NAREDCO Actively Promotes Sustainable And Inclusive Growth In The Real Estate Sector.

G Hari Babu

National President, NAREDCO

How do you view the current state of real estate development in India and the trends shaping the industry?

The current state of real estate development in India is promising. According to a report by Mordor Intelligence, the industry is estimated to be worth $265.2 billion in 2023, with projections to reach $828.75 billion by 2028, growing at a CAGR of 25.6%. Technology has played a pivotal role in digitalising and transforming the industry. Homebuyers now seek modern amenities, connectivity, security, and green spaces. Advancements in technology have made the sector more adaptable to change and customer-centric. Tier 2 and tier 3 cities are witnessing increased demand for office spaces and housing, changing the landscape of real estate. Environment-friendly materials are being used to construct energy-efficient structures, reducing environmental impact. The rise of flexible offices, driven by the hybrid working model, presents new opportunities for the real estate sector.

What are the emerging investment opportunities in the real estate segment?

Emerging investment opportunities in India’s real estate segment include retail, hospitality, and commercial real estate. These sectors are growing significantly to meet the country’s infrastructure needs, offering lucrative prospects for investors. The trends indicate that India’s real estate business is on the path to becoming one of the best in the world.

What are the key challenges faced by the industry? How is NAREDCO addressing these issues?

The real estate industry faces several challenges, including policy issues, regulatory hurdles, and market fluctuations. The National Real Estate Development Council (NAREDCO) plays a vital role in addressing these challenges by providing a platform for the government, industry, and the public to find effective solutions. NAREDCO engages in policy advocacy with various government bodies, represents the industry’s viewpoints, and participates in policy formulation. It promotes growth and development in the real estate sector, raises awareness about industry issues, and acts as a bridge between the industry and the government.

What is the role of NAREDCO in promoting sustainable and inclusive growth in the sector?

NAREDCO actively promotes sustainable and inclusive growth in the real estate sector. It collaborates with organizations like the National Institute of Defence Estate Management (NIDEM) for training and capacity building in sustainable real estate development practices. NAREDCO’s partnership with the National Institute of Real Estate Development (NIRED) offers educational programs to enhance professionals’ skills. It encourages the adoption of cutting-edge technology, supports research and innovation, and works with IT firms to provide access to advanced tools. NAREDCO’s training and skill development initiatives contribute to the wider use of cutting-edge technologies in the construction sector.

How is urbanization and infrastructure development pushing real estate development in India?

India’s rapid urbanisation, driven by a predicted addition of over 400 million people to the population by 2050, is transforming the real estate landscape. The urban population is expected to account for over 60% of the country’s GDP by 2030, emphasising the significance of urban development. Smart cities are rising to meet the demand for better infrastructure and services. Digitalisation is impacting real estate directly, making it more accessible and efficient. Changing preferences for high-end housing, community-based living, and co-working spaces reflect evolving consumer demands. Economic urbanisation, driven by rising incomes, is boosting real estate investment. The focus on sustainability is leading to eco-friendly and energy-efficient construction, reducing environmental impact
and costs.

What is your outlook for the Indian real estate industry? What will be the key factors driving its growth and development?

The outlook for the Indian real estate industry is positive. Key factors driving its growth and development include rapid urbanisation, the rise of smart cities, digitalisation, changing consumer preferences, economic urbanisation, and a focus on sustainability. These factors are expected to contribute to a thriving real estate sector in India in the years to come. The industry is evolving to meet the changing needs and preferences of homebuyers and investors, making it a promising avenue for growth and development.