In India, real estate construction projects face frequent delays in completion due to the absence of standardization and workflow automation on the part of the developers.
Moving from an industrial past to a digital future is a challenge every sector is facing. Although the real estate sector is no exception, it is uncomfortably slow to adapt to the changing expectations.
The real estate sector in India received a renewed impetus, courtesy structured reforms ushered by the implementation of RERA and the government’s focus on affordable housing.
Urban India today houses 460 million people, making up 33.6% of the country’s population. By 2030, this percentage is expected to increase up to 40% or approximately 600 million urban dwellers.
Real Estate in India: A Present-Day Scenario
Real estate sector in India will contribute to 13 percent of the country’s GDP by 2025 and is expected to reach USD 1 trillion by 2030. For an industry with an enormous contribution, it has its fair share of challenges in India.
In India, large residential projects are delayed far too often due to several reasons including tedious approval process, flawed budgeting, inaccurate cost management, poor cashflow planning, inefficient resource management, and labour issues.
FDI (Foreign Direct Investment) for the real estate sector opened up in 2005. Back then the real estate sector and especially smaller players were reeling under the pressure of unsold inventory, delays in projects, and negative cash flows, foreign investors too were shying away due to the uncertainty in profits and the mandatory tenure of locking for investments.
In the past few years, real estate as an asset class is transforming quickly. Major real estate players are building and investing in the sector on an epic scale. Moreover, the landscape is becoming more sophisticated and widespread, with a varied range of risks, returns and innovations being the new drivers of value.
In India, the real estate industry is facing an increasing need for a workflow framework, especially after the challenges posed by demonetization, GST implementation, RERA, and the new ICBC guidelines.