Disruptions that will lead the growth in the real estate sector

The Indian economy has displayed strong resilience in the last one-and-a-half years, having grappled with numerous highs and lows, and is now on a path of recovery driven by timely interventions by the Central government. Real estate industry too, despite facing multiple challenges in the past five years, continues to be the preferred investment option for Indians. We expect robust growth coming this year at the back of new trends and technological interventions.

Last year, the contribution of Indian real estate has emerged as one of the biggest drivers for the economic recovery in a time when numerous industries took the hit. This can be attributed to multiple factors, such as more conducive policy reforms like reduction of stamp duty in multiple states, lowest possible home loan interest rates et al.

Our industry has transformed itself by focussing on customer-centricity which has emerged as the winning mantra, helping us post exponential growth in the last few months especially in MMR region. The MMR region has become the newest outlier in the Indian real estate with record number of housing registrations and new launches. The COVID-19 pandemic has also aided growth by making home ownership as the number 1 priority across the world. 

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Moving forward, as the sector is looking at emerging technologies, materials, processes that help develop a superior quality home in a shorter time frame, here is a list of mega trends which are currently being witnessed in the sector, and are expected to continue to shape the future of Indian realty: 

Sustainable realty is the new choice for the conscious homebuyer

As the world prepares to counter the effects of climate change, every bit done to minimise environmental degradation will go a long way in saving the planet. Over the past few years, we have seen consumers becoming increasingly conscious about their carbon footprint. Today's new-age consumers are conscious of their lifestyle choices and aim for sustainable living. 

Developers are thus undertaking multiple initiatives and adopting green building practices such as solid waste management, water recycling, rainwater harvesting, utilisation of renewable sources of energy, efficient design that optimises natural ventilation, and ensures adequate blue and green infrastructure in their properties. While such practices became the norm some time ago, 2022 is expected to witness more of such environment-friendly building processes. 

Digital-first approach is becoming more mainstream

The disruption caused by the COVID-19 pandemic has accelerated digitisation across sectors, including the real estate industry. Due to restrictions posed by the pandemic, as buyers were forced to stay indoors, developers had to pivot to more innovative digital solutions to ensure continued demand. Practices like AR sightseeing, online open houses as well as virtual bookings became more common. While as of now only a limited number of developers have adopted digital solutions, with this New Year, we hope to see digitisation becoming more mainstream across the industry - with smart contracts and unique virtual experiences for homebuyers. 

Workspaces are a part of new-age homes 

Next gen home buyers have started buying homes with workspaces and this trend is likely to continue in the coming years. What started as a necessity during the pandemic has now become a part of the lifestyle with more and more organisations permitting remote working and hybrid option to their workforce. Many developers already have a supply which has a dedicated workspaces to cater to this need. 

With all these trends taking shape in the realty ecosystem, we see a new futuristic era of real estate development in India as it bounces back as a leader in best practices of real estate at a world stage. With its young population and demand for growth, India is well suited for positive trends for the coming years. When the pandemic comes to an end, millennials will be approaching the average age to become first-time homebuyers. As the newest and largest generation of buyers, millennials will push new housing patterns and digital demands in real estate.

The realty sector in India is one of the pillars of the economy and is the second-most elevated business generator in the country after agriculture as the sector is interlinked to 250+ allied industries. The sector contributes almost 6-7 percent of the economy and is set to increase to around 13 per cent by 2025. All in all, the future will be a harbinger of growth, innovation, and investment for the residential real estate sector.
 
(Boman R Irani is the President-Elect of CREDAI National for the term 2021-23 and is the current President for CREDAI-MCHI. Views are personal.)

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