Tanuj Shori, the Co-Founder & CEO at Square Yards, has opined that developers are steadily adjusting to changing real estate trends. He has opined that after the implementation of RERA, developers have turned more cautious regarding supply and are emphasizing upon completion of existing projects prior to launching new ventures. Affordable housing has also received a major boost due to tax sops and Government initiatives under the target of Housing for All by 2022.
Homes across most Indian cities are now cheaper to own than before since prices have either fallen or remained steady. The price rise has been lower as compared to overall consumer price inflation levels. Lower GST rates of 1% for affordable housing and 5% for other types have also helped in this regard. Lower home loan interest rates and EMIs have spurred demand to an extent although most buyers still wish for ready to move units as compared to under construction units unless the real estate developer is reputed, has the financial strength required and a good track record of timely delivery.
The real estate industry has been impacted by several factors including liquidity crunch due to failures of NBFCs and also stricter fiscal and regulatory aspects for builders along with stalled projects, lower sales figures earlier and other aspects. Prices of housing have been coming down or remained the same while construction/input costs have increased for builders at the same time. In spite of these hurdles, overall demand has not come down. Instead, it has shifted majorly towards builders who are reputed, credible, trust-worthy and those who are developing and marketing projects in sync with the pulse of customers at the moment. This is a key trend throughout almost all industries and not just real estate.
A closer glimpse into the Indian auto industry will reveal that companies like Kia Motors and Hyundai had their own share of issues relating to demand. However, they realized that newer launches would bring in the success they craved along with offering more value for money for customers. They were two of the fastest companies to respond to changing market trends. As a result, they have come up with a refreshed cycle of products which are doing well and have been boosted by endorsements from celebrities on their marketing campaigns which have given excellent returns overall.
There is a need for all industries to swiftly adapt to changing customer and market dynamics for future growth. Demand has shifted majorly towards affordable housing which comes with timely delivery and better quality. Indian buyers are now looking for quality, credibility and contemporary flavours more than before along with overall value for money.
Shori has delineated the process at Square Yards where the pulse of the market is always followed above all else and sincerely towards building a project portfolio which continually evolves while adhering to the needs of the day for homebuyers. Thereafter, the company analyses the overall investment and value for money dynamics for projects to make sure that once tapped by the right marketing campaigns, demand which is pent-up for housing units provides good results.
There are extensive campaigns targeted for specific audiences and geographical zones which talk about the lowest prices possible, the best possible housing units in terms of quality and excellent after-sales support and service. This information is tapped across markets that Square Yards functions in, according to Shori. At times, there is some glamour put into the mix as he states, citing the example of the brand’s association this season with Housefull4 and how customers got an opportunity to spend Diwali with Akshay Kumar at the iconic star’s home itself. Shori also talks of how real estate in India is steadily chugging uphill and a tried and tested approach towards evolution and tapping the right market campaigns will enable businesses across segments carve out a bigger geographical and mental presence as far as the home-buying audience is concerned.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.