We often measure a country's growth through how taller its buildings get, how quickly new technology has been adapted and how fast foreign brands penetrate our desi market. But, the real parameters we often forget which actually reflects the growth of a country is when its smaller towns, villages, and second and third-tier cities see a spurt in the construction of real estate.

Through its 75 years of independence, India has positioned itself as one of the fastest growing economies in the world and one of the largest drivers of that has been the real estate market of the country.

With the ever-increasing demand for housing, the Central and State governments are taking multiple steps to address the changing conditions of the sector. New urban centers have been developed across major cities like Bengaluru, Chennai, Hyderabad, Kolkata, MMR, NCR, and Pune due to the rapid growth of the IT-ITeS sector.

As per a report, in India, the real estate sector is the second-highest employment generator, after the agriculture sector.

The report further states that the real estate sector in India by 2025, will contribute 13% to country's GDP.

This sharp rise in contribution is likely due to the emergence of nuclear families, rapid urbanisation and rising household income which will drive growth in the residential, commercial, and retail segment of the Real Estate Market in the country.

As per ICRA estimates, Indian companies are expected to raise Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, which is an increase from the 29 billion dollars raised to date.

In this 75 years of independence, the Real Estate sector has seen winds of change and several ups and downs. In this article, let us take a look at the milestones that have shaped the Real Estate Industry to what it is today.

The Advent and Adoption of Technology

In the past, home buyers were dependent on brokers and newspaper adverts to find their dream home. But, the pandemic more so than ever has acted as a catalyst for the digitalization of the real estate sector by instilling a sense of urgency in the industry to more broadly use technology.

Developers are increasingly embracing next-generation tools such as mobile applications and online purchase platforms that serve as a one-stop solution for getting information on their credentials, offerings, price, configuration, and other relevant aspects of their products. Emerging technologies like virtual reality and augmented reality are being utilized to demonstrate their premium offerings and to excite the actual feeling of being at the project site.

Implementation of RERA -Real Estate (Regulation and Development) Act, 2016

Long before the Real Estate (Regulation and Development) Act 2016 (RERA) came into existence, home buyers were protected by other acts. However, none proved to beas beneficial for homebuyers as RERA has been. In states like Maharashtra, homeowners were protected by the Maharashtra Ownership Flats Act (MOFA) of 1963 before RERA came into effect.MOFA, just like the Real Estate (Regulation and Development) Act 2016 aims at protecting the interest of flat purchasers by bringing in transparency and discipline in transactions of flats by putting a check on malpractices.

However, RERA has brought back the trust of homebuyers in the market by consolidating the sector and plucking out unscrupulous players. Under RERA action is taken even in cases of defects in workmanship, quality, provision of services, or any other obligation that was made at the time of agreement for sale along with structural defects. In short, by offering homebuyers a coherent redressal system, RERA ensures that builders are held accountable for all their promises and offers which other existing laws failed to address transparently.

Introduction of GST (Goods and Services Tax)

In the context of real estate, GST is a major step towards financial transparency, which can be seen as emancipation from the prior convoluted and opaque taxation scheme. Having a greater certainty about how much the total cost of purchasing a home has allowed consumers to relax as the GST tax combines the majority of previous taxes into one.

REITs (Real Estate Investment Trusts) As a Form of Investment Vehicle

We saw the emergence of real estate investment trusts this decade, which was the trend two decades ago when private equity invested in real estate. Investments in REITs are made by pooling money together to invest in a collection of properties.

In the same way that mutual funds work, REITs enable investors to invest in commercial real estate portfolios that generate income from properties like apartments, hospitals, office buildings, timberland, warehouses, hotels, and shopping malls.

REITs have become the talk of the town because of their ability to generate higher returns than equity markets over the long term. Several positive points have been identified for REITs, including mandatory valuations, regular updates, research coverage, and disclosures.

Across India's real estate landscape, newer solutions are rising and will likely gain strength in the future. As people are slowly but steadily coming back to work, companies and corporates have also adopted the Work-From-Home Culture thus enabling a greater need for residential spaces that meet homebuyers requirements and choice. For eg: Homebuyers have increasingly been looking for properties with spaces for a personalised office setup. Developers are recognising that and finding out solutions to address the changing needs.

The government's increasing push for affordable housing for all will also pave the way for further development in the real estate sector in the years ahead.