Real Estate: A sneak peak into the future
India’s real estate sector has always been a hard-nut to crack. It is nothing short of a rollercoaster ride with its unexpected rise and fall, for anybody who insists to be part of this landscape. One but not deny accepting the influence the technology is exerting from the recent past. What the sector holds, as we sneak into the future is something that this article tries to unravel.
The latest statutory moves that the government has taken have auger well for the sector, with some minor resistance here and there. With the introduction of GST (Goods and Services Tax), helped in simplifying the taxation process. It defied the existence of multiple taxes, a burden borne by both buyer and seller thus far. The clarity brought forth through the introduction of GST is touted to go a long way, benefiting the real estate sector in more ways than one.
Newly emerging economies are predicted to broaden the bandwidth in terms of choices offered and largely the sector being construed to be a viable investment destination. Rapid urbanization offers an opportunity for the investors to reap the consistent return on investment as supposed to riskier alternatives such as equity. Although, these rapid developments in the sector are not bereft of certain fundamental risks that naturally accompany nascent advancements. Indeed, there will be a new set of risks that unfolds, while witnessing exciting developments.
Arguably change is the only certainty, insofar as technology is concerned. It is natural to assume that technology will certainly affect some broad-stroke changes in the sector, which otherwise was at the comfort of its simplicity. Only time will have to suggest, whether the impact of technology on the sector, has something good to offer.
With fast progress in data analytics and data mining, advertisements in real-estate have dawned a new face. Here, the advertisement does not stay as an act of pelting stones in the dark. Instead, it will be targeted and tailor-made to appease an individual’s choices and likes. This targeted approach to the advertisement is significantly fed by a large swathe of private data available for purchase in the digital market. Its sustenance is largely a function of not-so-strong privacy laws in our country. Whether will it stay as is? Is a hard guess as we look into the future.
Also, the improvements witnessed in imaging and photography have aided online marketing for the sector. It has become that much easier for converting a prospective client, with the application of virtual reality and other tech-enablers alike. This will substantially help the buyer to have the necessary clarity over what one is venturing to acquire. The seller is rescued from having multiple visits to the site. However, the uncertainty in the sector has found its unwavering ground. Moreover, the persons whose interests will be hurt with fast-approaching changes finding its steady grips will bring in necessary resistance to preserve the prevalent status quo in the sector.
There is a strong attempt to re-define the real-estate sector. The prevailing definitions are running the risk of being obsolete in the near future. With the vast acceptance of certain unconventional businesses like Airbnb, people started to look at the sector with a different prism. This trend will certainly dispel the stereotypical assumptions about real-estate and its type-cast utility. This will bring in much-needed flexibility, insofar as using a piece of real estate for reaping more benefits. With the gig economy and versatile gen-x and gen-z, the primitive and nomadic lifestyle is prioritized over the sophisticated dwelling, indeed serving pecuniary practicality too.
Also, the clarion call from our prime-minister for “Housing for All” has lent credence to people’s aspirations to own a house. Provisioning competitive home loan rates will lend a helping hand for people’s aspirations to buy their own house as supposed to resort to renting. It is indeed anticipated, that Indian real estate will soon turn out to be a cradle of opportunity attracting global capital. Thus one could safely assume to witness significant and substantial growth in the foreseeable future.
There is some semblance of the balance struck in the sector with the introduction of the RERA and GST. Moreover, the importance bestowed on the necessity of affordable housing from the central government will certainly bode well for/by the sector insofar as creating more employment opportunities especially in the construction verticals of the sector. Thus substantially contribute to India’s GDP. Thus ensuring a bright and prospective future for every stakeholder.