With the country transitioning from an agrarian to a service-based economy, India has always sought to overcome adversity and emerge stronger. It has been 75 years since India’s independence, and the country has faced numerous challenges since then. Following independence, the country’s economy evolved through agriculture, trading, BPO, and IT services. The rise of urbanisation and economic liberalisation fuelled the economy and the real estate industry, which opened up a range of opportunities.
Today, India is one of the largest growing economies in terms of the real-estate sector. The astounding emergence of India’s towns and villages, which are being strengthened by robust infrastructure, is the hallmark of our country’s growth. Furthermore, due to increased demand from citizens, the real estate market is being fully utilised. The growth of this sector truly correlates with the progress of the country. Let’s look at some events that have turned the phase of the real estate industry:
- Covid Era:
The year 2021 is marked as a major turning point in India’s residential real estate sector. The Covid-19 pandemic altered the nature of how people work and live across the country. Even when the economy was collapsing, the real estate industry was making frenzy profits. One of the reasons for this was the amalgamation of technology with real estate. Online bookings and virtual home tours made the process of buying a property very efficient. While the covid-era witnessed a rise in residential properties, the post-covid era saw a rise in commercial spaces. Businesses which were shut during the pandemic such as cafes, restaurants, hotels, etc were now reopening with the country’s functioning coming to normalcy.
- Foreign investment:
Over the last ten years, the Indian real estate market has received over USD50 billion in capital, for which foreign investments account for approximately 65% of total inflows. Foreign funds exposure has increased since 2017, with the implementation of reforms such as the Real Estate Regulatory Authority (RERA), the Good and Services Tax, and others. RERA has increased transparency and accountability in the sector, giving investors much-needed trust.
Rising foreign investment in the country’s real estate paves the path for sustainable real estate, including green and zero-carbon structures.
- Technological advancements:
Technology has revolutionised the way we live and work, and it is gradually altering the way real estate operates. Following the COVID-19 outbreak, commercial real estate developers became compelled to use PropTech to launch new projects and schedule virtual site visits. Developers are now creating retail spaces with touch-free and voice-controlled technologies to ensure maximum security. The technology has also eased the process of choosing property type, flooring, location, and other dimensions. Furthermore, AI and cloud-based technology can now assist retail developers in streamlining leasing and other procedures by monitoring tenant profiles, applications, screening, and much more.
- Consumer Attitude:
A shift in individual’s attitudes towards housing and commercial spaces has changed drastically. People are now moving more towards sustainability. Housing, post covid has become more than just a living space. Individuals today ensure that housing should be a well-rounded and harmonious experience. An insight into residential properties suggests people are now more interested in ready-to-shift homes to combat the hassle of building a new place from scratch. The recent change in the dynamics of the workplace, that of working from home has made people prefer housing spaces in remote locations. One of the benefits of this is that housing in non-metro cities has increased, thus generating more opportunities.
Rapid urbanisation, changing consumer behaviour, legislative reforms, and the impact of COVID-19 are all driving the evolution of this pillar right now. The real estate business has begun to rebound after being devastated by the pandemic. Key players in the industry such as Goyal & Co. have expanded their services while being in tandem with the country’s progress. Despite several barriers, Goyal & Co. has grown tremendously and risen to meet the obstacles.
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