– Somendra Sarwal –
The day is not far when Indian cities shall compete among themselves to have a greater share of productive population and wealth.As India becomes morediverse largely due to change in macro policy stance with the likes of GST, Smart Cities, IFC etc. and socio-economic and demographic shifts; new institutional-grade real estate locations will emerge.While the existing cities will develop fast,there will be emergence of new cities being built.These cities shall not only race to dominate serviceand manufacturing hubs, but create wealth tobecome prime investment destinations.
What we may witness is a complete transformation of build environment in India. With shifting balance of power towards Asian countries, strengthening GDP, enhanced investments and savings, falling interest rates, specialised manufacturing and service exports, improved physical and virtual connectivity and largest population to serve; Indian real estate will witness a paradigm shift from selling ‘themed residences and offices’ to‘specialised cities and city centres.’A successful citywill attract more people,thus resulting in rising cost of prime urban real estate (per square feet). Affordability will fall, leading to greater urban density,smaller apartments in mega cities and migration of population to new specialised cities.
Recent studies peg that India needs to support the annual average housing completions between 2012–2025 of 1.1 crs units as against 93 lakhs in China and 14.8 lakhs in USA. This can only be supported by improved urban Infrastructure and connectivity coupled with innovation in financing, design, build and buyingreal estatetechnology. Hence, we shall not only see change in how physical real estate is being conceived and build but also see peripheral services like virtual sales, compliance, consumerism, micro market intelligence platforms, new structures of financing including REITs/ INVITs, ETFs, CREFs, municipal and social bonds being developed, delivered and connected. Digitisation, artificial intelligence, big data, new construction methods, augmented reality will all become a new reality.
As a nation,we shall witness broader range of opportunities, risks and value drivers, leading a new augmented reality of Real Estate.
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About the Author
Somendra Sarwal
Author & Entrepreneur
About the AuthorAn investment banking professional with a cumulative experience of over 14 years in Structured Finance, Corporate & Investment Banking, Private Equity & Debt Syndication, Para Legal & Fiduciary Business etc. Has 360 degree exposure of the entire Investment eco-system. While working closely with an extensive and exclusive franchise of Large & Mid-Size Real Estate and Non-Real Estate Business Houses, Tax and Legal Advisors, Banks/NBFCs, Family offices and UHNIs, his experience enables him to structure and execute potential transactions from commercial, credit and fiduciary point of view.
Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of INVC NEWS.
