Insights

Demand for data was humongous before COVID-19. Post COVID-19 words are not enough to describe the situation. A recent report by telecom gear maker Ericsson tells us that Indians were averaging 12 GB of data per month per user. This is the highest globally, and it would be 25 GB per month/per user by 2025. This amounts to 21 exabytes of data per month. We will analyze the reasons for demand later on. The question is, where will this data be kept as Data localization as a policy will be a norm everywhere in the world. Data Localisation is the concept of maintaining data created in a particular nation within that country's border. The answer is, of course, the 'Data Centres.' Do we have enough data centers in the country today to withstand the sort of demand that is there domestically? Then there is a small matter of Global hyper-scalers eyeing India as a preferred destination for their data center needs. Hyperscalers are enormous companies such as Google, Amazon, Microsoft, Facebook, etc.

The Real Estate Industry especially, which was struggling due to liquidity crisis, low demand, and regulatory framework, suffered substantially in 2020. Will the momentum carry on in 2021? We can make calculated assumptions. One factor that brings back confidence is the discovery of the VACCINE to fight COVID-19 VIRUS. 

Real Estate Consultant is the conduit between the customer and the developer. The customer is dependent on his or her consultant to suggest the right property that they would be cherished for years. With a plethora of property options available nowadays, it is but natural for customers to get confused. This is where the consultant, comes in, analyses the various options, and suggests the ones, which a customer can choose from. Consultancy is a service and customers will always appreciate excellent service. The demographics of the customer have changed over the past decade. Customers are now, younger, in the age group of 27 to 32 years, having more purchasing power and technologically more savvy, as compared to 45+ a decade earlier. With double income families, especially in Metros, in vogue, purchasing a property, nowadays, is now a husband-wife joint decision, in the sense that the incomes would be clubbed to avail of loans and other associated benefits.

Why have the developers of one region not explored development in the other domains, even if they discerned opportunity?  Developers have, in accordance with their arena of operations, been classified as National Developers and Regional Developers. I would further say there are Industrialist developers such as TATA, Godrej, Mahindra who have a presence in more than one industry segment – one of them being Real Estate; hence they fall in the category of National Developers.

A systematic flow is required for the smooth operation of the business. We have to outline the business plan based on business requirements. This is the formal projection of the value the venture is expected to generate and will justify the investments that need to be made. Each pillar has its own critical success factors, which can be combined in a variety of ways. In addition, the project manager bases his or her actions on the vulnerabilities and strengths of the developer. Project Management requires careful evaluation of a project and to create a plan according to the requirements. However, as much as managers may differ from each other, their mission is one and the same: ensure the economic balance of the real estate business.

The land is a limited resource – grab it before it diminishes. True that the length and breadth of land on earth are measurable and will not change. Little did we realize that there is a possibility to go vertical where the sky is the limit.

The real estate sector primarily constituted by housing, office, retail, and hospitality is one of the largest contributors to India’s growth story for the last couple of decades. The sector is envisaged to accrescent to USD one trillion by 2030 from USD one twenty billion in 2017 and would contribute thirteen percent to India’s Gross Domestic Product (GDP) by 2025. The sector’s criticality to the direction of India’s economic growth trajectory is further augmented by the fact that it’s the primary source of livelihood for more than fifty-two million people – A number prospected to rise to sixty-seven million by 2022. Furthermore, eighty percent of the people employed in real estate includes a minimally skilled workforce; a major factor in a country grappling with issues of skill development for its large-sized working population.

Indian Real estate sector is one of the hottest in the globe. A lot of critical international investors look at India as a potential to grow even further. A report from Indian Real Estate Industry dated August 2020 states the sector to be valued at 9.3 billion USD in 2040 from 1.72 billion USD in 2019. These are some serious numbers. Hence, it is not surprising that many FDI will come into the real estate market in the coming years.