Rakesh Reddy, Director, Aparna Constructions & Estates Pvt. Ltd.

Rakesh Reddy helps in establishing, promoting and maintaining the ‘Aparna’ brand. He is involved in developing strategies and executing tactics for the projects across Telangana & Andhra. He is also responsible for leveraging technology helping bring efficiencies in management. He closely works with the managing director and looking for verticals the company can expand into. Apart from being associated with Aparna Constructions, he is also invested in start-ups in the education and IT space. Before Aparna Constructions, he was responsible for spearheading Astoria’s penetration into the global Marine Oil & Gas industries. Under his leadership he grew Astoria from a start-up into a 30-man operation, along the way, raising USD 5 million in funding and offices in Singapore, Hyderabad and Dubai. He has a strong marketing acumen which is demonstrated by education and experience. He has completed his Masters in Science from Nanyang Technology University, Singapore. He is a recipient of Ministry of Transportation ‘The Minister’s Innovation Award’ 2010 and was nominated for Microsoft’s Innovation Award in 2008. Apart from work he actively mentors and advises start-ups. He loves to travel and explore new places.

Real estate demand in India was improving in the first quarter of 2020 until the onset of the COVID-19 pandemic. Due to the subsequent lockdown, home buyers deferred their decisions until there was more clarity regarding the market outlook. As India continues to manage the pandemic, the market is expected to regain its previous momentum. Although there was a temporary slowdown in sales, it is unlikely to affect the increasing real estate price trajectory in India.

Homebuyers in India will largely favour risk-free property investments for the foreseeable future. There will be high demand for reputed developers with minimal execution risk. Prices will continue to increase as home buyers will carefully consider the quality of the developer, project, neighbourhood, environment, and amenities.

Let’s take a look at the top trends that are driving the home buying pattern in India Real Estate.

  1. Confidence in Real Estate: Indians view real estate as a safe and secure investment. The emergence of an economic crisis only reinforces this sentiment. Owning property elicits a high sense of security when the economy is facing uncertainty. Homebuyers will favour risk-free property investments during this time. There will be high demand for reputed developers with minimal execution risk.
  2. Potential for Price Appreciation: Many cities in India, such as Hyderabad, have the potential for real estate price appreciation because they offer affordability and value without compromising on amenities. The availability of affordable housing is critical to the real estate sector’s reinvigoration. Affordable housing projects can incentivise potential buyers and widen the market opportunity. Homebuyers may not want to commit a large amount of money amid uncertainty, but still want to make a secure long-term investment.
  3. NRI Investment: India has always been a popular real estate destination with NRIs, primarily due to its developed commercial infrastructure in major cities. The decreasing value of the Rupee against the Dollar is benefitting NRI investors significantly as investors get more square feet of space for the same amount in the foreign currency. This is an opportune time for NRIs to buy property in India. Furthermore, India has been comparably resistant to global recessions. During the last global recession, India was one of the few countries to have not been adversely affected. NRIs are aware of this fact and prefer investing their foreign currency savings in the growing real estate market.
  4. Regulatory Reforms: The key drivers of growth in India’s residential real estate market are regulatory reforms including RERA and GST. The Reserve Bank of India’s recent decision to link loan rates with the repo rate will have a significant impact on the real estate sector in the coming years. This move lowers EMIs on home loans, making them cheaper, as well as reduces the debt repayment burden on builders. It presents a great opportunity for the sector as the ease of financing should translate into increased sales, new project launches and a rejuvenated economy.
  5. Economic Relief Measures: The economic relief measures announced by the Government are extremely positive for home buyers and the real estate sector at large. The near-term effects of the lockdown will be offset by these relief measures which look to ease the pressure of loan repayment. It will help ease the anxiety of home buyers and ensure the completion of projects. This will keep prices on their upward trajectory.
  6. Modern Amenities & Smart Technology: Many projects are now offering amenities that are designed to provide an enhanced lifestyle for residents. Reputed developers make sure to invest in modern luxury facilities including clubhouses, fitness centres, swimming pools, spas, playgrounds and sports facilities. They are even integrating smart automation systems for added convenience and comfort. Applications include security systems with smart sensors and smart access systems. Smart transport systems are also utilised to detect free parking spaces as well as to detect children playing and alert oncoming vehicles.
  7. Vertical Communities: Vertical communities are an emerging approach to infrastructure development across India. The urban migration, the increasing scarcity of land in urban centres and the rise in real estate prices is causing vertical high-rise communities to become the norm. As more companies set up their offices in India, this creates an enormous job market and an equally enormous requirement for residential areas. With the need to meet growing demand, vertical communities provide a practical way of decongesting urban sprawl.
  8. Green Construction: As home buyers in India shift their focus towards environmental responsibility, the availability of green amenities is on the rise including solar panels, rainwater harvesting, waste management and high-efficiency lighting. Green buildings have created new benchmarks for the real estate sector and have proved that luxury and sustainability can go hand in hand. The implementation of green buildings can help address concerns including water efficiency, energy efficiency, and reduction in fossil fuel use, handling of consumer waste and conserving natural resources.
  9. Affordable Housing: Developers are becoming increasingly inclined towards building affordable housing projects, especially with the Government’s support. Attracted by growing job opportunities in major cities, consumer demand for affordable housing has increased exponentially. Affordable housing projects were also given a major impetus in the Union Budget 2017 by being granted infrastructure status. Since the affordable housing sector is the most incentivised segment for both developers and consumers, many reputed developers in India are now launching projects in the affordable segment.
  10. Integrated Townships: Integrated townships are the future of India’s urban planning initiatives. Townships provide an integrated solution to several urbanization challenges. They offer residents the option of living in a highly organised real estate development which provides a holistic mix of housing with modern amenities, green open spaces and connectivity to commercial centres that can exist regardless of how rampant urbanisation impacts the rest of the city. Because of all the benefits townships offer in terms of providing a serene haven from the bustling city, the integrated township model is a fast-growing segment.

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