect house, how to budget, how to make a profit, and what you can expect along the crazy journey that is house flipping, we've got you covered. If you are interested in getting into real estate investing but are a little wary of house flipping, check out our guide on Buying Rental Properties. Rental properties are a great way to get your feet wet in real estate investment and can be slightly less risky than house flipping.

JUMP TO SECTION

• Introduction
• What is Flipping Houses?
• First Steps for Flipping Houses
• Setting a Budget
• The ARV Model and Why It's Important
• What to Look for When Searching for a House to Flip
• House-Flipping Loans: How to Get One
• After You Buy: What to Expect When Flipping a House for the First Time
• A Note on Insurance and House Flipping
• How to Build Your House Flipping Team
• A Word About Contracts
• How to Sell a Flipped House
• How Much Can I Make Flipping Houses
• Top 20 States for House Flipping in the US

Glad you asked. Flipping houses is when you take an older or not updated home and bring it back to life. Essentially, it is taking a house that is a little run down or has an awkward layout or just needs some TLC and making it a place you would want your family to live. The business of flipping a house is to buy a house at a low cost and then to sell it for a profit. The key to success for house flipping is speed. The sooner you can sell the house for a profit, the better. Now that we're familiar with what flipping houses is, let's talk about how to do it.

The number one rule of flipping houses is to have a plan. You need to see the entire process through and plan out each step before you invest in a home. Do your research, talk to experts, practice your skills in negotiating, carpentry, plumbing, etc. and then practice them again. According to experienced flipper Ben Mizes, "the worst way to learn how to flip houses is by losing 100K on a flip". So plan ahead, plan well, and protect yourself.

To give you an idea of how the process works, there are a few steps you will always take when flipping any house. We laid out a brief overview of those steps to help you visualize the entire house flipping process. Seeing everything involved in the process should help you feel more confident about knowing what to expect and starting to lay out your plan of attack:

Step 1. Set a budget

Step 2. Secure funds to afford the house flipping process (more on this in a bit)

Step 3. Find a house that you feel is a practical and within your budget

Step 4. Plan the updates and changes you want to make to the house

Step 5. Begin renovation and redesign of the house

Step 6. Stage the home (internally and externally) and put it on the market

One of the biggest challenges of flipping homes is finding great deals. But DealMachine makes your house hunt so much easier! DealMachine's real estate software helps investors find and research distressed homes (think: pre-foreclosures, foreclosures, short sales, etc), and get in touch with owners fast via batch skip tracing and direct mail campaigns. DealMachine's driving for dollars app is fast and easy to use: Once you've spotted a great deal, you can send the owner direct mail through the app in just seconds (no post office visits required!). 💸 Sign up for a 7-day free trial with DealMachine! Get $15 in free marketing credits using promo code: LISTWITHCLEVER

Besides moving quickly, setting a budget (and sticking to it!) is the most important step for flipping a house. You need to acquire funds and then ensure that every decision you make going forward keeps you within your budget. Staying within your allotted budget will help you make a profit when you sell the home and ensure you don't have to dip into your savings or personal funds to supplement.

When setting a budget, you should aim to make between 10% and 20% in profit when you sell the home. To help you determine a budget for each project, take a look at how much homes in pique condition sell for in the same area.

Although you likely won't be paying the loan on the house off for 15 or 30 years, it can still help to think in terms of how much house you can afford. Read 5 FAQs about Home Financing to get a better understanding of how to budget for a home in general.

If you are new to the home buying process, take a look at our article on 10 Thing to Know Before You Buy to get some more details on what exactly you need to know before pulling the trigger.

In real estate, especially investment real estate, you need to know about the ARV model. ARV stands for After Repair Value, which is the estimated value of the property after it has been fully renovated. This is the number you need to have in mind when you first set your budget. It is important to consider the ARV number so that you can build in enough extra padding in your budget in case something goes wrong. If you do not build in enough padding, you could end up losing money.

Within the ARV model is the 70% rule. This states that an investor should pay  only 70% of the ARV of a property minus the repairs needed. The 70% rule will help you determine how much you should pay for a property. Take the ARV number, let's say $100,000. Then assume the property will need $25,000 in repairs.

In this specific example, when a property's ARV is $100,000 with $25,000 in needed repairs, an investor should not pay more than $45,000 for that property.

