By: Neeraj Bansal, Director, Risk Consulting, KPMG India
Increased transparency in customer agreements
One of the main features of the real estate ecosystem is transparency. However, on the contrary, the market is considered as an information-inefficient market, where seller tends to provide less information to the buyer. This has adverse impact on the industry and the incentive to produce higher quality product is eventually reduced. Owing to a number of cases in 2011, customers are expected to be more cautious in dealing with the buying and selling of the property. It is expected that the developers will re-look at the existing customer agreements from a buyer’s perspective and offer improved terms and conditions for the new launches.
Increase in number of Green Homes
Sustainability, which was a prominent concept in the commercial segment, is evolving in the residential segment and is expected to gain focus in the near future. In the wake of global warming and increase in natural and manmade disasters, there seems to be a growing awareness among the buyers for Green Homes. Further it is expected that the India may garner about 25-30 percent of the world wide green home market, which is expected to be USD 15 billion by 2012.
The concept has lately witnessed huge traction and the trend is expected to continue in the future, as buyers are becoming aware of the benefits of green building and developers also look forward to invest in the green technology.
Focus on Integrated Townships Projects
The State Government is introducing townships policies and public private partnership to encourage real estate developers to put up large scale integrated townships projects. It is expected that in the near future, with government giving specific focus to the sector a number of integrated townships projects will be introduced[1].
In summary 2012 is expected to be a year where the consumer is expected to gain significantly in terms of improved services, better/ new utilities, higher bargaining power with developers aligning their offerings and services to suit buyer’s preferences to get higher mindshare and larger pie of the market. Big developers in the coming year will be looking forward to strengthen project management capabilities and improving efficiencies with an even higher focus on customer centricity of their organizational systems and processes.
[1] KPMG Analysis
