1. MARKET FORCES IN REAL ESTATE 2014 TO 2020
AFFORDABLE HOUSING & MID SEGMENT RESIDENCES ARE PERFECT PARTNERS:
Providing safe, sturdy,sustainable housing remains the top ranked issue for India.
Today’s market is also being shaped by increasingly stringent environmental and economic regulatory
mandates.
Low-cost housing and mid segment residences is the only answer to the rise of urbanization across the country.
While overall demand growth is slight in tier III areas, the outlook for “Affordable” segment is positive to
urgent in Tier II & I urban cities.
We at VEPMC forecast that the next trigger for high volumes in Real Estate & long term brand generation will
be from this segment and YOY growth may double in the next 3-4 years peaking to capacity by 2020.
Affordable segment using local resources thereby helping reduce greenhouse gas emissions, create additional
operating work forces should definitely attract liberal funding & tax incentives by this enterprising
Government at center.
Rising literate population and sustained job opportunities in modern India, along with the willingness to
improve upon the old archaic laws of the land has woken up the common man to the fact that till now the total
efforts made by various governments and planning commissions made a mockery of India’s independence and
unnecessarily made real estate unaffordable for the masses.
Effective asset management, modern project management techniques, quality control, selection of correct local
material and prudent capital planning will enable Real Estate companies to optimize expenditures to meet
business objectives
EMERGING TECHNOLOGIES OFFER MORE OPPORTUNITIES THAN CHALLENGES
Emerging technologies, such as demand-response and advanced applications, can help Real Estate companies
meet the challenges of the modern day , positive thinking Netas while meeting citizen needs. However, the
benefits of emerging technologies can be overshadowed by the challenges of integrating them into existing
networks.
While infrastructure is increasingly a part of government’s target for growth & employment, achieving the full
all round development cannot be sans a push towards “Affordable” housing, with proper infrastructure,
medical, educational & employable opportunities. . Data from all our planned programs of previous
government can help in planning and deployment of an expanded scope of housing needs, including project
management, integrated with absolute quality control and stress on usage of local materials. .
Early adopters are starting to see that faster approvals plus access to easier & long term financing have been
the biggest hurdles in achieving set targets.
Newer technologies will also play a role. The recent development in solar power at a lower capital cost and
subsidies along with further adoption of residential rooftop solar and wind power generation is viewed by
some as an opportunity to enhance utility demand at lower costs. This has been not successful because others
see the widespread adoption of home energy management technology as a threat to traditional operating
models.

2. REGULATORY SHIFTS: MANDATES SPEED CHANGE
VEPMC team finds regulatory compliance as the primary driver for enhanced low cost housing in the next five
years. Recent amendments to some of the archaic laws & regulations has spread a positive environment and
will likely have significant cost implications (in case of additional changes in regulatory & taxation laws) for
the Real Estate on the whole.
The intent of using locally available material in case a subsidy is announced on converting carbon credits (
cutting carbon dioxide emissions from existing fossil fuel plants) would create planning challenges for
consultants like us.
While the existing laws. remain uncertain with regard to the final effects of carbon dioxide rulemaking, it is
clear that regional differences will affect its impact. All agree that the rule in its current form has the potential
to create a major paradigm shift for entire Real Estate models of India.
INDUSTRY AT CROSSROADS
This report examines an industry at a crossroads. It views Real Estate industry issues through the lens of an
economic recovery catalyzed by technological innovation, a back to nature revolution, and the rise of common
man housing. In this climate, the decisions the Govt make will have effects that will be felt decades from
now.
Real Estate companies & Government must prepare to address the following changes:
• Adoption of liberal policies having single window clearances for Affordable housing and suitable subsidies
to catalyze huge housing fulfillment.
• Creation of new technologies helping usage of locally available materials .
• Removal of old archaic laws and replacing with .
• A large percentage of the industry is at or nearing retirement age.and also ready for senior citizen community
living.
Chandresh Makhija
VEPMC( VE Project Management Consultancy)
Mumbai, INDIA
chandresh.pmc@gmail.com