India, the second most populous country, is home to 130 crore people while its land availability is limited. Hence, ‘Housing for All’ is expected to be a big challenge in the current scenario in the country. This article discusses why it is high time that Indian real estate industry gives adequate attention to research and development (R&D).
The Indian real estate market is largely unregulated and ambiguous. It witnesses high unaccountability among builders in the absence of effective regulation. The recently executed Real Estate Regulatory Authority (RERA) and the upcoming Goods and Services Tax (GST) are expected to ensure greater accountability towards realty consumers and to significantly reduce frauds and delays. However, limited land will always remain a major problem.
In such a scenario, solutions like artificial islands, floating homes, and green homes can answer the upcoming needs of our nation. In order to achieve sustainable real estate development, India needs an industrial policy that pushes companies into serious research and development (R&D) and associate assumption of risk.
R&D has immense scope in real estate. It is an expedient tool which can pave the path towards sustainable corporate growth in all fields related to real estate development. The vision of the R&D department would extend the company’s vision. It will ideally involve complete integration and synchronisation of business modules within the company. It can also create a solid platform for the company, as a whole. R&D maximises the company’s awareness levels to work towards a secure and planned expansion path. The world famous Palm Islands in Dubai are the result of innovative R&D.
As the requirements of every terrain differ, newer means need to be devised to boost real estate activity. India continues to be a favoured real estate destination globally for investors, developers, and non-resident Indians (NRIs), driven largely by investor-friendly government policies and increasing globalisation. The growth of the industry can be attributed mainly to a large population base, rising income levels, and rapid urbanisation. The greater global exposure calls for urgent measures to boost the intensity of R&D in real estate. It would be effective in accelerating the overall economic growth of the country as well.
R&D will not only help in creating newer means of living but will also help in devising newer means of construction. This will help in reducing construction time and accelerating realty traction.
To respond to an increasingly well-informed consumer base, bearing in mind the aspect of globalisation, Indian developers have shifted gears and accepted fresh challenges. In order to meet the growing need of managing multiple projects across cities, the industry is investing in centralised processes to source material and organise manpower. Major players are hiring qualified professionals for project management, architecture, and engineering. With real estate getting more organised with each passing day, boosting R&D is the next logical step. The growing flow of Foreign Direct Investment (FDI) into Indian real estate is also encouraging the same.