Real Estate Developers Change Operational Strategies in India

The Indian real estate sector has undergone several key reforms in recent years, aimed at increasing transparency, protecting the rights of buyers, and promoting investments in the sector. Some of the major reforms include:

• The Real Estate (Regulation and Development) Act (RERA) of 2016: This act established a regulatory authority to oversee the real estate sector and protect the rights of buyers. It also mandated the registration of all real estate projects with the authority, and made it mandatory for developers to disclose details such as the carpet area, super built-up area, and the cost of the project.
• The Goods and Services Tax (GST) of 2017: This replaced a number of indirect taxes and streamlined the tax system for the real estate sector. It also reduced the overall tax burden on home buyers.
• The Insolvency and Bankruptcy Code of 2016: This act established a framework for resolving insolvency and bankruptcy cases in a timely manner, and also provided a mechanism for the resolution of disputes between developers and buyers.
• The Pradhan Mantri Awas Yojana (PMAY) of 2015: Towards the goal of affordable housing for everyone, the Pradhan Mantri Awas Yojana (PMAY) of 2015 is being implemented. It provides credit-linked subsidies and interest subsidies to eligible home buyers.
• The Foreign Direct Investment (FDI) policy: The government of India has relaxed the FDI norms for the real estate sector in recent years, allowing foreign investors to invest in real estate projects through the automatic route.

These reforms have brought in transparency, accountability and ease of doing business in the Indian real estate sector and have also led to an increase in investment in the sector.

Due to these reforms, the Indian real estate market has undergone significant changes, with real estate developer shifting their operational models to adapt to the changing needs of customers and market conditions.

• The shift towards more affordable housing has been a major change. With the government's push for affordable housing and rising demand for such properties, developers have started to focus more on this segment. They are now offering smaller, more affordable units, and using innovative construction techniques and materials to keep costs down.
• Technology is another change in the real estate industry. Real estate developers in India are now using virtual and augmented reality to showcase their projects to potential buyers, as well as using data analytics to better understand customer preferences and market trends. This has helped to improve the overall customer experience and make it easier for buyers to find the right property.
• Green building practices and sustainability are also becoming more important for developers. This includes using sustainable materials, energy-efficient systems, and designing buildings that are more resilient to natural disasters. Not only does this reduce the development's environmental impact, but it also attracts eco-conscious buyers.
• Finally, developers are also starting to adopt more flexible payment plans and financing options to make it easier for buyers to purchase properties. This includes offering installment plans, as well as working with banks and financial institutions to provide financing options.

Overall, these changes in the operational models of real estate developers in India are helping to make the industry more responsive to customer needs and market conditions, and are helping to drive growth and innovation in the sector.