The Indian real estate sector has undergone significant growth, projected to become a $5.8 trillion industry by 2047, as per the collaborative report titled “India Real Estate: Vision 2047” by Naredco and Knight Frank.
This surge in growth emphasizes the sector’s crucial role in national economic development, with a focus on residential real estate.
Despite this progress, challenges persist, particularly in providing affordable housing for all income groups.
Addressing these challenges requires strategic attention to infrastructure development, integrating sustainability into construction and design, and leveraging technology as a transformative force.
Role of technology in affordable housing boom
Affordable housing has become a focal point in the Indian real estate sector. Developers are recognizing the transformative role that technology can play in ensuring the timely completion of projects and the development of cost-effective homes.
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Incorporating international methods like dry-wall techniques, slip-form construction, pre-fabricated construction, and Mivan shuttering signals a positive shift towards more efficient and affordable construction practices.
Overcoming cost barriers
While technology offers significant advantages, smaller real estate developers may struggle with the associated costs. To make technology more accessible, regulatory changes, including the rationalization of customs duty, excise duty, tax reliefs, and VAT, are essential. Such changes can substantially reduce the overall cost of affordable housing projects, benefitting those in the low-income bracket.
Encouraging adoption of technology
The slow adoption of technology by some real estate developers highlights the need for concerted efforts to educate and encourage them. Many smaller developers, led by promoters unfamiliar with the benefits of technology, continue to rely on conventional practices. A collective push is needed to encourage the industry to embrace new technologies, ultimately saving both time and construction costs.
How government initiatives can make affordable housing more attractive
Government initiatives are pivotal in promoting affordable housing. Introducing a home loan interest rate subvention scheme and providing concessions on construction materials like cement and steel for affordable housing projects are steps in the right direction.
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Additionally, redefining affordable housing to include incentives for units under Rs 35 lakh, coupled with measures such as GST reductions, income tax exemptions, and lower interest rates, can make affordable housing more accessible and appealing.
To conclude
The amalgamation of technology and affordable housing holds immense promise for revolutionizing India’s real estate landscape. As the industry adapts to innovative construction techniques and embraces technology, there is a bright future ahead marked by increased affordability, sustainability, and inclusivity in housing. Through strategic government initiatives and a collective industry effort, India has the potential to lead a housing revolution that helps people from all income levels, ensuring a strong real estate sector for the future.
