There have been a slew of developments in the real estate sector all throughout last year and many new trends are anticipated in the real estate market this year. According to the Managing Director at RICS South Asia, Sachin Sandhir, there have been many positive developments last year including the REIT guidelines, Regulator Bill and also the Land Acquisition Bill. The Finance Ministry was abuzz with newer measures related to the real estate sector and the overall health of the economy in general. From the context of positive policy making, the year 2013 set the ball rolling with the benefits slated to be received by the market this year if all goes well.
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| Indian Real Estate Market |
The elections have a vital role to play in the actualization of these measures and plans though. Sandhir details the real estate slump and feels that the Delhi-NCR and Mumbai markets have been the worst hit ones. Sales figures have gone down almost every quarter as well. The economy has to get back on track with a growth rate of at least 8 percent and propelling the real estate sector with good measures is the need of the hour in this regard. According to Neeraj Bansal, Partner, Real Estate & Construction at KPMG feels that there have been positive initiatives taken at both regional and Central levels with regard to land pooling and affordable housing. However, all stake holders have not been taken into consideration and hence this has not been a cohesive process with markets receiving mixed signals from the Indian Government.
According to Navneet Bhadla, a Brys Group Director, there is a huge disconnect between industry bodies, the Indian Government and also developers and companies. There is no mutual progress being fast tracked. There has to be a particular connect worked out by the government for 2014 as otherwise the economy itself will remain in slump mode. Real estate trends now pan out in two distinct ways. Firstly, luxury market buyers and consumers are not really affected by market slowdowns or the slump and these individuals purchase on a personal needs basis. This segment is mainly governed by personal taste. Alongside, there are multiple developers who can offer affordable housing solutions to customers on the back of ever rising demand. However, governmental policies are still not supportive enough and developers need to be a part of the decision making process in order to fulfill this demand and keep prices low.
This alone will be the biggest mantra of this year as developers will go in for affordable housing ventures in tandem with governmental approval if a stable government is formed at the centre. The second half of 2013 has not seen any price increases and this trend is set to continue. The RBI has set on a quest to control market inflation but high levels of interest are proving to be a deterrent for buyers and this is one trend that may severely affect the real estate market in 2014, in the absence of governmental regulations and policies dedicated to affordable housing.
Information technology will be of much importance this year. The real estate industry value chain will witness the steady inclusion of IT based systems for management of processes and organizations. Alongside, ERP will be a growing trend among companies and builders in this sector with regard to allocation, management of inventories, accounts and finances. Technology will be taken up in a big way by consultants and developers and CRM basic solutions will flourish in the real estate space. RealtoExpress, SAP and Salesforce are set to become even more popular in times to come.
Real estate consultants will be more methodical and will use ERP and CRM among other technological tools which will facilitate better campaigns. They will receive higher returns on investment with these tools. Organizations will be able to maintain minimum sustainability levels on account of these IT solutions and tools. Lead conversions will be increased substantially as well owing to ERP or CRM solutions. Exit routes will be a major focus for real estate consultants and companies and these will provided to clients, customers and investors. Social media and other online platforms will witness the proliferation of real estate news and views along with project promotions.
There will be particular business networking sites where sealing deals will be a much easier process. B2C and B2B solutions will also make their presence felt in the market. There will be dedicated portals for concluding deals and these will be tailored for real estate professionals. Real estate information is another sector which will continue to be a minefield for consultants and online professionals. More and more real estate companies and developers will try to harness the powers of social media to connect with potential customers and investors. There will be dedicated IT networking solutions for such efforts. Alongside, real estate sectors may just get their own private communities and networks for business as this is slated to be a popular concept this year. This year will witness the slow death of emails as a primary tool for communication with social media outstripping it by a long mile. Deals will be closed faster owing to easier access and a larger customer pool to target.
Alongside, 2014 will see a shift in target consumers for most real estate companies. Companies will reach out to more and more young customers who desire connectivity, status, mobility and increasing comfort and convenience. The buyer profile will change dramatically as this new age group and buyer segment makes its presence felt in the market. This segment will generally comprise of people with high disposable incomes and this will lead to more big ticket projects in urban cities. All in all, the real estate trends of 2014 look promising to say the least but much depends on the actualization of initiatives and trends witnessed in 2013 which set the ball rolling for greater innovation in the sector. Here’s to a promising 2014 for Indian real estate!
According to Navneet Bhadla, a Brys Group Director, there is a huge disconnect between industry bodies, the Indian Government and also developers and companies. There is no mutual progress being fast tracked. There has to be a particular connect worked out by the government for 2014 as otherwise the economy itself will remain in slump mode. Real estate trends now pan out in two distinct ways. Firstly, luxury market buyers and consumers are not really affected by market slowdowns or the slump and these individuals purchase on a personal needs basis. This segment is mainly governed by personal taste. Alongside, there are multiple developers who can offer affordable housing solutions to customers on the back of ever rising demand. However, governmental policies are still not supportive enough and developers need to be a part of the decision making process in order to fulfill this demand and keep prices low.
This alone will be the biggest mantra of this year as developers will go in for affordable housing ventures in tandem with governmental approval if a stable government is formed at the centre. The second half of 2013 has not seen any price increases and this trend is set to continue. The RBI has set on a quest to control market inflation but high levels of interest are proving to be a deterrent for buyers and this is one trend that may severely affect the real estate market in 2014, in the absence of governmental regulations and policies dedicated to affordable housing.
Information technology will be of much importance this year. The real estate industry value chain will witness the steady inclusion of IT based systems for management of processes and organizations. Alongside, ERP will be a growing trend among companies and builders in this sector with regard to allocation, management of inventories, accounts and finances. Technology will be taken up in a big way by consultants and developers and CRM basic solutions will flourish in the real estate space. RealtoExpress, SAP and Salesforce are set to become even more popular in times to come.
Real estate consultants will be more methodical and will use ERP and CRM among other technological tools which will facilitate better campaigns. They will receive higher returns on investment with these tools. Organizations will be able to maintain minimum sustainability levels on account of these IT solutions and tools. Lead conversions will be increased substantially as well owing to ERP or CRM solutions. Exit routes will be a major focus for real estate consultants and companies and these will provided to clients, customers and investors. Social media and other online platforms will witness the proliferation of real estate news and views along with project promotions.
There will be particular business networking sites where sealing deals will be a much easier process. B2C and B2B solutions will also make their presence felt in the market. There will be dedicated portals for concluding deals and these will be tailored for real estate professionals. Real estate information is another sector which will continue to be a minefield for consultants and online professionals. More and more real estate companies and developers will try to harness the powers of social media to connect with potential customers and investors. There will be dedicated IT networking solutions for such efforts. Alongside, real estate sectors may just get their own private communities and networks for business as this is slated to be a popular concept this year. This year will witness the slow death of emails as a primary tool for communication with social media outstripping it by a long mile. Deals will be closed faster owing to easier access and a larger customer pool to target.
Alongside, 2014 will see a shift in target consumers for most real estate companies. Companies will reach out to more and more young customers who desire connectivity, status, mobility and increasing comfort and convenience. The buyer profile will change dramatically as this new age group and buyer segment makes its presence felt in the market. This segment will generally comprise of people with high disposable incomes and this will lead to more big ticket projects in urban cities. All in all, the real estate trends of 2014 look promising to say the least but much depends on the actualization of initiatives and trends witnessed in 2013 which set the ball rolling for greater innovation in the sector. Here’s to a promising 2014 for Indian real estate!
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