Subscribe To Newsletter
Connect with us

Blogs

Success Of The Real Estate Industry Is Largely Integrated With The Overall Development Of The Corporate Landscape

Published

on

Indian real estate has expanded exponentially in the past decade, where the industry also witnessed some transformations.

The implementation of RERA, policy changes, industry unification and advancing PropTech have propelled structural reforms in the Indian real estate ecosystem and its subsidiary industries. India is also home to one of the most extensive base of middle-income households, with growing disposable income and rapid urbanisation, all of which continue to drive the demand of residential and commercial real estate. 

Although the COVID-19 contagion has had its adverse impact across industries, there is still ongoing speculation as to how the situation will turn about for the real estate sector. The demand dynamics are going to substantially evolve as people grapple with the socio-economic and the health crisis. As per the India Real Estate report, the residential real estate sales have fallen by a massive 54% (YoY) while the commercial real estate sales have fallen by 37% (YoY) in the first half of 2020.

With shrinking cashflows, reverse migration of labour and the overall volatility of the industry, ensuring an efficient journey of each penny throughout the project lifecycle is going to be more important than ever, and technology is going to play a huge role in the process. 

The success of the real estate industry is also largely integrated with the overall development of the corporate landscape, which fuels the demand for commercial, residential and other sustaining infrastructure. On the brighter side, by 2025, the Indian urban population is expected to reach a staggering 525 million with the real estate sector contributing 13% to the GDP. 

But what will be the key drivers of these statistics?

A Move to the Organised

The real estate market, especially the residential real estate in India, has always been dominated by the unorganised sector with individual brokers and smaller players. But with the pandemic situation, the wind seems to be blowing in favour of Institutional Channel Partners and large advisories. 

The sector has already transformed from the brick-and-mortar industry to a service-driven industry. With restricted movement and rapid internet penetration across the population, the role of digital marketing and technology will also swiftly move from the fringes to the core. Generous investments in new technologies for centralised processes, digital presence to reach the consumers and innovative marketing solutions will lead the way in this new world order. 

The future is smart

Although the real estate and construction sector have been relatively slow to adapt to new technologies, but as we move from survival to revival, tech adoption is going to play a huge role in redefining the realty sector. 

The construction industry is already going digital with smart project management tools integrated with artificial intelligence, gathering data with IoT devices, drones and utilising technologies like BIM. This will ensure the delivery of projects on budget, time and quality for the sector, which, given the current outlook, is more important than ever. The developers need to be very sensitive to the time and cost element of the projects now.

That being said, the smart home market in India is also slated to reach $6 billion by 2022. The growing adoption of technology will pave the way for some very ambitious projects by the real estate industry while also ensuring cost-effectiveness.

Sustainable for Sustenance

The growing consciousness towards the environment by both developers and the buyers will be on the rise. This, in turn, will lead to the adoption of greener technologies in the built environment, usage of eco-friendly material and environmentally sensitive designs. This will also echo through the broad definition of ‘luxury’, which will evolve further to have a holistic and elevated living experience with generous help from nature.

2020 has been a year of turbulence. From grave environmental crisis to the onset of a pandemic but the real estate sector is expected to rebound soon with the help of the government efforts to rekindle the economy.

Easy credit options, a growing focus for ‘housing for all’ and favourable policies will further develop the trust between the buyers and the developers. But above all, the revival will be spearheaded by tech adoption in the real estate sector. 

By Prasoon Shrivastava, Founder and CEO,  Zepth

DISCLAIMER: The views expressed are solely of the author and RealtyNXT.com does not necessarily subscribe to it. RealtyNXT.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

ALSO READ:

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

© 2020 RealtyNXT | All Rights Reserved.