India’s real estate market is on the cusp of a massive reboot. The sector which had been on the throes of consolidation for the past few years is witnessing another shake-up, fuelled by a digital upheaval, where renowned, trustworthy developers are ruling the roost in the ongoing crisis.
Homebuyers looking to buy homes online are now gunning for registered, cash-rich developers with a solid track record. Since the entire process of home buying has been given a new dress-up named digital, homebuyers are excited to experience this new-fangled style of homebuying, albeit after verifying thoroughly the real estate developer’s credentials.
Unscrupulous games over for small scale real estate developers
This change in consciousness among homebuyers is a signal to the entire real estate community that homebuyers had enough of their misguiding’s and that irresponsible ways of working won’t be tolerated anymore.
For decades, real estate developers have only followed their own ideologies and planned their business roadmap for personal gains. They played spoilsport with hard-earned deposits of millions of homebuyers and indulged in money laundering with aplomb. The demands and needs of homebuyers mattered less for real estate developers as they turned a deaf ear to quality of construction, project deadlines and other miscellaneous promises.
The shady tactics went on merrily and in turn, threw water on the aspirations of homebuyers looking to get the keys to their dream homes within the estimated deadline. Though RERA and demonetization shunted the game of most real estate developers, homebuyers, wary of the murky past of the realty sector, want to settle with big brands, where trust, quality, and accountability is maintained throughout.
Merger, Consolidation to strengthen bigger players
Reeling under the weight of RERA, demonetization& insolvency & bankruptcy code, small and medium realty players were looking to revive their fate in 2020. But the brunt of the pandemic broke their backs, leaving them with no other option but to surrender their fate into the hands of the bigger players.
Cash-starved real estate developers are handing over their stuck projects to financially sound realty players. Other stressed developers are forming joint ventures, monetizing their land assets and extending development contracts in prime cities.
This consolidation spree has put bigger realty players in the driver’s seat and helped them capture a larger part of the market share within a very short period of time. This exercise would accelerate in the coming months as better-capitalized developers will emerge stronger and wipe out the smaller fishes from the competition.
Homebuyer sentiments to favour reliable developers
Realty players with strong balance sheets and strong brands will be ultimate winners in the years to come. Backed by strong business fundamentals, exhaustive knowledge of market movements, and technical expertise to manage the real estate ecosystem, these real estate developers will launch projects faster and execute them at speed to win the sentiments of homebuyers and at the same time make their brand portfolio stronger.
The fact that these large developers have strengthened their online presence in a shorter period of time by employing the who’s who of technologies have actually turned the tide in their favour. Homebuyers looking to buy homes in the affordable and mid-segment categories are making a beeline to online realty portals having big names and are booking homes with elan.
All said, the future of trustworthy real estate developers is bright and rightfully so. Riding on huge market shares and top brand values, these players will plough ahead with their plans of building a new and resilient India and help the real estate sector get back on its feet in a stronger fashion.
Also read: Affordable Housing and Digital Home Sales – the prescription for the realty sector’s revival
