Despite a muted global economic slowdown, the Indian economy is on a steady trajectory over the last few years. Underlining the current trend of the Indian real estate market, which has overcome the slowness from the previous year, the market is gradually expanding its horizons with new opportunities. The impact of GST, and demonetization, compounded by RERA has filtered the unaccounted flow of money into the real estate market. This will further lead to the growth of more sustainable and authentic players in the market.
Good Time for Buyers
From the customer’s perspective, this is a favorable period as the influx of liquidity in the system has lowered down the home loan rates. The banking and non-banking financial institutions are facing a fierce competition to stay ahead in terms of market occupancy. Developers and promoters on the other hands are offering attractive rates and flexible payment plans to draw potential buyers. Experts believe that once the market stabilizes in a few months, there would be a speedy recovery in both the primary and secondary residential market.
Innovations of New Business Models
The advent of new-age technologies like artificial intelligence, big data are also playing a pivotal role in transforming the regular business processes. Corporates and major players are embracing innovative technologies to automate the back-end activities. Furthermore, data analytics is a key attribute in defining how technology can be leveraged to improve existing commercial operations. Better transparency is expected in the market as developers are agiler in balancing the short and long-term corporate needs. Modern techniques and smart innovations like electronic garbage system, solar lighting facilities, smart parking options, and rainwater harvesting are alluring for the buyers. Virtual tours are becoming a reality as developers are assisting visitors and buyers to visually take a tour of the property. The internet has opened unprecedented doors as Smartphones are helping the market to grow by sharing data in quick time. Numerous real estate mobile applications have boomed into the market which makes it more exciting and engaging for the buyers and promoters.
The Changing Landscape
With the changing economic scenario and evolving environment, residential and commercial requirements are changing at a brisk pace. While the demands by the buyers are more discerning in terms of quality and services, the developers are innovating new ways to cater to the customers. Few of the mentionable changes in the real estate market are:
Virtual Communities: This is an online platform for buyers to get the best deals and stay abreast about the updates in the market. The developers are offering and encouraging such platforms as they are able to move a large inventory in one shot. Property deals are updated on the portal and interested buyers can express their interest along with the expected budget.
Serviced Apartments: With a huge rise in the corporate sector, the demand for serviced apartments has gone to new heights. These apartments are fully-furnished residential units accompanied by housekeeping, concierge, and maintenance services. Metro and tier-I cities having a huge IT and ITES population are the biggest buyers of these furnished apartments.
Green Homes: Eco-friendly homes with green certifications are the latest trends in the real estate market. Compared to the traditional homes, green homes are bit expensive, however as the operating cost decreases over the time, it will be much feasible for the consumers. Along with better spaces to live, green homes also assist builders to market their products and explore the untouched territories.
Hybrid Spaces: The commercial segment is also witnessing a steady trajectory and is poised for a massive growth in the future years. The transformation of the traditional work-culture environment and evolving startups has introduced the concept of hybrid or co-working spaces. As this trend expands towards the tier-II cities, it creates an upwards-tangent in productivity, and cost-efficiency while creating new-inroads in the real estate market.
An Investment Hotbed for Foreign Investment
As the global market recovers from its slowness, global investment banks and private equity firms like JP Morgan, Blackstone has already entered into the residential, commercial, and warehousing market. KKR Assets Finance Ltd has invested up to 1 billion USD in residential projects based in Bengaluru, Chennai, and Gurugram. Infrastructure projects like the DFC (Dedicated Freight Corridor) and the DMIC (Delhi-Mumbai Industrial Corridor) along with initiatives taken by the Government is attracting foreign investment in India and driving the Indian economy.
The Propositions for Future
As developers try to be more ingenious by offering smart and affordable homes, the ‘organized’ real estate industry stands to be a key contributor to the Indian economy. With a majority of developers aiming to finish their current projects, discounts and freebies offered by the developers are touching the sky. The EMI’s have been more considerable than ever, which is helping the buyers to convert their dreams into a reality. The mantra of ‘affordable housing for all’ is driving the Government initiatives at a brisk pace with an aim to provide homes to the citizens. With such big strides taken forward, the fortune of the Indian real estate market is going to outshine all the previous milestones and create a benchmark of its own.