This year has been marked with a different vigor and enthusiasm. Driven by the shift in consumer psyche, companies across segments have witnessed a significant surge in consumer demand and sales.
The home building and renovation industry has recorded an increase in demand/sales, according to the insights from IBO, one of India’s largest omni-channel brand for home building and renovation. IBO has also stated that while the overall industry is poised for a strong growth trajectory, much of the optimism is also driven by consumer’s opting for omni channel solutions/services.
The Indian real estate sector has been drawing large-cap investments. Currently pegged at US$ 50 billion, the segment is expected to invest additional US$ 22 billion by 2030. In fact, the residential segment is set to grow at a CAGR of 5% between 2022 and 2027. In fact, interestingly, over the last 4 years, there is a shift in consumer preference from residential flats to plotted properties within gated societies. This in turn is driving the demand for home building solutions. Additionally, the building material industry is also expected to double US$ 40 billion to US$ 80 billion over the next five to seven years, recording a 15% growth.
Sharing his views about the ecosystem, Mr. Venkateshwar Kumar, CEO – Retail, IBO, said, “The path to economic revival for the real estate and home building segment has been strong post the pandemic. On one hand there is an increase in new home buyers, both apartments/villas and plotted properties. On the other hand, after two years of being restricted at home during festivals, home owners have also pursued renovation aggressively. We have witnessed a healthy footfalls and demand in our stores during the festive season. An extremely positive shift is that fact that more consumers are now opting for organized omni-channel players. We are optimistic that over the next five years, the home building and renovation market in India will grow by 10-15%.”
IBO also highlighted that not only have customers shifted to organized players, but the professional community (plumbers, carpenters, electricians etc.) have also started purchasing from retail players in the segment, as they are able to buy a diverse range of products at extremely affordable price points. “Professionals migrating to organized channels is a progressive movement in the industry. At IBO, this community is an integral part of our TG. We have designed our store layout specifically keeping in mind the behavior and requirement of artisans. At the same time we carry the selection and price points which are relevant to the professionals to create greater value for them. With more of electricians, plumbers, carpenters moving to organized sources, the industry is pegged for a larger growth share and price transparency will become the norm and not the exception”, added Mr. Mayank Shivam, CEO – Digital, IBO. South India’s largest seller of home building, renovation and improvement products IBO offers over 8,000 products across 175 brands at their stores in Bangalore (38,000 sq. ft) and Chennai (20,000 sq. ft).
