Historically Indian real estate as an industry was disorganized till the 1980s. With the advent of Asian Games in 1982, real estate in India was seen as an industry having the potential to deliver. Since then the real estate website in India has not looked back. The initial concentration was on the residential sector; Indian real estate got a boost with the advent of IT industry in the 1990s. There was a sudden requirement of IT Parks and specialized accommodation, cities like Bangalore, Noida, Gurgaon and Mumbai witnessed extensive development of office space and IT parks. This was followed by the tier 2 cities like Hyderabad, Pune, Chennai, Jaipur and Ahmedabad in 2000s.
The concept of retail spaces or outlets and malls also got a boost when DLF undertook large scale development in Gurgaon in the late 1990s. The model was then replicated in other cities as well. These developments ushered in the latest technologies in this sector from across the world and the actual potential of Indian real estate sector came to the fore.
The construction of IT parks and malls etc. not only led to job creation in the IT and retail domains but within the real estate sector as well. This led to migration and exodus of population from smaller towns to the larger business centric cities; this suddenly resulted in the shortfall of Residential property in India with high demand and almost nil supply. The real estate sector realized the opportunity and concentrated its efforts towards the residential sector; Tier 1 and 2 cities in India saw large scale construction of residential apartments; as there was a paucity of land packets within the city boundaries, there was a two dimensional expansion; the cites started to expand on ground as well as vertically.
Then came the ecommerce revolution and the medical tourism around 2009. This brought in the demand for office space, warehousing and specialized accommodation for hospitals and medical care. As the demand for medical tourism increased the hospitality industry got a push and requirement for all kinds of hotels went up. All these developments kept the real estate sector in India on its toes, with no time for introspection and planning.
Somewhere down the line real estate industry in its exuberance and fast tracked development lost the basic tenet of planning, market surveys, demand v/s supply models, which led to rampant, ill planned construction; driven more by availability of resources rather than by demand. The real estate developers started riding on huge egos; a feeling set in that the demand is infinitely large and therefore the end user will have nowhere to go but queue up at their doorstep; therefore, the sector could get away with anything. As they say ‘time does catch up’ and that is what happened, over a period the supply was higher than the demand and the end user got alienated with the head strong attitude of the developers. The real estate sector went into a slow-down phase since 2013, three years down the line things are still not looking up. The real estate trends in India has learnt its lesson the hard way and we hope it makes amends in the right direction.