Property in India Faces Challenges Arising From Rapid Progress

Rapid economic progress has had a significant impact on property in India over the past twenty-five years. In the past all countries that have liberalized their market, allowed FDI inflows, and started trading intensely with the outside world have experienced a rapid rise in the standard of living of it’s citizens. A rising standard of living has led to the creation of new real estate that is more expensive than was real estate in these countries at any other time in the past. Real estate in India is no exception, properties in India that could be bought for 1 lakh rupees thirty years ago, will not be sold for less than 2 crore’s today.

During all this rapid progress that has led to a higher standard of living for millions in India, the side effect of rapid economic growth is being overlooked and is being brushed under the rug. Future challenges that India faces are as follow.

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Urban Migration Leading to Chaos

Nearly five hundred million or 50 crore Indians it is estimated will live in urban centers in India within 8 years and nearly 6 crore will live in urban slums by this time unless action is taken to provide slum dwellers with suitable urban housing.

The number of Indians expected to live in urban slums may even be greater than the 6 crore mentioned if the government does not begin to tackle this problem sooner rather than later. Slum dwellers must own their own property in India and become a part of the formal economy.

Poverty

Nearly one third of the worlds poor, or 40 crore people, live in India. The number of poor in India may actually have risen in several Indian states over the past few years. Additionally, many of those who have escaped poverty over the past few decades are in danger of once again falling into poverty. Owning realestate in India is only a distant dream for many of the poorest of the country.

Widening Inequality

Despite the large number of Audi and BMW cars on Indian roads, there is a wide financial gulf separating India’s rich from the poorest in the country. The Per Capita GDP in India is a little more than $1,400 and is among the lowest in the world. The difference in the per capita income also varies widely between different states; it is $294 in Bihar and $436 in Uttar Pradesh, far below the national average. The wide gulf between per capital incomes in different regions leads one to infer that the poor of region may be regarded to be rich in another region and these same rich individuals of one region may be able to buy property in India at a poorer region.

Rural Backwardness

While many Indian cities have glass towers and glitzy shopping malls, rural regions of the country are still decades behind the lifestyle enjoyed by the urban elite. One third of rural Indians don’t have access to an all weather road and three hundred million do not have any electricity. The ports, airports, and railway’s are considered to be highly inadequate to fully serve the countries needs. Infrastructure across many parts of India is reminiscent of the British era and much of the real estate in India suffers from a lack of a proper support from civic services. 

Why women’s participation is increasing in Indian real estate market?

Real estate has traditionally been a male-dominated industry. Participation of women in Indian real estate market is not given due importance, but with time their participation has increased. From handling real estate businesses to paying an equal role in searching for the right property, women’s role has gradually increased in the industry. If we believe experts, this is going to benefit the entire industry in many ways.

There has always been a debate over the role of women in real estate in India. But the researches have shown that the companies with a higher percentage of women in top positions perform better on different performance metrics. Be it handling a team or creating the best property sites, they can now do everything.

Increasing women’s participation in the real estate industry

Over the years, realestate in India has grown considerably. Be it increased international penetration, improved services by builders or more organized transactions, everything has made the sector more organized and reliable. In this scenario, roping in women power gives business owners a chance to utilize their talent base to take their company forward. Companies involved women in top positions to expand their business with new resources and untapped talent.

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Involvement of women in decision making

Women never got the respect and importance in property buying decisions due to their impatient nature. But in recent years the change has been noticed. Now when most of the women are working professionals having good knowledge of real estate industries, they can help their partners buy the right property. They have knowledge of top real estate websites in India and explore them to collect property insights for an informative decision making.

There is no doubt in the fact that women are good at multitasking as they perfectly balance work and family. This becomes a critical aspect of their involvement in real estate market. Moreover, easy access to the top property websites in India helps them get the necessary synergies to take right home buying or property investment decision.

   

Indian real estate sector has been improving gradually and increased involvement of women is a clear signal of it.

Property in India To Benefit From Trust Between Buyers and Sellers

It looks as thought property in India is changing for the better day by day as steps are taken to reduce greatly the trust deficit between buyers and builders. Recent activity has led builders who had shoddy reputations to be publically shamed while honest builders who had delivered quality projects on time have remained largely untouched and even stand to benefit by the scandalous which have been broadcast

The long arm of the law is coming out strongly against builders who have delivered delayed and shoddy houses, and while this is good news for consumers it is also good news for reliable builders who will become more likely to attract buyers in the long term.  Concerning the relationship between builders and buyers, it is likely to strengthen in the future as buyers become aware that only the most reliable builders shall be able to deliver homes in accordance with new rules and norms that have been created by the government. Residential property in India will likely experience a renaissance as buyers who had thus far been reluctant to invest in property due to a deficit of trust between them and builders shall seriously consider investing in a new house. Two examples of legal actions undertaken by the government are below

Non-Handover Of Flat

Many builders in India are renowned across the world and have little to fear from any government action as such builders diligently follow all norms stated by the government.  However builders in India who are less well reputed have in the past caused havoc for homebuyers who had nowhere to seek redressal. Therefore in the interest of consumers, a recent ruling by the consumer dispute redressal forum against a builder in Mumbai charged the builder with non-compliance for an order passed 9 years ago, the builder has been sentenced to a two-year jail term. The reason for the sentencing was that the builder had failed to give possession of the flat for two years despite being paid the sum in its entirety by a buyer. The builder had failed to give procession for years after being asked by the forum to do so and hence was eventually ordered to serve a prison sentence.  

Adherence to FSI Norms

Builders in India at Mumbai have at times been known to exceed FSI norms, which is a serious offence. When one such builder in Mumbai had undertaken the completion of a redevelopment project yet was unable to complete the project on time, he threatened residents of the redevelopment project with cancellation of the money paid to them needed to live in alternative accommodation while their old building was being redeveloped. The builder was also caught forcing residents to take ownership of units in the redevelopment project in spite of not having occupancy certificates. A case was filed against the builder and it is under hearing by concerned authorities.

Conclusion

The recently emergent pro consumer stance of the government with regards to properties in India, will lead to a positive sentiment among consumers in the future.