By Gurdeep Singh
For centuries, the real estate sector has been a critical pillar of every economy, driving economic growth, creating jobs, and encouraging infrastructure development. And since we have already entered the year 2024, the government is preparing for the upcoming Budget. Thus, as the anticipation builds on the new announcement, it is crucial to develop measures that move the real estate industry ahead and contribute to overall economic growth.
With benefits, the industry possesses few obstacles; one significant concern that requires attention is the inflow of cash. Traditionally, the industry has had liquidity problems, limiting its capacity to adopt new initiatives. In the past fiscal year, the real estate sector witnessed a liquidity boost of 15 per cent, resulting in a significant increase in project start and completion rates. Thus, allocating a considerable Budget to address liquidity difficulties is much needed to boost growth.
Furthermore, expanding affordable housing plans is also critical. In today's contemporary era, more and more people are moving to cities, and we need more affordable homes. Thus, the government in FY24 must put their money into low-cost housing to help solve any shortage. Furthermore, by taking considerate actions, they can also create jobs and make the economy stable. Reports say that organisations investing more in such housing saw jobs in real estate up by 20 per cent.
Moreover, the government can improve progress by merging monetary rewards with quick approval processes and less official hassle. This is significant because delays in granting approvals can inflate project costs and slow the delivery time. If the real estate sector could streamline their approval system, this could significantly catalyse their workflow. In the last fiscal year, firms that implemented such changes managed to reduce their project approval time by 25 per cent, leading to a more dynamic and responsive real estate market.
It's worth considering adopting sustainable and eco-friendly practices as a viable option for real estate. Because of the global shift toward sustainable development, environmental awareness has become a pivotal factor in real estate decisions.
Investing in green infrastructure not only aligns us with international sustainability targets but also attracts a growing segment of environmentally conscious customers. Research has shown that companies with a focus on sustainable real estate development have seen a 30 per cent increase in property values and a corresponding surge in demand.
In this ever-evolving era, bringing technological advancement into real estate could make it even better. This would further make purchasing and selling property easier, safer, and reduce fraud. Furthermore, focusing on proptech could change the face of real estate. Data says that businesses using Proptech have seen 40 per cent fewer disputes over property deals and a 15% increase in satisfied customers.
The industry requires skilled people to keep the sector growing. By investing in training and skills development programs, the real estate sector can maintain a consistent supply of qualified professionals who can effectively use and implement technology in their work. Organizations that have implemented skill cultivation initiatives for experts have seen a 20 per cent rise in task proficiency. This increase in proficiency has also led to a corresponding rise in finance specialist assurance. Additionally, the programs focus on providing ongoing training opportunities for industry specialists to continually improve their skills. As the level of expertise improves, projects tend to proceed more smoothly with fewer challenges. In fact, when properties are represented by skilled professionals who understand market dynamics and regulatory changes, they are more likely to be promoted soon.
As the government prepares for the 2024 Interim Budget, a strategic focus on the real estate industry might have far-reaching consequences for economic growth. By resolving liquidity problems, encouraging affordable housing, simplifying approval procedures, embracing sustainability, integrating technology, and cultivating a competent workforce, the real estate industry may become a driving force behind infrastructure expansion. Thus, these pre-Budget measures have the potential to pave the way for a thriving real estate industry, which will contribute significantly to the nation's overall economic health.
The author is chairman and founder at Jujhar Group.
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