The Return of Indian Residential Real Estate
The property rates in India between 2000–2010 grew by 52%( in leading 7 cities) .Decade after that it has grown only by 32%.
Last few years average property prices year on year grew by 5–7% only and it came sub 2% during pandemic
The increasing speed of economic growth post 2014 could not bring clear win value for the sector while 2019 posed a great year to register a comeback it was soon hit by Pandemic in 2020.
Real Estate sector in last few years have got a new breed of actors ‘Start Up Entrepreneurs’ who have been disrupting the market with their actions and pushing Real Estate recovery .
The factors have not been on side of only pushing the bar up for more projects and buyers to come but to create an atmosphere of trust in Real Estate for buyers/consumers/investors to stay positive.
The recent developments happening in the industry clearly indicate we are converging in all possible way for Real Estate to once again become the Blue Eyed boy of Indian investment market.
Some of the key steps in Real Estate which I see being taken with clear a short term and long term impact
- RERA :-The first big regulatory framework brought forward for consumers to feel secure on their hard earned money will really get roofs on their head
- Model Tenancy Act :-The recent announcement will push the investment confidence lot more higher amongst owners/investors as their interests are safe guarded with high contracts
- Identity Verification :-Securing the background of an occupant in the house increase lot more confidence of community and house owners
- Emergence of Prop Tech :Prop Tech has been emerging very strongly amongst the Indian Real Estate sector.While the early engagement has been on side of marketing Real Estate better but in last 5 years Prop Tech is becoming flag bearer of the Residential Real Estate market
- Transparent Property Markets :- Buy/Sell/Rental all form of agreements mandated to be registered with right authorities.This data provides deep insight to micro-market functioning of Real Estate
- Emergence of Financial Services in Real Estate :Bringing forward the core industry financial instruments like guarantees/fractional ownerships etc back the industry transactions very well
- Affordable Housing :- The inclusive goal of housing for all has brought the traction of Real Estate well in Semi Urban and Rural areas too.Urban cities are also developing Affordable Homes which have increased confidence of end users to buy these low price homes.
While we all wait for Pandemic to go and get back to normal, I am sure there is lot more waiting for disruption and success of this sector in 2021–25
If you are interested in brainstorming on Indian Real Estate Market you can reach me on: sachinjoshi29@gmail.com
