Published date | 25 December, 2019

Real Estate to witness major changes in 2020

Five Prominent Transitions that are underway 1. Technology and efficiency will be in the driver’s seat 2. The next decade will witness a market size expansion of over 50% 3. Investors will contemplate development as prime assets become scarce: 4. Urbanization in emerging economies will necessitate unprecedented construction activity. 5. Being in sync with governments will ensure lower risks on investments

Tanuj Shori, the Co-Founder and CEO at Square Yards, has clearly outlined several major changes that will influence the real estate sector in the New Year. Real estate will always be a preferred and indispensable investment option with innumerable people seeking quality housing globally for themselves and their families. Yet, there will be several changes coming to the sector in 2020. Efficiency and technology will be a major disruptor; the real estate sector will witness the full impact of technology, making some forms absolutely redundant and there will be leaner, more efficient distribution and maintenance of real estate. Efficiency and sustainability ratings for projects will be necessary for increasing the saleability quotient and proptech players will be indispensable for customers and developers alike. 

Between the year 2010 and the present day, quantity of real estate has doubled worldwide and growing urban migration, stronger economic factors and higher per capita income will make sure that market size grows by 50% over the next decade. Investors will foray into development of their own prime properties to keep portfolios chugging along. New money from emerging economies will be invested in growing markets or retirement villages and agro-based housing schemes in the future. Construction activity will increase hugely due to higher urbanization in emerging markets. Real estate developers and investors will look to stay in sync with Governments or collaborate with the authorities for urban housing and infrastructure projects. 

Tanuj Shori feels that efficiency and scale will be key buzzwords for realty players and investors in the future. They will look to have leaner and more efficient operational mechanisms and cost-cutting measures. Automation based on technology will steadily become more important. The industry will have better planning and legal regulations along with better symmetry of information. Realty players need better insights into local development practices and markets while there will be more consolidation via JVs, acquisitions and mergers. There will be a bigger battle for acquiring the right talent with realty market expansion. Local knowledge will be occupying pole position; skilled manpower will be required with local data and necessary skills. Multi-localism will be a key parameter, i.e. local housing, communities, products, industries, cultures and even customs. This is becoming a major trend globally and will impact real estate as well.

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Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.