Reflecting upon India's Real Estate

The Indian real estate market is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5 to 6 % to the coun­try's GDP. It is also the second largest employer after agricul­ture and slated to grow at 30% over the next decade.

AFFORDABLE HOUSING, HOUSING FOR ALL INITIATIVES:

Affordable housing is a very generic term and may differ from city to city. Affordable homes are defined on three parameters such as buyers' income levels, ticket size of the apartment and of course the price. This segment has significant shortage of sup­ply, approximately 10% less than demand. Hence it is incentivis­ing for developers to tap the gigantic demand.

DRIVERSFOR AFFORDABLE HOUSING:

A prospective buyer's purchase decision is influenced by a host of factors ranging from price points to location. Due to the growing awareness among consumers, choice of facilities and amenities are also found to be important determinants.

REAL ESTATE (REGULA­TION & DEVELOPMENT) ACT, 2016 (RERA)

The implementation of the Act, in its entirety, will have a far-reaching impact on the real estate sector. The Act will be a game changer for the sector and will transform the entire para­digm in which the sector oper­ates and the manner in which different stakeholders interact with each other. The Act will require developers to recalibrate their business model in sync with the regulation. Confidence flowing into the sector and from the provisions of the Act will also have a rub off effect on institu­tional funds and banks, thus ena­bling them to lend to the sector. The access to funds at compet­itive rates, in contrast to the high-lending borrowing avenues available today could lead to rationalisation of prices within the sector thereby making it a win-win situation for all the stakeholders. However, the suc­cess of the new rule of the game will lie in the necessary systems and processes across states so that the Act can be implemented in full letter and spirit without causing much distress among the relevant stakeholders.

MAKE IN INDIA

With the focus now turning towards "Make in India", the time is ideal for nationwide col­laboration and to attract foreign investments. As goes a popular sentiment "There has never been a better time to 'Make in India'", ultimately it's now or never.

THE EVOLVING WORLD OF BROKING

When I started as an executive for residential sales almost two decades ago the real estate busi­ness was unorganised, frag­mented and sans fundamental best practices. There were no knowledge based programmes to impart skills. Self-motivation, self-learning, an aggressive mindset and rock solid focus were some of the key values for survival.One needs to be extremely passionate, persever-ant, patient and have the right attitude to stay afloat during bad times. A good broker must like the job. For instance, cracking deals gives me a huge kick. The win gives me an adrenaline rush and that's what keeps me going every day.

But things are changing for the good.The industry is witnessing a paradigm shift with an increasing number of women pursuing a career in this field. It is becom­ing organised, the government is bringing in many policy changes and I firmly believe that this is the second innings for Indian real estate.

The real estate industry in India is slated to be a US$ 180 bil­lion opportunity by 2020 accord­ing to the India Brand Equity Foundation (IBEF) August 2015 Report. Basically, by 2022, the employment of real estate bro­kers and agents should increase by at least 11 per cent.

Consolidation is on the anvil and one needs to under­stand that real estate encom­passes many different disci­plines and offers a plethora of opportunities. This is by far the best time to begin a career in real estate.All in all these are exciting times for the real estate sector and with the slew of government reforms we are definitely enter­ing a new era. Over and above the economic parameters in gen­eral are also shining. India is projected to grow at a stunning rate of 7.1%.

Going forward if the economy continues to stay robust the cre­ation of 20 million new urban homes and a house for every family might not be a distant dream any more.

The author is Director - Chennai, Knight Frank India.