Ashwinder R Singh, CEO, Residential, Bhartiya (City) Urban, stated, “The current Indian real estate market is experiencing significant growth. This year, India's top seven cities are projected to sell approximately 500,000 units. In Quarter 3, there was a 36% year-on-year increase in sales from 88,000 to 120,000 units. New launches have increased by 25%, with Mumbai and Pune contributing to half of all sales. Bangalore alone is expected to reach 70,000 unit sales this year.”

Navin Dhanuka, Co-founder and MD & CEO, ArisUnitern, commented, “The outlook for the real estate market appears highly optimistic. However, examining it closely, reveals that recent price increases are not true increases, but corrections for long-overdue inflation adjustments. Over the last decade, prices failed to keep pace with national inflation rates. The next two to three years will be crucial in determining the true growth of the real estate market and how prices continue to change. Construction costs also play a significant role in evaluating this progress. Following fundamental financial shifts due to significant events like ILFS in 2018, alternate investment methods have become necessary—leading to new creative financing sources. Private equities and tech-based platforms are growing in prominence as crucial funding providers. In essence, alternate investments are shaping the future by supplying essential financial support to the real estate sector while taking into account diverse income plans.”

Speaking about the property management services, and its potential to improve productivity, profitability of real estate projects Pradeep Lala, MD & CEO, Embassy Services Pvt. Ltd. articulated, “As a subsidiary of the Embassy Group, we maintain a strong presence in over 14 states, managing 130 million square feet with a team of 15,000 individuals. The suite of technology tools help facilitate all aspects of construction and property management. For example, IoT-based sensors for smart metering and asset tracking, specifically targeting HVAC systems minimize high energy consumption. The real-time data management systems enable predictive maintenance and optimal uptime. All these measures and more can add to the bottom-line of the developers and these services will find more footing in the industry going forward. ”

Navin Dhanuka agreed that we must acknowledge potential challenges and risks and accordingly anticipate solutions. “Recent global events, such as tensions with China and disputes between Russia, USA, Israel, etc., remind us that we cannot overlook the world economy's impact on our own business. Fortunately, our economic strength has improved, but, land prices have increased significantly, posing challenges in acquiring quality land. Past experiences, such as the fluctuation in property prices, serve as cautionary tales. To maintain stability, we must avoid expecting drastic price increases and carefully control new developments and launches. The decrease in residential housing vacancy from 2.5 to 2.3 years is encouraging; however, absorption rates must remain higher than new launches to ensure continued growth.”

Ashwinder R. Singh agreed, “Sticking to industry fundamentals will benefit us as the economy continues to prosper. To support financing, government policy improvements are necessary – for instance, digitizing property systems more efficiently. Ensuring transparency and minimizing bureaucratic stoppages during projects is crucial for continued success not only in 2024 but also beyond that year.”

Pradeep Lala added, “In the real estate sector, property management industry serves as an enabler for developers and the off-taking segment. Over time, I have observed various real estate asset classes, such as commercial offices and co-working spaces, with distinct scopes and expectations. As service providers, our responsibilities have increased significantly.” 

Private equities and tech-based platforms are growing in prominence as crucial funding providers. In essence, alternate investments are shaping the future by supplying essential financial support to the real estate sector while taking into account diverse income plans.- Navin Dhanuka, ArisUnitern.

The suite of technology tools help facilitate all aspects of construction and property management. Property management services can add to the bottom-line of the developers and these services will find more footing in the industry going forward - Pradeep Lala , Embassy Services Pvt Ltd.

Innovation continues to drive both survival and increased profitability in the market. NCR's real estate prices may not represent the country as a whole, but southern states like Hyderabad and Bangalore are leading in capital growth and decision-making- Ashwinder R. Singh, Bhartiya (City) Urban.

This article was originally published in Realty+ on Thursday, 11 Jan, 2024.