In an exclusive interview, Aman Gupta of RPS Group talks about the current state of the real estate sector in India and shares his views on how can the sector adapt to changing consumer preferences.
In light of the prevailing market conditions and external factors, we anticipate a growth in the realty sales in 2024 driven by urbanization, positive demographics, and robust infrastructure. However, obstacles like supply chain interruptions, rising interest rates, and inflation could pose challenges that need to be effectively addressed by the industry, says Aman Gupta, Director of RPS Group.
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In an exclusive interview with FinancialExpress.com, Gupta talks about the current state of the real estate sector in India and shares his views on how can the sector adapt to changing consumer preferences. Excerpts:
What is the current state of the real estate sector in India, and what are your projections for its growth in 2024?
The real estate industry is now in a state of moderate optimism due to the volatile market conditions. Although there were difficulties during the pandemic, signs of recovery are already visible in the sector. Factors such as rise in property values, high rental returns and revival in housing market are some observable signs of favourable prospects. Based on the current market trends and the external environment, we expect sales to improve in the year 2024 fueled by trends such as urbanization, favorable demographics, and sound infrastructure. Nevertheless, challenges such as supply chain disruptions, increased interest rates, and inflation might act as stumbling blocks that the industry has to manage well.
In your opinion, what are the most significant challenges and opportunities the realty business may face in the coming years?
Of all the factors that this industry may encounter, the most important one is the necessity to build and construct environmentally-friendly residential and commercial facilities. With consumer awareness increasing in this regard, developers have to start incorporating pro-environment practice, energy-efficient designs and materialistic changes to their projects. However, this shift offers a prime opportunity which can be exploited by the real estate companies to stand out from the rest and entice consumers who are conscious about sustainable buildings.
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Given the growing emphasis on sustainability, what role can the real estate sector play in promoting environmentally-responsible practices and contributing to a more sustainable future?
It is important for the real estate sector to embrace sustainable activities in the development, construction and management of buildings. Hence, by following green building standards, using technical standards of energy efficiency and renewable materials, developers can minimise their carbon footprint. On the same note, the industry can foster inclusive social sustainable capacity by providing the aesthetics of green space and smart city layout, which has superior walkability.
What are the best practices for ensuring regulatory compliance and effective risk management in the real estate sector?
It is critical to mention that the approaches addressing the need to ensure effective regulation and risk management should encompass several aspects of the real estate industry operations. Some of these measures include conducting rigorous due diligence, keeping documentation clear and accurate, ensuring compliance with zoning and construction laws, and having internal controls as well as auditing procedures within the organization. Also, the real estate companies need to invest more in staff development and training so that individuals can regain awareness of the ever-evolving laws and rules of the society.
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Are there any notable economic or market trends that real estate investors should be mindful of as we approach 2025?
It is possible that by 2025 there are certain significant economic and market indicators that the real estate investors should consider. They include the possibility of movements in the rates of interest, changes in the international flow of funds, and political resolutions affecting real estate markets. Also, there’s an emerging role of technology in the industry and increasing uptake of proptech solutions that is likely to shift the future of real estate investment opportunities.
How can the sector adapt to changing consumer preferences and the evolving demand for smart and sustainable living solutions?
There is a growing need for the real estate industry to incorporate the element of innovation and technology due to the trends exhibited by the consumer market as well as the growing need for smart living solutions. This includes the use of smart technologies for the integration of home automation, energy-effective equipment, and control systems that improve comfort and home automation while decreasing the utilization of resources, energy and time. On the same note, developers should consider mixed-use developments that entail residential, commercial, and leisure facilities so as to co-create a harmonious basic community with efficiency of use and a reasonable usage of resources.
What role should the government play in supporting the growth and development of the real estate sector while balancing regulatory oversight and market dynamics?
An important aspect is the involvement of the government in ensuring development and growth of real estate while affording the market forces considerable room in its operations by way of regulations. So, some of the general and specific regulatory policies that promote affordable housing schemes, fast track approvals for construction and development, and encourage the use of sustainable natural resources to foster industry growth can be effective. At the same time, it is equally crucial for the government to introduce such policies that would contribute towards increasing transparency, safeguarding consumer rights, as well as exercising fairly moderate competitive policies in the market. A balanced execution of these strategies can support the establishment of a healthy and more productive real estate environment that can produce value for all the players in the industry.