Remember in house flipping you need to have a plan, but you also need to know that many things will not go according to that plan. Having a padded budget and getting a property for the right price will help you deal with those unplanned expenses that are bound to happen.

Sometimes the simplest advice is the best advice, and to that point, we say: find the least expensive home in the most expensive neighborhood. The backing of a great neighborhood with top-rated school districts is a smart way to decide on which house to invest in. Here, your home will sell for more than in a less desirable neighborhood and is more likely to sell quicker.

Another piece of advice when looking for your fixer-upper is to focus on homes that only require cosmetic updates such as new floors, updated countertops, painted cabinets, painted walls, and landscaping. New paint has one of the highest returns on investment (ROI) of any possible home improvement – 107% just for painting the interior walls. Having an eye for design and being able to envision what a space could look like is an invaluable skill for a house flipper, because it will ultimately lead to the highest boost in value for the least additional cost.

As Ben Mizes eloquently states, "Look for the ugly. Look for the house with disgusting landscaping, a terrible kitchen, or a bad layout. These things typically scare away buyers, but if you know what you are doing, they can lead to the best flips." Sometimes you'll walk into houses that are plain ugly. But house-flipping is all about seeing the potential in any home to be something beautiful, modern, and a place you could see yourself living.

»MORE: Find cheap properties that meet your criteria with DealMachine!

Chances are you will need to take out a loan in order to buy the house and afford all the renovations required to get the house ready to sell. If the idea of getting a loan makes you a little queasy, we don't blame you, but we can tell you it isn't as daunting as you imagine. For some super digestible advice on how to get a loan for flipping houses, check out our article on hard money loans .

Getting a loan for a home you plan to flip is a little different than acquiring a loan for a home your own family would live in. A mortgage loan might not be applicable if you do not plan to live in the house. Buying a house to flip is considered an investment property, which changes your eligibility for a mortgage loan.

Your best bet if you are new to flipping and don't have the disposable income to pay for a house in full is to get a hard money loan through a private lender. These loans will cover the cost of the property and the cost of the repairs. One major benefit of acquiring funds from a hard money lender is that the process moves much quicker than it does for mortgage loans.

Time, as you'll remember, is one of the most important factors when flipping a house, and every opportunity to move quickly should be taken advantage of.

One downside to a hard money loan is that interest rates are almost always higher than for a mortgage loan, so the loan will cost you more in the long run.the good news is that a traditional 15 or 30-year loan is not in your best interest anyway, so hopefully, you will be able to pay the loan off quickly before it accrues more interest. You can expect to see interest rates for hard money loans land anywhere from 8%-20%.

When working with a hard money lender be sure to find out if they are providing you a loan based on the LTV or based on the ARV. LTV is the loan to value ratio and ARV is the after repair value.

"I've never done a renovation that went according to plan," said Mizes who has spent time both flipping and investing in real estate. When getting into house flipping, expect the unexpected and plan for the worst. Make sure to pad your budget and give yourself a large enough margin of error to deal with any setbacks that occur.

After you find the perfect property, secure enough funds, and have the keys in your hand, then the real work begins. You need to flip this house fast . You will need a plan and a small army of people to help you execute that plan. Hopefully, the inspection you had performed before purchasing gave you a great idea of what needs to be done first.

If you have major structural or foundational issues, those become a priority because the house won't sell if it has major problems like plumbing, electricity, water problems, etc. We recommend having a list of trusted handymen in each field available for work on hand. If you yourself are handy, that's a huge plus.

You will need a contractor (unless you are one) to help you throughout the renovation process. A contractor is someone who is licensed and has proven success and experience in the construction field. The contractor will oversee the entire process for any structural updates made to the home, like plumbing, electrical, windows, or doors. Contractors are knowledgeable about the regulations you need to abide by and how to work with all the different people involved in a home renovation.

Once you get all the essential fixes done, it is time for the cosmetic updates. You can work with a designer or do it yourself, but it is extremely important to make the home cohesive, updated, and practical. Know when to splurge on an expensive piece and when you can save money by antiquing or adding a DIY project. Another important piece of the flipping puzzle is the landscaping and the "curb appeal". Don't underestimate first impressions and how much they matter to home buyers!

Even though you might not be living in the home yourself and you might only own the home for a few months, you still need insurance while the home is in your possession. This will add to the cost of the flip, so each month you still own the home, you lose money on your investment to insurance costs.

