India's Real Estate Industry Market to Surpass USD 1 Trillion by 2030
Category : Real Estate Sector
Blog posted by : Admin / 12 Sep, 2022
The year 2030 is predicted to be a milestone for the Indian real estate industry. Its market size is forecast to reach USD 1 trillion*, which will eventually make up about 20%* of the country’s GDP. The upswing in the trend will be driven by more demand, a boost in government policies, and increased private and institutional^ investments.
Expected Rise in Residential Real Estate Demand
As per the Economic Times Housing Finance Summit, there certainly is a deficit in the residential realty market, which is unable to keep up with the demand. The urban housing requirement stands at 5 units/ 1000 people but currently the real estate market is down to 3 units/ 1000 people.
Sales are picking up especially in the residential sector, which saw a 71% YoY rise³ in the first quarter of this year when compared to the previous year’s Q1, on surveying the top cities of the country. Tier 2 cities too hold a lot of potential in boosting realty sales. With the continuing shift to urbanization, the number of construction projects in tier 2 cities is also seeing a jump.
With the country’s prominent real estate private equity investment manager announcing plans to help complete under-construction projects by arranging funds¹, a drop in home loan interest rates, coupled with one of the largest real estate companies increasing its equity stake, and backed by government initiatives for constructing affordable houses², prospects for the residential sector are looking up!
The Future of Commercial Real Estate
The demand for commercial real estate is expected to rise too. The majority occupiers in the past year were the IT industry followed by manufacturing companies.
In the past 5 years, the sector has also attracted more than USD 10 billion* in foreign investment. In fact, when it comes to FDI flow, the real estate sector comes in thirdº in the country.
The Real Estate Industry Will Provide a Much-Needed Boost to the Indian Economy
With an increase in the market size, the realty sector is also set to become a huge generator of employment opportunities for people while procuring products from other industries as well. It helps in reviving domestic demand and pushing the economy forward.
During the ongoing post-pandemic recovery phase, many industries are working towards building businesses back up to pre-COVID profitable levels. The real estate industry is already on a path of recovery. Builders, developers and contractors are not only racing to complete delayed projects but also announcing new ones.
The Implementation of ERP Software will Help the Indian Real Estate Industry Thrive
As businesses are being taken over by the next generation, there has been a marked increase in the number of developers adopting Real Estate Software to automate their process workflows. Any resistance to the adoption of technology has melted away in the post-pandemic world and digital transformation is accelerating the industry forward.
Real Estate software is playing a crucial role in the advancement of the sector as it transforms organizations into dynamic ones that can adapt with changing times and keep up with fluctuating demands. An ERP system creates a streamlined entity that functions as a single unit, as it:
- Centralizes all business data
- Automates manual processes
- Unifies all departments
- Provides data insights
- Visualizes real-time information
- Boosts communication among stakeholders
- Can be scaled and upgraded anytime
- Can be accessed anytime from anywhere
An ERP system allows intuitive flow of information among all real estate management processes, while increasing visibility for employees, customers, vendors, suppliers and the management.
The Undebatable Need for Real Estate Software: The Future of the Industry
Managing realty companies is no easy task. End-to-end management of all processes without any errors but with some foresight is not possible manually. To function as a future-ready company, investment in an ERP system becomes crucial.
Top Technologies Accelerating the Growth of the Real Estate Sector
To set up an intuitive and dynamic system, one needs to choose an ERP system that is integrated with the latest technologies as the goal should not be to only streamline processes but developers and builders need to think about leveraging their business data to gain a competitive edge in the future.
1. Data Analytics: Leverage Information to Develop Effective Strategies
One of the biggest advantages of working with Real Estate software is the Artificial Intelligence-driven insights it generates.
2. IoT: Internet of Things for Smart Management
The creation of an IoT network helps in integrating all devices and machinery onto a single system. The case is similar for API integrations that allow applications to run in unification with the Real Estate Software.
3. Mobile Apps: Easier Accessibility and Enhanced Flexibility
It allows realty companies to equip their field teams with Customer Relationship Management app, GPS tracking app, Employee Self Service app and more.
4. Voice Commands: A No-Hassle Hands-Free Experience
The incorporation of voice commands and voice assistants in the ERP system definitely enhances the user’s experience, who can access it through their laptops, tablets and mobile phones, providing increased flexibility.
5. Low/ No-code Programming: Added Value through Easy Customization
With low code and no code programming any lay person, without any technical knowledge can change or add features, debug and maintain them. A drag-and-drop set-up provides easy and quick customization without having to contact the customer support team.
Real Estate Software Will Bring a Positive Real Estate Sector Forecast to Fruition!
More demand and investment into the sector are definitely the most important factors driving the forecast for a successful market. At the same time, technology plays a vital role in propelling it forward. Without the Real Estate Software to predict and process the demand and deliver the final product, there would not be finished units to sell!
Timely delivery with optimal use of resources by a highly productive team that is already brainstorming effective strategies based on the next set of Artificial Intelligence forecasts, is the cog in the wheel that keeps the real estate industry moving forward.
References:
* India Brand Equity Foundation (IBEF)
^ Colliers India
º Department of Promotion of Industry and Internal Trade Policy (DPIIT)
¹ Stress Fund SWAMIH
² Affordable Rental Housing Complex (ARHC)
³ Anarock research
