A country’s growth is not when its metropolitan cities grow taller but it can truly be determined when smaller towns, villages, and second and third-tier cities see a spurt in the construction of real estate. India is achieving a milestone as they celebrate their 75th year of Independence. The highlight of our country’s growth is this – the stellar rise of India’s towns and villages which is being strengthened by robust infrastructure. Also, utmost utilisation of the real estate market is taking place because of the rising demand from citizens.
India is among the fastest-growing major economies in the world and the real estate sector is the second largest employment generator, and third largest sector in terms of FDI flow and also spurs the overall economic growth. The real estate market is poised to touch Rs 65,000 crore by 2024 and by 2025, this sector is expected to contribute to 13 percent of the country’s GDP. The real estate sector is clearly demonstrating a growth trajectory and is in fact galloping into its next journey. Over the months, the real estate sector is constantly evolving with innovative solutions across residential, commercial, and retail projects.
The Covid-19 pandemic changed the dynamics of the way people work and stay across the nation. As normalisation is streaming back into our lives; what’s pertinent is the fact that urbanisation is not restricted to metropolitan cities anymore. Fully sustainable multi-storeyed buildings, fully-secured gated communities, well-designed commercial complexes, and malls are what people from tier-2 and tier-3 cities and towns are also aspiring to adopt. With a hybrid mode of work, there has been a migration of skilled workforce to satellite cities, which has further fuelled demand for Grade A commercial spaces in these cities as well.
The Indian real estate industry has been agile and resilient to meet the evolving requirements and an array of asset classes have been created and are emerging. This positive evolution has further been established with trends having a strong focus on flexibility and catering to specific requirements of end-users and evolving homebuyer demands. Changing demographics, lifestyles, and developing businesses is what has given rise to this segment.
These relevant factors have played a major role in creating a demand for emerging asset classes. For instance, India’s biggest and most expensive property market of Mumbai recorded among the highest sales in terms of deal registrations and collection of stamp duties; in the last one decade. For instance, in June, the total office space leasing jumped by 1.5 times across seven cities, including Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad Pune, and Kolkata, to 5.8 million square feet.
The environment we live in today comprises a mixed bag of various requirements such as a space for a start-up, an office space distinct to the character of a home, an accommodation for the aging population, or even a growing interest in students to get a higher education. The amalgamation of environment and open spaces, infusing green cover with residential spaces is not just the need of the hour but also a demand from homebuyers who have become environment-conscious.
The emergence of proptech — buying and selling of property driven by technology — has been instrumental in the entire process that has eased the experience. This is evident as technology companies had a share of 35 percent in the aggregate market leasing activity in June. Now, this is promising. We are certain that the momentum to invest in residential and commercial properties and real estate industry at large shall bear fruit in the future too.
Also Read: The Great Indian Migration to Suburbs
In the multiverse of India’s real estate sector, there are newer solutions that are rising and are likely to grow stronger over the years. The pandemic gave rise to a concept called work from home. As people are slowly but steadily coming back to work, companies and corporates are still careful about calling every employee to the office at the same time. This has prompted the culmination of residential properties into spaces created for setting up homebuyers’ personalized offices. Perhaps that is one of the explanations behind the re-emergence of verandas and balconies which give buyers that extra space where the harmony of office desk surrounded by plants can be enjoyed sitting at home. The work-from-home culture has also sprung the usage of the internet. We developers expect this to be a long-term feature and are fully committed to bestowing it to the citizens.
(By Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Ltd)