This should act as an incentive to renovate and sell as quickly as possible.

Typically you will need 3 types of insurance when flipping:

• Vacant Building Policy
• Builder's Risk Policy
• General Liability Umbrella Policy

Most standard homeowners' insurance companies do not provide these types of policies, so you might need to look elsewhere to find coverage. Here are some of our recommendations for house flipping insurance:

• Foremost Insurance Group

You can expect to pay between 0.5% and 1% of the property's value in insurance cost per month.

When getting into the house flipping business, it is paramount for you to have a trusted team on your side. A house flipping team will usually include:

• Contractor (sometimes that is you)
• Electrician
• Real Estate Agent
• Insurance Agent

There are two ways to approach a house flipping team.

1. Hire a Contractor

If you take the more traditional route, you will hire a contractor. The contractor is then responsible for hiring any subsequent subcontractors who will do the work on the property. You as the owner do not have much say in who the contractor hires to do the work. This can be good because it takes the stress off of you for finding people, but it can also be bad because you do not have a say in who is doing the work on your property and vetting them yourself.

2. Act as the Contractor Yourself

If you decide to act as the contractor for your property, you will be a lot more hands-on throughout the entire process. This means you are responsible for finding and hiring any subcontractors like plumbers, electricians, carpenters, etc. As the contractor, you can vet each subcontractor and find ones within a price you like and that you feel are trustworthy, but it is a lot more work upfront to find good people.

One benefit of acting as the contractor yourself is that if you find good people, you can build that relationship and use them again and again for future flips or projects.

When working with a contractor or any subcontractors, consider requiring a signed contract on lien waivers. The contract should be completed before any work begins and is between you and any subcontractors stating that they cannot put a lien on your property if they are not paid. The waiver requires that the General Contractor goes to mediation before the subcontractors lien waiver you.

Once you've finished the repairs on a home and are ready to sell, it might seem like the end of the project, but it's still the final stretch of the race. You need to continue to work hard to market the property the best you can so you can get the maximum ROI possible on your investment.

Work on making the home feel inviting and like someone actually lives there. You want potential buyers easily to picture their lives when they walk through the home. A great way to achieve this is through staging. Staging is decorating the home and using modern and updated furniture and decor to make the home feel ready to live in. This helps potential buyers picture themselves in the home and see the potential for the space, instead of just empty walls and expansive wood floors.

If you're not sold on staging, take a look at these statistics:

Credit: National Association of Realtors

Most real estate agents can help you figure out services for staging a home and recommend some excellent designers. If you still need to find a great real estate agent, Clever can help connect you with top agents in your area with experience in staging and house flipping.

Regardless of whether you are selling the home or a trained agent is, there are some creative steps you can take to market the home to potential buyers.

• Take amazing photos with great lighting
• Utilize social media
• Do a video tour
• List online on various real estate sites
• Be upfront about any issues

For more tips on creatively marketing your home for sale, check out our article with 5 additional strategies and more details here.

It might sound off, but it’s true in real estate. Don't pay 6% of the ARV to sell your renovated house. Working with Clever can get you an experienced agent and help you maximize your profits when selling.

BONUS: Our service is 100% free . And there’s never any obligation to sign with any agent you talk to. But if you do decide to work with an agent you meet, you’ll also get a reduced commission rate exclusive to Clever home sellers!

If you are interested in getting into the house flipping business, you probably have asked yourself the question. If house flipping is going to be your full-time source of income, you need to know how to live off the income you make from each flip, which might only come in every 3 months or more.

In Q1 2019, 49,059 homes were flipped across the US, according to Attom Data Solutions . For some context in Q1 of 2019, house flippers in Pittsburgh, PA saw a gross ROI of 131.2%, Shreveport, LA saw a gross ROI of 112.5%, and Knoxville, TN saw a gross ROI of 105%, all according to Statista .

Homes flipped in Q1 2019 solve for an average gross profit of $60,000, according to Attom Data , which is the lowest profits the house flipping market has seen since 2006. The $60,000 profit translated to an average of 38.7% ROI compared to the original acquisition price -- which still keeps most flippers holding true to the ARV 70% model.

All data in the above table is from CNBC.

