Trends seen in 2019:
One of the starkest trends has been the gradual shift towards integrated residential properties in gated communities that offer an array of lifestyle amenities. This has happened because of a couple of reasons, primarily the increasing level of exclusivity and convenience these projects offer. This, combined with the prevalent affordable housing movement, has made available to customers a growing inventory of homes that combine the advantages of affordable homes and gated living. The trend has entered a virtuous cycle, where rising demand has fuelled more residential projects, which in turn keep the trend alive.
The other dominant trend has been the liquidity crunch in non-banking finance (NBFC) and housing finance (HFC) sectors, which is putting stress on the supply side dynamics. The 25000 crore fund the government has established is a part of the remedy, and should infuse badly-needed liquidity in the industry and restart stalled housing projects.
I believe developers can aid the situation by providing timely and honest appraisals of the market conditions. The government too can help, by providing incentives to corporates venturing out into peripheral areas, where the majority of the affordable housing stock is required. Not only would this improve productivity, but also would renew the industry’s appetite for investment and risk thereby creating myriad opportunities along the way. The Real Estate sector is one of the biggest contributor to GDP and certainly one of the biggest employment generators. All it needs is a little positive momentum!
All our professional credibility is linked to the quality of the final delivery. Developers should focus on delivering projects within the stipulated time frame. The moment they fail to do that, whether it is because of legal challenges or financial obstacles, consumer trust is irretrievably lost. This doesn’t just affect the guilty brand, but spoils the reputation of the entire industry. We have to do all we can to retain our consumers’ trust, which also involves regular and clear communication.