Real estate consultants are undergoing a fundamental transformation, expanding beyond traditional transaction and advisory services into integrated real estate solutions platforms. According to Business Standard, Shikha Kapur, partner at Deloitte India, noted that consultancies are evolving into comprehensive service providers rather than transaction-focused businesses. This strategic shift is driven by growing demand from developers and corporate occupiers who prefer dealing with fewer service providers across the entire real estate lifecycle.
Recent transactions demonstrate the scale of this expansion strategy. Anarock acquired a 75% stake in myHQ, a coworking space booking platform, in a ₹125 crore cash-and-stock deal in 2022 to capitalize on growing flexible workspace demand. The company also recently acquired a 51% stake in DSP Design Associates, an architecture and interior design firm. Similarly, Savills announced the acquisition of majority interest in Hotelivate, a hospitality advisory firm with South Asian presence. Colliers International acquired controlling interest in Bengaluru-based Synergy Property Development Services in 2019, as reported by Business Standard.
The expansion strategy involves both organic growth and strategic acquisitions, with most deals funded through a mix of equity and debt. Harsh Parikh, partner at Khaitan & Co, explained that the market has become highly competitive, driving consultants to include various streams like design and architecture. Anarock's draft red herring prospectus for its ₹1,000 crore IPO identifies the DSP acquisition as one of the fund usage, with ₹148 crore of issue proceeds allocated for this purpose. According to industry experts, these adjacent businesses provide more recurring and predictable revenue streams than traditional brokerage activities.
The industry consolidation is expected to continue across multiple service verticals. Shrinivas Rao, CEO of Vestian, emphasized that acquisitions create maximum value when they generate revenue synergies through cross-selling opportunities. For example, existing leasing clients could subsequently use consultants for design, fitouts, project management or facilities management services. Smita Agarwal, chief operating officer of Anarock group, noted that advisory practices are naturally evolving beyond transactions to offer comprehensive services, with developers and corporates increasingly preferring fewer partners for complete real estate lifecycle requirements.
