Quite a handful of trends are fast becoming prominent across the Indian real estate industry. The good news is that they are being accepted with open arms and are endured in the positive light of the day. There is no denying the fact that the Indian real estate market is still one of the most promising pillars of our economy. A contribution of nothing less than 6-8 percent of GDP, the real estate market still stands second when employment generation is taken into consideration. Reportedly, the sector has been at the helm of transformation courtesy changes in policies, fall out in case of a majority of funding projects and subsequent aftermath affecting a string of residential projects along with developers who are bent on experimenting across newer sector and offerings. For instance, reputed builders in Kolkata are now exploring to bring forth an element of luxury and affordability for newly built residential projects in the city. The way this economy is shaping up, the newer trends are a befitting change to help shape up the game like never before.
One of the most pivotal roles that have been on the rise in the past few years affecting the realm of the real estate market; technology has thrown a string of offers for both buyers and sellers in equal measures. And it doesn’t only apply to construction but also in terms of simplifying the process of purchasing a property. With access to a truckload of information, client servicing, meeting customer expectations, technology has changed the very way at how these things were looked at five years ago. Technology, albeit, has changed the very gamut of construction in terms of quality and time put together. What took years to be built can now be completed under a few months. The whole process has picked up the much-needed pace to match the urge of the hour, staying ahead. Take Augmented Reality and Virtual Reality, for instance. The introduction of these technologies has now made it possible to offer prospective customers willing o buy a property the final look and feel, thus luring them to book in advance without needing to visit the place physically. If you have tried a 360-degree viewing of your future apartment visiting the site of a reputed builder, you must have had a glimpse of how convenient it has become to show a customer around the property without the need to be there in the first place. That India could potentially emerge a tech, hub chain for real estate is beyond any doubt and will usher in befitting standard for one and all to follow and build on.
Major cities across the country have already witnessed the FDI chasing after assets that are investment-ready, mostly offices at prime locations. The rising demand for rentals has generated a big thrust for foreign investors to draw upon in the past few years. At the onset of 2019, the industry witnessed a 28% increase in terms of private equity inflow compared to last year’s figures. That heralds the supreme confidence that this country has been able to muster for grade A commercial spaces, warehouses, and retail entities. Foreign investors are working on investment partnerships by taking back local developers, which in turn shall offer traction for development assets at large.
Prioritizing Consumer Demand
With the sales slowing down and the liquidity tightening, developers are left with no option but to realign strategies. The entire game is now restricted to two keywords, namely trust and affordability, which have also roped in smaller developers to join the bandwagon of consumer demand. There has been a considerable decrease in the average size of units to match budget offerings as developers are pushing their way towards completing existing projects real fast. Contrary to early scenarios, builders are also open towards joint developments, acquisitions, mergers with other renowned and prestigious developers. Hyderabad and Kolkata are two such cities that seen instances where local developers have joined hands with national level developers to elevate their offering for customers from all around the country.
A More Pronounced Market Consolidation
There is no denying the fact that home sales have weakened all over the country. Nevertheless, some of the best names in the businesses have still managed to show sustained sales across prominent cities of the country. Incidentally, these are developers who are also continually striving to lower their debt by hiving off unto assets leaving smaller developers struggling. No wonder the total number of real estate companies tipping into insolvency has doubled since 2018. The govt has shown promise to set up a 25,000-crore fund for all residential projects that are currently stalled. Still, in all probability, it will only manage to revive even less than ten percent of projects now behind schedule.