Developers are now industrialists
Rohan Agarwal, Managing Director, Geopreneur Group speaks about his views on the realty sector and future prospects..
The current scenario of real estate
We as an industry are still unorganized and need to work to gain trust and faith of people. Being a young entrepreneur, I view things differently than how business was conducted earlier. I feel developers today are more like industrialists who are manufacturing product for a customer and therefore the product has to be designed as per market demand. The developer can no longer construct a project, keep the vacant inventories and expect buyer to invest in what he offers. It is a customer centric market with much aware buyers. Market acceptability is an important factor when it comes to real estate.
Three years ago, the real estate market was in a downslide, but the buyer sentiments are improving. Affordable housing is the recent trend and accordingly, developers are reducing the ticket size of their projects to appeal to the buyers. The project design and pricing also depends on the location of the project and the market profile. A project in Worli, Mumbai would be a luxury residential project with higher price tag compared to a project in Borivali or Mulund which would be of an affordable price range. The vacant inventories are the result of product not matching the customer profile or demand.
The recently introduced RERA Bill will surely bring in necessary changes in this industry. The earlier laws that came into force were ineffective at ground level. I am sure the shortcomings will be addressed to make it more comprehensive and efficient.For example, the government officials should be made accountable when it comes to approval.The Bill as a whole will make the sector more organized and professional. There would be genuine buyers and players in the market who will emphasize more on discipline and transparency.
The buyer’s trend in the recent times
For the buyers today, the quality matters more than the size and space of the apartment. People are more interested in amenities provided. Real estate industry moves as per the consumers’ trends and wishes. Buyers have become more brand conscious than before. They are very much aware and educated about the developers’ status and take decisions consciously. People are more tech-savvy and they get information at the earliest.