Does current scenario has good survival rates for Real Estate Sector?
Risk is something that inherently exists in each and every business. By the change in the market dynamics, competition, uncertainties, fluctuating buyer preferences, evolving technology all business plans are more or less wedged. However, Real Estate is a much risky sector as it has huge investment of money and also time in it. Real estate also faces a greater time lag in product initiation and completion than any other industry as well.
Affordable housing, Co-working spaces and organized Warehousing are some of the newer asset classes that are already making a lot of buzz in the market and already witnessed growth. The traditional definition of real estate was all about land, residential and office in India which has been changed drastically by the modern interventions.
The current scenario only addresses the fittest. The real estate industry seems to be at the end of its ‘S’ curve and the developers should accept the need of change to be in this market. The survival rates seen are high for the players with flexibility and acceptance of the need in the market.
This is survival of the fittest era and each developer needs to adapt to survive in the changing environment. This is the right time to make that effort as the real estate business has still not reached that maturity level in India and is also concentrating on redevelopments and restructuring.