In line with the recent trending #10YearsChallenge, here are the ten things that have changed in the real estate industry in the last ten years from a builder’s perspective.
#1. 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.
#2. Builders are more eco-conscious
From procuring raw material to adopting sustainable designs and technologies, builders have now become more eco-sensitive and environment caring. It is estimated that investments on clean and green technology has almost trebled in the last ten years.
#3. 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 like Mumbai, Bangalore, Delhi to new markets like Pune, Hyderabad, Chennai and Coimbatore.
#4. A second home was no more a dream
In the last ten years, the residential market was bolstered by the emergence of destination homes and vacation homes. Home 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 In the last ten years, the residential market was bolstered by the emergence of destination homes and vacation homes. Home 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 attributes to the growth of residence-management companies which undertake both long & short-term contracts for these buyers.also attributes to the growth of residence-management companies which undertake both long & short-term contracts for these buyers.
#5. Click on the brick
The concept of buying/selling a home online was a far-fetched reality around ten years back. Established developers with a good reputation and goodwill in the market have promptly jumped on the e-commerce bandwagon to take the omnichannel route to buy/sell houses.
#6. Homes got smarter
Connected homes or smart homes which come with interconnected devices that use Internet and remote systems to provide a superior living experience to homebuyers have captured the imagination of customers in recent times. These products combine delightful features like comfort, entertainment, mobility and security, providing consumers with connected solutions all the time. 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 penetration of 9.5 per cent of homes by 2023 compared to 0.8 per cent in 2018.
#7. Community homes
Living has seen a significant 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. Eg. Senior Citizen Homes, Apartments wings for single women, single owners.
#8. Proptech is the new mantra
In the last ten 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.
#9. 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.
#10. 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.
This article is contributed by Ashish R. Purvankara, Managing Director, Puravankara Limited.
The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor)