“We keep moving forward, opening new doors, and doing new things, because we’re curious and curiosity keeps leading us down new paths.” - Walt Disney
In the last decade, the Indian real estate industry endured various changes in the form of structural reforms, altering regulatory environments, increasing consolidation amongst the players, changing buyer preferences and introduction of new technologies.
This period also witnessed developers transforming their strategies and laying emphasis on reducing the end-user trust deficit in the realty market. This was done with the assistance of multiple forces like Property Technology (PropTech), digital media, the advent of organised retail and by embracing end-user preferences.
Below are 10 things that have changed since the last 10 years in the real estate industry – from a builder’s perspective:
a. Builders have segmented the market – Developers have primarily segmented the market into premium affordable and affordable homes. In recent times these segments have witnessed strong latent demand, thereby increasing the supply and giving more Indians the opportunity of owning a desirable home.
b. Builders are more eco-conscious – From procuring raw materials to adopting sustainable designs and technologies, they have now become more eco-sensitive and environment caring. It is estimated that investments in clean and green technology have almost trebled in the last 10 years.
c. Builders are targeting non-metros – With the emergence of start-ups and a rise in the presence of multinational companies in the country, the disposable incomes have also grown considerably in the last decade or so. This has compelled developers to shift their focus from traditional markets such as Mumbai, Bengaluru, and Delhi to new markets such as Pune, Hyderabad, Chennai and Coimbatore.
d. Second home was no more a dream – In the last 10 years, the residential market was bolstered by the emergence of destination/vacation homes. Buyers are now more open to the idea of investing in a second home when there is a good price proposition on offer. This trend also led to the growth of residence-management companies which undertake both long & short-term contracts for these buyers.
e. ‘Click on the brick’ – The concept of buying/selling a home online was a far-fetched reality around 10 years ago. Established developers with a good reputation in the market have promptly jumped on the e-commerce bandwagon to take the omnichannel route to buy/sell houses.
f. ‘Homes got smarter’ – Homes that come with interconnected devices that use Internet and remote systems to provide a superior living experience, have captured the imagination of customers in recent times. According to industry estimates, the Indian smart home market is currently valued at about $893 million and is expected to grow by leaps and bounds in the next five years, showing a penetration of 9.5 per cent of homes by 2023.
g. ‘Community Homes’ – Living has seen a big tectonic shift during this period as people with like-minded interests and preferences came together to fulfil their desires. Builders have responded well to these communities by designing living spaces around their requirements. e.g. Senior citizen homes, apartments for single women, single owners.
h. Proptech is the new mantra – In the last 10 years, the real estate industry witnessed a strong integration of digital and automated technologies like Data Analytics, Data Mining, Artificial Intelligence, Virtual Reality and Machine Learning. Developers have now shifted their focus towards customer centricity and customisation to meet the ever-evolving desires of the home buyer.
i. Booming Millennials – Millennials (born between 1980 – 1996) were/are in their mid-twenties. With the advent of internet, exposure to better education and varied career aspects, these millennials have changed the lifestyle landscape of India. With high incomes and aspirations they have become very particular about investing in a new home and this has given us developers an opportunity to sharpen our strategy and outreach.
j. RERA brings in a new era – With the introduction RERA, the end user had easy access to property related data and information, creating a transparent interface, which ultimately helped boost their confidence. RERA has not only brought back confidence in the end users but also given the customers better clarity to make an educated decision towards one of the most important decisions of their lives, buying a home.
(The author is President, CREDAI, Bengaluru)