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Real Estate Business Review | Wednesday, March 22, 2023
The consumer housing market startups addressing construction needs have emerged in recent years, providing a variety of options for renting, buying, and investing in commercial and residential properties.
FREMONT, CA: The Indian real estate market has seen significant growth and development in recent years, with many new projects and initiatives being undertaken by both the public and private sectors. The government's push for affordable housing and infrastructure development, coupled with rising incomes and urbanisation, has led to increased demand for real estate in India.
In January of this year, India overtook China as the world's most populous country, with an estimated population of fourteen billion by the end of 2022, a little more than five million more than China's. In India, both urban and rural populations are steadily increasing, putting tremendous strain on city infrastructure.
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In today's context, one of the three trinities of roti, kapda, and makaan (food, clothing, and shelter) is critical because it lays the groundwork for an individual's economic well-being. A sizable portion of the Indian population does not own a home, and the urban shortage is expected to reach 34.1 million units by 2022. It was 18.8 million units in 2012 and is expected to increase at a compound annual growth rate of 6.6 per cent over the next ten years, until 2022. As a result, there is an urgent need to close this widening gap, and one method of mitigation calls for greater technological use in the real estate sector.
An increasing number of developers are implementing new-age tools in construction, ranging from pre-cast concrete to drone project monitoring and ERP system implementation. It increases efficiencies all through the entity, allowing them to improve delivery speed, manage data in real-time, and implement corrective measures as soon as possible. Precast and pre-engineered technologies are increasingly being used in large urban population metros such as Mumbai, Bengaluru, and Hyderabad, where all construction elements such as slabs, tiles, windows, doors, and so on are fabricated in off-site manufacturing units using computer-based systems. This not only improves finish quality and standards, but also helps to reduce material waste, requires less manpower, and reduces overall construction costs significantly.
On the digital initiative front, 3D modelling facilitates better project visualisation once the concept has been established, as it provides greater clarity to all stakeholders and reduces ambiguity. During the Covid years, certain developers made extensive use of technology, developing virtual sales and marketing strategies.
Furthermore, the introduction of drones has enabled better real-time monitoring of projects and offers a slew of benefits ranging from ensuring accuracy to better marketing of the project by providing customers with an immersive experience.
During the next decade of rapid growth in India's real estate, technology will play a critical role in bringing efficiency and transparency to the construction process, mitigating the challenge of construction manpower through increased mechanisation, and amplifying overall end-user interfacing in unprecedented ways.
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