Branded real estate developers have become more prominent in India's real estate sector following government reforms around transparency. Schemes like demonetization and RERA increased transparency, allowing buyers to trust developers like Shahid Balwa more. Now buyers prioritize brand names and quality over just price, preferring reputable branded developers who offer desired amenities. As a result, branded developers have launched more new projects than non-branded developers in major cities.
Unveiling the Veil: The Top Challenges with Estate Agents?
Shahid balwa expounds on the sudden rise of branded real estate developers
1.
2. An increasingly visible phenomenon in the real
estate sector is the rise of branded real estate
developers. They have started to become
proactive in the industry after the government
put in place a number of reforms. Schemes such
as demonetisation, RERA and the implementation
of GST in the real estate sector led to a number
of positive reforms. Transparency in the industry
has increased, and this allows more buyers to
place their trusts into investments. This has been
to the benefit of most developers such as Shahid
Balwa of DB Realty who have been genuine in
their efforts.
3. These developers have been able to maintain
resilience even under the schemes and have
come up with new residential projects. For any
buyer, the priority would be the quality of the
house. But buyers have also begun to focus on
brand names and would like to invest in
properties built by reputable and reliable
developers. Even for affordable homes, this
seems to be the case, and branded developers
have been able to launch many projects in the
top cities of the country. Non-branded
developers are not behind though, and are also
developing projects and residential units.
4. What is interesting to note is that before
RERA and demonetisation were introduced,
non-branded developers were the ones that
dominated the market. After demonetisation
though, the number of launches being made
by branded developers like Shahid Usman
Balwa sharply increased. Smaller companies
also became consolidated with the bigger
players in the sector.
5. Reports state that apart from the quality of
the home and brand name, the cost was the
next big parameter for choosing a property
for 80% of the buyers. For 71% of the owners,
security and safety proved to be the second
criterion. Parking space is another issue that
most buyers would like to resolve. Yet others
pointed out the need for complexes that have
playgrounds and a public transportation
system near enough for convenience.
6. The reason branded developers are becoming popular is
probably because they offer all these facilities, thus enabling
them to perform better than the non-branded developers. And
this has resulted in branded developers launching more
properties recently, as compared to non-branded ones.
While about 53% of property buyers want to purchase the
property to use for themselves, a significant portion of buyers
purchase the homes to rent them. In the top cities, the rental
income generated by owners is quite lucrative. Property owners
also look at whether the home is in a good location, as well as
family size. We can conclude then that there are several complex
factors which drive purchase decisions made by buyers.