India is a unique country in itself, where religious beliefs and modern values go hand in hand. People look at buying a home or opening a new venture as an important milestone in their lives. After gold, the property and realty investment is the most sought after asset for which the average Indian considering Indian real estate scenario has changed rapidly over the past few years, slogs the most for in his life. This mindset of Indian population towards land or house ownership is one of the strongest factors that have contributed to increase in demand for residential or commercial space.
As a result, Real Estate Industry has flourished into quite an accommodating sector that is thriving on the symbiotic relationship that it enjoys with around 250 ancillary industries. Interestingly, this sector is said to have more than 6% of the stake in India’s GDP and this number is likely to double up in the coming decade. Like all other sectors, Real Estate Sector has also understood the need to wake up to economic liberalization and reforms.
The tremendous growth in economy, improved buying power of Indians and positive attitude of foreign investors who see India as a promising land for investing in Indian real estate, are some of the factors that have caused unprecedented growth in realty and infrastructure sector in India. Every construction contractor, builder/developer, land owner or a large-scale professional has its cash register ringing. They have ample projects in hand as well as in pipeline and are being approached by people of all income ranges to get their dreams converted into reality.
With so much positivity floating in air, it is the right time to sit and assess what trends realty and infrastructure sector will be witnessing in the coming times. So, here is a snapshot of the emerging trends in Indian real estate sector.
Indian political scene is promoting cleanliness in action, in thoughts, in policies as well as in business ethics. This diktat to stand for transparency and documented transactions is going to rub the realty sector too, of course positively. Till now, there was an unspoken fear of losing money in real estate amongst small investors and they considered buying a plot as one of the riskiest deals. Instances of unclear titles, tricky registration process and undue interference of land mafia made it impossible for a common man to think of investing in residential or commercial layouts. But, with increasing transparency and supportive Government policies, this fear is likely to disappear.
The Securities and Exchange Board of India (SEBI) has drafted final regulations to govern the functioning of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). This step is surely going to improve the cash flow in realty as investors of both Indian resident, non-resident type and institutions as well, will be able to bring in the much needed cash with added confidence.
- “House for all”– a golden chance for realtors
Another trend that is going to rule the real estate scene for years is development of affordable housing projects. Prime Minister Narendra Modi has initiated and approved the launch of “House for all by 2022” and this is seen as one of the most lucrative opportunities amongst realtors. This scheme is going to bring the public and private entities closer and they would work together to make this dream possible. Thus, building of affordable flats, concept of crowd-funding and various other initiatives that are able to promote seamless completing of housing projects will be put into action. Incomplete projects are likely to become a thing of the past.
- Coming closer of retail and office spaces
Salaried class in India works for about 9-11 hours a day, and so, most of their time is spent in office. Retailers find it difficult to attract the attention of buyers due to such a busy lifestyle of their target audience. So, the idea of a mall or an office located miles apart is now transforming into an ORC (office retail complex), where retailers will occupy the same premise as the offices. Rise in number of enquiries about ORC on most websites is the proof of this trend to be on a high rise.
- Technologically advanced workspaces and residential complexes
No one can deny the fact that seamless connectivity has become a need rather than luxury in all sorts of spaces, whether commercial or residential. Owners need to manage their offices even from outside the premises; they need Wi-Fi, business-centric apps, data security solutions, mobile communication access, and various other technologically advanced features to keep the business processes going 24 by 7. Work-from-home models of working are gaining momentum; accordingly, builders too are coming up with residential spaces that have network access points, and office-like connectivity solutions. More than aesthetics, technology is going to be the USP of commercial and residential spaces. Even the property listing sites like HousingMan lay emphasis on these features while giving space to their clients.
- Shared spaces and office spaces on rentals
Rental income is going to be one of the main sources of income in coming times. Prices soaring high in real estate make it difficult for the growing population of start-ups and businesses with average turn over to have their own establishments. The rental properties getting maximum enquiries on the online property listing platforms are indicative of this popularity. Apart from these being available to the tenants it would also allow the owners to convert their idle spaces into revenue centers.
Undoubtedly, there is an increase in demand for houses and office spaces, but the importance of clear demarcation of agricultural, residential and industrial areas on any geographical land cannot be undermined. While promoting real estate, it is essential to ensure that the natural green spaces and agricultural lands do not disappear from the town map. Regularized way of developing cities can be made possible, with supportive government policies, technology-oriented construction, environment-friendly building materials and fittings, new methods of waste management, increased standardization and resource-management. Increase in FDI, enhanced transparency and revamping of management standards are some of the expected trends that would not only promote real estate and infrastructure, but also would take care of the ecological balance. The hope is to create a way of living which is not only luxurious and modern, but also thoughtful and futuristic in approach.