Emerging Trends in the Indian Real Estate Market
The year 2016 has been an eventful one for real estate companies across the country. Right from Real Estate Regulatory Authority(RERA) being constituted as an Act to Real Estate Developers' Associations playing a proactive role; from public infrastructure growing in cities to changing consumer sentiments- it’s been an interesting year so far. I have put down some of the emerging trends we are seeing because of these changes.Builders Have No Choice But To Complete Projects On Time
Prior to RERA, project delays did not have any direct repercussions on the developer. There was of course brand dilution, but no impact in the short term. More over consumers did not have an option other than legal action in court or arbitration. Now the scenario will change – with RERA, any delay in projects (residential and commercial) will make the development liable to pay consumers to the tune of the EMI being paid by them. More over, the developer is now to park 70 percent of the project fund ina dedicated bank account in order to ensure that the funds are not diverted to other projects. These measures give an added incentive to the developers to avoid delays.
Customer Sentiment will Improve, & Lack of Trust will Diminish
Recent studies show that close to 25percent of the residential projects are delayed across India, which is the primary cause of
negative customer sentiment. Earlier this
year, Real Estate Developers' Associations across multiple cities came forward to create a forum to address consumer grievances;be it delay in completion, quality of construction or any other issue being faced. This along with RERA will start bringing in more planning and processes, which will eventually improve consumer sentiment towards home buying. RERA also allows for buyers to reach out to the developers within one year of taking possession in case of any issues or problems in the project –which over time will improve quality of construction and the sentiment.
Public Transport Will Drive Real Estate Growth In Suburbs
The Metro and public transport systems are starting to improve connectivity to suburbs, and that is going to spike demand in specific localities which benefit from the Metro.Such a trend has already been seen in Delhi and is likely to happen in other cities too.
High Rise Apartments Will Grow In Demand Across Cities
Developers are already seeing this in suburbs; but even in the city centre, there is going to be a growth in high rise apartments as seen in Mumbai.In Chennai, OMR, North Chennai and the suburbs are seeing a lot of high rise residential projects already in progress. They range from10 floors to 40 floors depending on the area. Consumers are opting for high rise because of multiple reasons such us safety, more shared space and larger club houses. There is a larger community of residents and that is always preferred by families having children.
Digital is Driving Discovery& Experiential Buying
The digital medium is where the consumers are doing all their research, and it’s a platform that all developers are starting to adapt to. Right from virtual reality tours for NRIs to enabling a 360 degree experience on their mobile optimised website, developers are trying out every trick in the book to attract the customer. Even the sales teams are being made to adapt to digital to enable better experiential selling, rather than just pushing a single project. Since the consumers are becoming more aware of what to look for before buying a house, it’s equally critical for developers to use these mediums to give more information to them.
year, Real Estate Developers' Associations across multiple cities came forward to create a forum to address consumer grievances;be it delay in completion, quality of construction or any other issue being faced. This along with RERA will start bringing in more planning and processes, which will eventually improve consumer sentiment towards home buying. RERA also allows for buyers to reach out to the developers within one year of taking possession in case of any issues or problems in the project –which over time will improve quality of construction and the sentiment.
Consumers are opting for high rise apartments because of multiple reasons such as safety, more shared space and larger club houses
Public Transport Will Drive Real Estate Growth In Suburbs
The Metro and public transport systems are starting to improve connectivity to suburbs, and that is going to spike demand in specific localities which benefit from the Metro.Such a trend has already been seen in Delhi and is likely to happen in other cities too.
High Rise Apartments Will Grow In Demand Across Cities
Developers are already seeing this in suburbs; but even in the city centre, there is going to be a growth in high rise apartments as seen in Mumbai.In Chennai, OMR, North Chennai and the suburbs are seeing a lot of high rise residential projects already in progress. They range from10 floors to 40 floors depending on the area. Consumers are opting for high rise because of multiple reasons such us safety, more shared space and larger club houses. There is a larger community of residents and that is always preferred by families having children.
Digital is Driving Discovery& Experiential Buying
The digital medium is where the consumers are doing all their research, and it’s a platform that all developers are starting to adapt to. Right from virtual reality tours for NRIs to enabling a 360 degree experience on their mobile optimised website, developers are trying out every trick in the book to attract the customer. Even the sales teams are being made to adapt to digital to enable better experiential selling, rather than just pushing a single project. Since the consumers are becoming more aware of what to look for before buying a house, it’s equally critical for developers to use these mediums to give more information to them.
