By Dr Niranjan Hiranandani
As India celebrates its 75th Independence Day, let us foretaste abouts its glorious future. Real estate in partnership with infrastructure have driven the GDP growth over the years with an estimated potential to become a $ 5 Trillion economy. Today, let’s discuss the paradigm shifts in trends and penchants, disruptions and policy regimes, new-age customers and evolving real estate markets and infrastructure scripting the growth story.
Industry Status: A long pending demand to grant ‘industry status’ to the Indian real estate sector which is the second largest employer with a rippling effect on multiple allied industries. The economic health indicator, real estate sector will play a crucial role in nation building and achieving a $5 trillion economy. Granting industry status will help the sector to be at par with other significant sectors on grounds of accessibility and availability of low-cost credit, where the biggest argument for granting industry status is the low rate of NPAs in real estate: just 2 per cent.
Ease of Doing Business: The second aspect which restricts real estate from growing to its full potential is the aspect of ‘ease of doing business’ which has been steadily improving over the recent few years. Expediting, streamlining and simplifying the approval process will go a long way in redefining the success of Indian real estate. Digitization of approvals is demanded to avoid time lapses, save cost and act speedily in a transparent manner. The introduction of technology integration in the form of AI, ML and IOT will make single window clearance become a reality.
Digitization: From land acquisition to title clearance, from zoning and user status changes to the quantum of FSI that can be granted, these are a set of challenges which digitization can resolve. These are among the largest impediments which prevent real estate from playing its role as an accelerator of GDP growth.
As real estate moves ahead in the new regulatory regime under RERA and IBC, it is time to also bring in transparency and accountability to these bureaucratic processes where red tape usually causes delays. It enhances the interest cost burden on projects, adding to the overall costing as also resulting in cost overruns which turns many projects non- viable in the long run.
Block Chain: The idea is to introduce tech-enabled land transactions through Block Chain innovative technology for simplifying and quick processing, ensuring much awaited transparency in the entire business operations. Simultaneously, it will speed up the process of and have a multiplier effect on investment spurring up multi-fold. This in turn, will bolster real estate growth reflecting higher GDP growth globally.
Sustainable Development – Sustainable real estate development is the future where real estate development must follow the mantra of ‘Recycle-Reuse-Replenish’. Natural resources need to be conserved, this is where real estate development has to factor in aspects like sewage treatment, rain water harvesting, turning garbage into compost and using it to fertilize green and landscaped spaces, harnessing solar and wind energy to power common utility aspects . It is about the holistic way of living, where real estate being used by end-users will not just reduce damage to the environment to the bare minimum; but will also see eco-friendly measures bring about sustainability.
This will also mean a shift in our lifestyles and living standards. So, electric vehicles instead of those that are fossil fuel powered will play a major role as will measures that help control geological disruptions through climate control. Living and working in sustainable real estate will be hand in hand with the growth of ‘conscious consumerism’. India will not just be an economic superpower, but a country where development will be aligned with social, economic and ecological goals.
Upskilling & Education: Achieving this will need two aspects: skilling and formal education for the right sort of human resources in real estate and the conscious consumer who not only appreciates but supports the new age feasible real estate development.
Inclusive Growth: Real estate should be the preferred career choice, contributing towards nation building with inclusive, innovative and interactive education, in tandem with Industry 4.0. The future will be all about inclusivity and diversity, so equal opportunities, encouraging women in leadership roles, pay parity, inclusive critical thinking, equitable and sustainable prosperity – these will help unlock the rich, untapped demographic.
Inference: India’s bright future will be powered by the ‘new age’ real estate, one where the industry is aligned with conscious consumerism and sustainability goals. The new-age homebuyers are inclined towards rising above from just ‘Customer Delight’ to an ‘Equitable’ stakeholder.
The author is National President – NAREDCO and Founder – Hiranandani Group
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