The real estate market in India encompasses all the properties, land and water bodies that are commercially available for buying and selling in the Indian market. India being a country with a population of over a billion people, housing automatically becomes a primary issue and this is why so many schemes have come up, indigenous in their implementation but broadly targeting a growing necessity for all Indians, shelter. Real estate is one of the few areas which affects everybody, whether the poor man begging on the street or the wealthy individual flying first class in his private jet. We all need shelter, we all need housing. So the goal of real estate has always been to effectively and efficiently create, develop and market properties that can meet the housing and space requirements of the many. A good way to visualize the growth of this sector is to see how much it has changed over the past twenty years. The real estate market in India is no longer limited to builders and developers but investors, buyers and sellers as well. With the onset of technologies such as the web and mass media sharing platforms, transparency in the system of buying and selling has been achieved and which has been capitalized upon by people. Investments in real estate, such as buying land and buying and renting out apartments, houses and office spaces is widespread and common these days as it has shown great capability in making money as well as being a stable and reliable form of investment. With land prices only appreciating, there is good business available in this sector. Another change is in the form of real estate itself, while apartments were scarce twenty years ago, today we see condos, skyscrapers and flats everywhere. Developing properties that can house a large number of people in a relatively small area is key and developers are looking at building vertical rather than horizontal. Keeping these growing trends in mind, it is possible to hypothesize how the real estate market in India would have changed and developed in the coming twenty years.
With the advent of mass media platforms such as social networking websites and property related websites such as 99acres.com, magicbricks.com and so on, along with the continuous creation and development of accessing these platforms, information related to the real estate market in India can be easily requested and provided in a very short time. Information such as the availability of houses, plots or flats or land value or condition of existing properties can be sought for in real time. Instead of having to reserve an opportunity to check out a particular property, prospective buyers can look up the 3-D diagram of the property, have layered information on the type of material used, thickness, weight etc. and be able to assess its value through online services. In essence, you can shop for your new home from your current one.
Intermediaries of the real estate market in India
The real estate market consists of realtors, insurers, developers, builders and other professionals who provide services to the buyers and sellers of properties and land. These professionals will have to undergo a change in their mode of operation to still be able to provide efficient services. Although technology would have reached a stage where the buyer or seller can do business without the involvement of these intermediaries, it would be difficult to conduct business without them especially with the aspect of a lack of human to human interaction. No one would like to trust a computer program over a true professional in areas such as price quotation.
The real estate market is already ripe with investment opportunities in today’s world. Right from buying land to renting houses to building them, investors, developers and a lot of individuals have been able to capitalize on the demand for more space. As already mentioned before, the growing demand for more land area coupled with the ever increasing land prices mean that this sector will witness a tremendous growth in the value of investments as well as in the opportunities for investing. This would mean that trading, buying, selling, renting and other transactions would become more streamlined and faster and companies would market websites, applications and hire professionals to help assist in this process. This is further emphasised by the notion of creation of a common platform to conduct these transactions and many professionals have pointed out that a Sensex for the real estate market is not far off.
Laws regarding the real estate market
With so many foreseen changes waiting to occur on the real estate market in India, there will also definitely be a change in the laws applicable to the market itself. With the perceived ability of individuals using web based platforms for conducting and transacting businesses such as buying and selling property, leasing and renting and so on, stricter regulations on the type of property, period of leasing and so on can be expected. Contrarily, laws not permitting an individual to undertake financial transactions on real estate without having a license or authorization can be expected to be relaxed, paving the way to more customer involvement in the process. This doesn’t mean that lawyers, appraisers and other legal professionals hired for their expertise in this market will lose out, in fact with changing laws and regulations the need for professional legal aid is only expected to rise.
Increased customer involvement
A lot of the home buyers who are used to the online home-searching experience are expected to become the new home sellers. Upon the realisation that the commission for intermediary agents can cost upto as much as 6% of the selling price, they will start to shop around and will require an agent-comparison tool that provides them with selection, convenience and transparency as well as savings which is usually provided by most talent recruiting platforms.. Rather than calling agents and determining their fee and services, customers will look for a base that allows them to streamline the whole process and also gives them all the necessary data to pick and select. What this does is that it removes the awkwardness of bargaining and haggling besides mentioning that a few sellers may not even know what services they can negotiate on.
Real estate as a sector has been around for decades and looks to be present and dominant for a few more. With more and more individuals involving themselves and their businesses with realtors, builders and developers, the sector is witnessing an economic boom fueled by the growing needs of the ever growing population for better homes, offices, malls and other structures. What once used to be the monopoly of builders, developers and agents, the real estate market has witnessed increased transparency and streamlining that has allowed more and more people to try their hand at this sector. Projections for the market are varied and diverse but most people if not all do agree on one common aspect and that is that the sector is witnessing growing trends in all aspects and that growing trend, is here to stay. As builders like to say, the only way is up.