The past decade has witnessed a period of economic transformation of the Indian Real Estate Industry. After the Global Financial Crisis, the pace with which India bounced back as compared to the most other economies across the globe is nothing short of magnificent. The moot point to be debated now is what next? Given the state of the Real Estate Industry in India, are we well poised to leverage this quick recovery and ensure that in coming 5-7 years, this industy is at par with some of the best in matured markets like Asia Pacific and US? A comfortable ground that we are on today, does it allow us to strengthen our foundation and leapfrog ahead to be recognized as one of the best? India has started to receive similar accolades from around the world for various other industries. Are similar accolades for the India Real Estate industry just around the corner?
In this paper, we discuss the answer all the above questions by analysing the market forces that impact the dynamics of the Indian Real Estate Ecosystem. A typical real estate ecosystem comprises of different stakeholders that include architects, developers, government/regulatory authorities, banks, private equity players, other funding agencies, buyers, brokers, and property consultants.
For any such ecosystem to remain successful over a long term, it is imperative that all its key industry participants are on a level playing ground despite the changing real estate dynamics. The dynamics in India’s real estate ecosystem is driven by ‘Extrinsic’ and ‘Intrinsic’ factors (Figure 1). While the extrinsic factors are those which impact the dynamics from outside the real estate ecosystem, the intrinsic factors are those which impact the dynamics of the ecosystem from within.
With a vision to drive the transformation of the country’s real estate best practices to the next level, Confederation of Indian Industry (CII) and Jones Lang LaSalle (JLL), through this paper, aims at gaining perspective on factors that could turn India into a global Real Estate Powerhouse in the next decade.