We are Wealth Clinic Team
The real estate industry used to be broken, unstructured, and unorganised, but now it is full of new ideas, innovative solutions, and efficient practices.
Today, the Indian real estate market is at an exciting point. It has been through many changes in the last few years, including the introduction of GST, the demonetisation of money, the RERA law, and the COVID-19 pandemic. These changes, measures, and scenarios have caused this industry to change.
That said, the real estate space did an excellent job of adapting to these changes. An industry that used to be broken, unstructured, and unorganised is now full of new ideas, innovative solutions, and efficient practices.
When 2022 starts, it is safe to say that the Indian real estate market is now in a “new form.”
It’s time for a new way of living in a world of homes.
Today, the real estate market has opened up a wide range of opportunities and new assets, like student housing, co-working, and commercial & residential property. There is more openness, reliability, and accountability now than a few years ago.
These changes have helped build an ecosystem where investors feel safe putting their money in real estate assets in the long run. However, if you look very closely, you will see a big difference in the whole industry. The Indian real estate market has a lot of different views for people who buy and sell homes there.
For example, the industry got about $51.5 billion in FDI in 2021. There are still a lot of new and even big-scale developers who have a hard time getting the money they need for new projects.
Other people think owning a house isn’t a good investment because the return (rental yield) isn’t very good.
No matter how big their city is or how much money they make, many people still think that owning a home is a dream come true. If real estate weren’t a good investment, people wouldn’t spend their life savings to buy a house because they wouldn’t think it was worth it.
Increased attention to the real estate industry
The real estate industry has also seen a lot of new frameworks, bodies, and rules, like RERA – the Real Estate Regulatory Authority. This project was started for the sole purpose of giving homebuyers a straightforward experience.
It was set up to make sure there was a quick record of complaints and a quick resolution. The main goal of RERA is to make sure that everyone can see what is going on and that they are safe. The central and state governments have also launched several projects to improve the real estate market.
Though they have a good goal, sometimes they seem like another layer of litigation. The issue at hand often gets more complicated than easier to solve.
Governments are also working to speed up the completion of many projects that have been stalled or have been put off for a long time. There are measures and schemes like ESOPs that help people get affordable housing and single-window clearance systems that make it easier to get things done quickly. On the other hand, builders and developers often have a hard time getting these benefits.
When you look at the real estate market in cities like Mumbai, New Delhi, and Bengaluru, you can see that the prices for homes can be very high. Because of how great and unique the property is, the country’s financial capital rental prices are out of this world.
Despite problems, the growth path looks good.
Despite these gaps and problems, the Indian real estate market grows stronger with each passing year. The number of issues tends to go down, and new, more dynamic solutions replace old ones. In the modern world, developers and builders take advantage of technology and modern ideas to develop models, plans, and futuristic designs.
You can make it look bigger and more open when you build something. These styles are becoming more and more popular.
Concepts like student living, co-living, data centres, and many more will take centre stage in the next few years. Builders are even looking for ways to build homes that are more cost-effective to keep their prices competitive. Another goal the whole industry is working together to reach is affordable housing.
Another thing we’ll be looking at is how to build high-quality homes. Quantity was crucial at first, but now buyers want world-class amenities at reasonable prices. Investors who want to make money in this field should look into new types of assets like ResiTel and REITs.
Some Commercial and residential property, for example, is a good investment because it’s built well, has good rental income, and has no maintenance costs. With REITs, you can invest in properties on the market and get dividends backed by a real thing.
The real estate market may not be perfect, but it has always shown a desire for growth. In 2022, it will keep moving toward maximising its potential as a business.
Comments