By: Jackbastian K. Nazareth, CEO Puravankara Projects
Track2Realty: The past decade has witnessed a period of economic transformation of the Indian real estate industry. After the global financial crisis, the pace at which the industry has bounced back is magnificent. Our real estate ecosystem typically comprises of architects, developers, Government & regulatory authorities, financial institutions, private equity players, other funding agencies, brokers, property consultants and of course most importantly the buyers. For such an ecosystem to remain successful over a long period, it is imperative that all the key industry participants are on a level playing ground despite the changing dynamics of the industry.
The dynamics of the real estate industry are governed by some extrinsic and some intrinsic factors. The extrinsic factors would be land, investment, innovation & technology, regulation and infrastructure, whereas the intrinsic factors would be transparency, affordability, sustainability, image and professionalism.
Over a period of time transparency of India’s real estate markets are improving and this is largely due to the data availability on market fundamentals, the regulatory and legal environment and governance of listed entities. The emergence of the Information Technology industry has also contributed significantly to the growth of the real estate industry in India, primarily South India.
Professional management of real estate companies encompass a gamut of services which includes positioning, zoning, promotions, marketing, facility management and finance management. In our business of developing and constructing real estate space, a developer’s constant endeavour should be to maximize value to all our key stakeholders for every living space delivered.
Towards this goal, a unique multifaceted delivery model should be followed that focuses on different aspects of execution that doggedly puts defined principles into practice and helps the organization achieve the best results in an integrated manner. The outcome of this unique concentrated effort is a happy customer, a satisfied employee, an assured long term investor and a hopeful community – all sharing a common feeling of pride of association with the organization.
The sector has been developing the many strategies for profit improvement; creating new products & services; marketing & sales strategies and demonstrating strengths in technical expertise. However, it is equally important to have a value creation/ enhancement strategy. We have always believed in focusing on value creation, particularly design and innovation, figuring out which proposed solution needs to be nurtured in an organized manner, and thereby reinforcing the link between the performance of our organization and its valuation in the markets.
While the premium housing segment has built and maintained the momentum for Indian real estate sector in the decade gone by, it is the rise of lower middle class in metros as well as tier I & II cities that would drive its growth in current decade. Those who have spotted the trend will definitely have the first-movers advantage.
Moreover, experience suggests that developers with a strict control on their existing inventory and careful allocation to priority projects have not only managed to tide over the challenging situation of recession but also minimize the impact on their delivery schedules. To achieve the objective of holistic development, I feel it is better to be conservative than throwing caution to the wind. Of course, there is the challenge to take the sector to the next level of evolution and for that we have to focus on striving to push the frontiers and set the benchmark for the industry.