If you are serious about getting into the house flipping game, there is a place for you. Taking that first step is always the hardest part, but you can definitely do it! Clever is here to help you through the process by providing you with fantastic real estate agents, access to discounted fees, and leads for promising deals. Flipping houses is full of uncertainty, but the buying and selling part don't have to be. For more information on flipping homes in your local area, check out our blogs specifically on flipping houses.

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Dubai real estate market hits over 17,000 transactions in May 2024, reveals new Property Finder report

The data reveals May 2024 marked an all-time peak for Dubai’s real estate sector, recording the highest volume and value of transactions ever

Dubai’s real estate sector marked an all-time peak, recording the highest volume and value of transactions ever, according to Property Finder’s market performance highlights for May 2024.

The total number of transactions recorded was 17,713, an increase of 53 percent compared to May 2023.

The value of these transactions increased by 38 percent, touching AED46.5 billion.

UAE real estate market to reach highs of AED2.6 trillion by 2024: Report

New Dubai real estate market trends

“May 2024 has once again proven that real estate growth in the UAE is here to stay. We have seen a remarkable spike this month in volume and value of transactions not just from YoY perspective, but also exceeding pre-pandemic numbers,” Cherif Sleiman, Chief Revenue Officer at Property Finder said.

The market saw a massive rise in volume surpassing the previous peak achieved in March 2024 by 10 percent, and crossing the highest value achieved in December 2023 by 30 percent.

In terms of new rental trends, the report revealed that 78 percent of tenants sought apartments, while the remaining 22 percent considered villas or townhouses.

Of those looking for apartments, 58 percent preferred furnished properties and 40 percent opted for unfurnished units.

For villas and townhouses, around 57 percent of tenants searched for unfurnished units, and 42 percent went for furnished properties.

When searching for apartments, 35 percent looked for one-bedroom units, 33 percent expressed a preference for two bedrooms, and 19 percent wanted studios.

Among those keen on villas or townhouses, 43 percent looked for three-bedroom units, and 38 percent searched for four bedrooms or larger, showing a fairly equal distribution.

Top areas searched for renting apartments included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Jumeirah Lake Towers. Jumeirah, Dubai Hills Estate, Damac Hills 2, Umm Suqeim, and Al Barsha were popular among those looking to rent villas or townhouses.

Dubai off-plan property market transactions hit over 11,000 in new record

The off-plan market recorded the highest volume and value of transactions ever, touching 11,107 transactions.

“The record-breaking rise in off-plan investments this month shows a growing demand for community centric living and longer-term investments with the potential of high returns. This is being met by several new projects in the pipeline, catering to a variety of price points ensuring upcoming communities are not limited to a certain level of affluence. This diversity in existing and off-plan offering was recently revealed as a key contributor to why consumers consider the UAE for a future home, as seen within our inaugural White Paper launched at our second Annual PF Connect,” Sleiman added.

The previous peak was achieved in April 2009 with 9,837 transactions, resulting in a 13 percent increase and revealing a positive trajectory for long-term investment in the nation.

In terms of value, the off-plan market achieved transactions worth around AED22.7 billion, surpassing the highest peak last recorded in September 2023 by 25 percent.

The existing market continued to support Dubai’s real estate market with a year-on-year increase of approximately 8.8 percent in volume and 6,606 transactions recorded.

The value of these transactions experienced a notable increase of 21 percent year-on-year, touching approximately AED23.8 billion, compared to AED19.7 billion in May 2023.

“We will continue to play our role in elevating property search that is in sync with today’s needs, and work cohesively with regulators and partners to give people all the information they need to make sound decisions in their home-seeking journey,” Sleiman said.

Dubai apartments see ownership demand over villas, townhouses

In terms of ownership, the report found 59 percent of those seeking property ownership wanted an apartment, while 41 percent searched for villas or townhouses.

Among investors, 32 percent looked for one-bedroom units, 36 percent preferred two-bedroom apartments, and 14 percent sought studios.

For villas and townhouses, 40 percent of seekers wanted three-bedroom units, and 46 percent searched for four bedrooms or larger.

Popular areas for apartment ownership were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah.

Dubai Hills Estate, Dubai South (Dubai World Central), Al Furjan, Arabian Ranches, and Palm Jumeirah were the most desired areas to own villas or townhouses. Interest in Dubai South continues to grow following the development of Al Maktoum International Airport, indicating considerations for mixed-use communities.

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