What is the future of real estate in India?
The real estate sector is leveraging IoT and AI to cater to the niche segment of smart homes
Being able to own a home is one of life’s greatest joys as it is not just an aspiration of many, but also a sign of overall personal and social growth. It is not just residential property though, that garners interest these days. Whether it is commercial or hospitality-based, the realm of real estate is full of endless possibilities.
The real estate market is perhaps, one of the fastest growing in the world owing to constant demand for better residential, commercial, as well as hospitality spaces. As the world continues to grow and change with times, so do their requirements in terms of housing, businesses, and more.
They seek the best for themselves, and the ability to show it through the place where they work, reside, or just enjoy. Real estate is indeed headed towards an all-inclusive technological upgradation in the form of home automation via Internet of Things (IoT), Artificial Intelligence (AI), and other such innovation judging by latest developments in this field.
Investment in Indian real estate sector
The real estate market in India has incurred significant investment opportunities since the past decade, driven by high growth due to rising demand for residential as well as office spaces. In 2019, the market attracted up to INR 43,780 crore (USD 6.26 billion) in investment. The retail segment witnessed private equity (PE) investment worth USD 1 billion last year.
Institutional investment was registered at USD 712 million by the end of March 2020 quarter. Apart from these lucrative investment opportunities, another major factor that is driving the growth of real estate in India and touted to be its future is the home automation segment.
Current trends in Indian real estate market – Coronavirus pandemic and the human element In India,
the real estate segment has witnessed its share of ups and downs, but its growth has always been visible. What was once considered a market reserved for the elite is now witnessing disruption not just from urban masses, but those from humble backgrounds as well owing to easier access to loans, improvement in standard of living, and increase in disposable income.
Most of one’s aspirations are connected to their basic needs like shelter, which might even make real estate the glue that holds everything else together. As previously mentioned, when it comes to the Indian mindset of property ownership, it is always driven by the ‘Mera apna ghar’ (my own home) dream.
It not only highlights their aspirations, but a constant need to fulfil a lifelong objective, something that can be a part of their personal growth story while also being a collective human vision. This is one of the biggest reasons why real estate in India is not just about houses, but also the different memories that are associated with them.
The human element in real estate can even introduce new trends based on the specific demands and needs of each individual. Most people in the country often migrate to metropolitan cities for better prospects and career opportunities; and finding a place to stay is the first thing on their mind.
This is where real estate can fulfil such needs by reaching out to those who are constantly on the move. Apart from that, some unexpected and unprecedented situations can also quickly shift trends in real estate even in the most stable times, which can be witnessed during the ongoing coronavirus pandemic.
Since March 2020, when the nationwide lockdown was first implemented, the need for better housing was highlighted amidst all the chaos created by the sudden announcement. It became evident that proper housing and home-related facilities meant better safety and security during such times.
The Covid-19 pandemic managed to bring to light that more people are now looking for spacious and smart homes that can make their lives and overall household management easier and stress-free.
Technology-driven evolution – The future of Indian real estate
The real estate market in India is currently witnessing a steady rise in integration of technology and tech-enabled innovations that are further contributing to its growth. One of the most prominent developments is that of home automation, the perfect mix of technology and real estate.
There are several reasons why home automation technology can accelerate growth of the overall real estate sector; let us discuss some of them.
Smart homes can attract more investment and buyers
Smart homes are not just another feather in the cap of real estate, it stands to be a reality within the next decade if current trends are anything to go by. Automated real estate spaces can attract lots of investment opportunities as well as future-oriented eager buyers.
Increase in property value
A smart home has more value in the market as it comes with integrated systems that save time, increase efficiency, and reduce labour. An automated property is more likely to be worth more than a standard property.
Easier to sell and resell
One of the biggest worries of property owners lies in the fact whether their space is worth its market value or not. With automation, that will no longer be a problem as the demand for such spaces will only increase over the years. Be it selling or reselling, owners of smart homes and smart property will have nothing to worry about in future.
As the aforementioned growth projections and trends suggest, the future of Indian real estate not only looks bright, but also stands to benefit from technological innovation within this space, especially during unpredictable times. Therefore, it can be said that automation and smart properties with a touch of human emotion are the future of real estate in India.