The real estate sector has witnessed numerous market cycles, policy reforms and technological innovations over the last 10 years. From the aftermath of the global recession in 2009 to the industry-revolutionizing influence of RERA today, here are 10 biggest changes in India’s real estate sector in the last decade.
RERA is perhaps the most significant change in the real estate sector. The policy introduces formality and compliance to the sector. The overall goal is to protect the interests of home buyers in an efficient and transparent manner. RERA will streamline processes and lessen opportunities for project delays.
GST consolidates many of the previous indirect taxes including VAT, Service Tax and other state levies. The availability of input credits is expected reduce overall project costs.
The biggest impact of demonetization has been the elimination of unsecured cash transactions. The shift towards a cashless economy has brought transparency to the valuation of properties since people can no longer buy property with unaccounted cash.
Affordable housing projects were given a significant push when Union Budget 2017-18 granted infrastructure status to the Government’s flagship program, Housing for All by 2022. Many reputed developers are now launching projects in the affordable segment.
Commercial Real Estate Growth
As more international organisations establish their offices in India, this creates an enormous job market and an equally enormous requirement for residential areas.
Investment in infrastructure and connectivity have led to the emergence of growth corridors in city suburbs. The growth corridors address increasing demand and help control rising prices.
Eco-friendly buildings optimise use of local materials, minimize their impact on local ecology, and are built to reduce power, water and material requirements. Developers now strive to minimise any adverse impact on the environment.
Smart cities are the future of India’s urban planning initiatives. These cities are characterised by device connectivity, utilization of big data and creation of feedback loops. Developers have had to implement innovative approaches to housing, transportation and utilities.
Technology and data play a major role in the real estate industry. Developers employ innovative technologies to efficiently plan, design, construct, and manage construction projects.
NRI Property Investment
The slowdown in the residential real estate market over the past few years has had developers focus on NRI buyers. The depreciating rupee value is also benefitting NRI investors.