Improving The Building Sentiment

What are the current market conditions that you are witnessing in the industry and how have been the company’s performance so far?

The real estate sector has experienced a revolutionary change with the implementation of the newly introduced policies. These policies include Demonetization, Goods and Service Tax (GST) implementation, Real Estate (Regulation & Development) Act (RERA), allowance of 100% Foreign Direct Investments (FDI), Real Estate Investment Trusts in India (REIT) among others. Also, Prime Minister Narendra Modi’s Pradhan Mantri Awas Yojna (PMAY), Housing for All by 2022 along with the Smart Cities mission has stirred the market’s demand and supply within these segments. These policies have helped in streamlining the growth of the real estate sector in terms of transparency, ease of business, entrance of global investments and stability in taxation system.

Tata Realty Infrastructure Limited (TRIL) and Tata Housing Development Company (THDC) have become the most preferred real estate solutions company with the presence across all segments including residential, commercial and retail. TRIL and THDC have already delivered 21million sq. ft. of residential developments, 10million sq. ft. of commercial spaces till date. The company is now working on building the portfolio across each segment and across all key markets of India.

How technology is changing real estate market? How do you see the future of realty sector in India?

Technology has been a catalyst for change across the globe, impacting all industries alike. Jumping on the bandwagon, the real estate industry has been looking to this digital integration for building better product and better customer service. The current generation of customers widely belong to the Gen Y which happen to be the most tech savvy group. Hence, it is important for a real estate developer to connect with its potential consumers through contemporary digital platforms. Real estate has been working with various technologies such as Chatbots, Artificial Intelligence (AI), IoT and Augmented and Virtual Reality (AR & VR) to help deliver a great customer experience. The digital era also witnessed the entrance of GST and RERA on the online platform making the tax filing and the buying and selling procedures simplified.

We firmly believe that in the near future, the real estate transaction shall be digitally driven via AI, cloud computing and blockchain hence bringing in efficiency in operations.

What are the attractive opportunities for real-estate sector in India?

Post the slight sluggish phase due to implementation of various government policies, the real estate industry now is poised for immense growth. Above all, 100% FDI has paved way for the global investors to invest in this robust industry. The speedy development backed by RERA has ensured complete transparency coupled with an overall consolidation of the industry. Having improved the overall sentiment, a renewed vigor has been witnessed in the overall participation of all stakeholders which is only likely to grow. Further, initiatives like PMAY and Housing for All have boosted the buying confidence of the homebuyers creating demand in the sector and an improved standard of living. With the rise in the disposable income of the consumers, and REIT’s entering the real estate markets, there is a wider scope of development in the sector.

The government has been supportive to the real estate sector. What’s your take on that?

Yes, the government of India has been working tirelessly to improve the real estate industry by bringing in transparency, efficiency and by creating demand. Several policies adopted by Central Government have assisted in the delivery of affordable housing. In the recent times, the Pradhan Mantri Awas Yojana (PMAY) introduced by Prime Minister Narendra Modi in 2015 under the Housing For All by 2022 mission has proved to be the guiding force in providing affordable houses to urban poor population in India.

Additionally, over the course of the past year, various home loan subsidies have provided the residential real estate market a further boost in the sales of homes. The implementation of the Real Estate (Regulation & Development) Act, 2016, Demonetization and the Goods & Services Tax have all contributed to the improved transparency within the sector, offering more trust to homebuyers across India. We are also seeing significant interest from NRIs after the government announced its decision to allow 100% Foreign Direct Investment (FDI) under automatic route.