The changing contours of technology are urging realtors and developers to ride the technology bandwagon and induct all that is popping up from the R&D labs.
The 7th conclave of National Association of Realtors held in Bengaluru dispels gloom and calls for remaining alive to the needs of the emerging younger clientele.
Realty in India is on the cusp of change with a young and impatient India demanding reliability and integrity from the developers. Realty is all about selling trust which is nowhere demanded more than in real estate as customers choose a lifetime product for themselves. They look for not merely the price but also time while making their choices. The USP in the industry has changed from ‘best practices’ to ‘clean practices’ and ‘e-commerce’ is yielding place to ‘omni-commerce’. The changing contours of technology are urging realtors and developers to ride the technology bandwagon and induct all that is popping up from the R&D labs.
Smart homes are already here and smart cities are emerging on the horizon. But these will have to satisfy the demands of sustainable development. India is likely to see incredible growth in the next few decades and is all likely to emerge a leading supplier of expertise in city planning and development. Services too would need branding in order to be credible. Is the developers’ fraternity ready to face these challenges?
These are some of the issues that popped up at the seventh national convention of the National Association of Realtors (NAR) that concluded in Bengaluru on August 27. The mood among the 1,200 representatives who gathered for the conclave was clearly upbeat despite the sector reporting sluggishness during the last one year. Karnataka Chief Minister Siddaramaiah who inaugurated the conference added further cheer by unveiling plans for the Chennai-Bengaluru-Mysuru industrial corridor and Bengaluru-Pune-Mumbai industrial corridor. Recognising the realty sector’s compound annual growth rate (CAGR) of 19% in Bengaluru, the Chief Minister stressed the need for induction of skilled manpower and professional management.
80,000 new jobs annually
Irfan Razack, Chairman of the Prestige Group, spoke of the vital contribution of the construction industry to the national economy. Razack, while lauding initiatives like Tendersure (which he said were imparting a swanky look a la European cities to the city’s Central Business District), said one million square ft. of construction created jobs for 10,000 persons. Bengaluru’s developers were creating eight million square ft. of space annually for the IT industry alone and were thus creating 80,000 jobs a year. “It is a huge transformation. When jobs are stable, people demand homes. But an affordability barrier keeps them away from realising their dream. It is for the Government to initiate measures to fill the gap as the taxes for the State and the Central Government constitute over 30 per cent of the component of the money exchanged,” Razack said.
Dispelling the gloom
There were more voices dispelling gloom. Chairman of the NAR Conference and MD, Silverline Realty, Farook Mahmood, would not take the overhang of the inventory as a sign of diminished appeal of Bengaluru as an investment destination. Farook said there were three kinds of inventory i.e., ‘on the drawing board’, ‘under construction’ and ‘lights on’. Most of the inventory in Bengaluru was under the first two categories rather than the third one.
Akash Gupta, Managing Partner, Capaegis, asserted that the vibrancy in Bengaluru market owed itself to quality construction offered by the city’s developers. He says there was no room for despondency as the FDI arrival had been robust during the last six to nine months and the REIT has gained traction in places like the United States and Singapore which promises developers to gain leverage.
Integral to macroeconomy
Hitesh Ahir, senior research officer at the International Monetary Fund, paints a rosy scenario for the housing sector, referring to the increase in house prices in about half the advanced economies and two-third of the emerging economies. Hitesh says a well functioning housing sector is critical to the overall health of the economy. Housing also plays a key role in the mortgage market and facilitates mobility of labour within an economy. He feels housing is an important component of investment. He says there is enough evidence to substantiate the claims that housing cycles — boom or bust — can be a threat to the macroeconomic and financial stability of a country which only goes to prove the crucial role the sector plays.
Foray of smart devices
Brand domain specialist Harish Bijoor advises the developers to be on the constant look out for changing public perception and advent of technology. He says 72% of Indians being under 35 years of age, selling in India is essentially selling to an impatient population. He says a good brand answers before questions are asked. Bijoor says future lies in technology. “Currently there are 10 billion devices connecting the people across the world and the figure is set to rise to 28 billion by 2020. Internet of things (IoT) is changing the contours of living and homes and developers would have to remain alive to the new technology.” He says it is within the realm of possibility that future fridges would be talking to toasters which, in turn, will be sending messages to the grocer for supply of bread or eggs.
This article was originally published on www.thehindu.com dated August 28, 2015
Image Credit: www.thehindu.com
