Rational Regulatory Regime And Enhanced Tech Interventions Will Drive The Realty Sector: Grant Thornton Bharat - PHDCCI Report

The PHD Chamber of Commerce and Industry (PHDCCI), in collaboration with Grant Thornton Bharat as Knowledge Partner, hosted the Real Estate Summit 2023, today at the Claridges Hotel in New Delhi. This landmark event brought together the entire real estate ecosystem, comprising of policymakers, industry leaders, capital providers and financial/ tax experts. A thought leadership report titled ‘Realising the potential of real estate’ was released at the event that delves into the potential of the real estate sector, considering the various aspects of evolving regulatory framework, trends, challenges around financing and how tech could transform businesses. 

Addressing the gathering at the event, Vishesh C. Chandiok, CEO, Grant Thornton Bharat, said, “As India grows towards a USD 7 trillion economy by 2030, the wider real estate ecosystem will become a major part of our GDP - from 6-7% currently to around 18% by 2030. This growth can be propelled even faster through a focus on strong governance, simple single window-type regulations and by leveraging technology as a differentiator, thereby making the sector more attractive to capital.”

Bringing global significance to the forefront, the report also talks about the relationship between ESG and carbon footprint. As a part of their short-term ESG goals, listed developers are targeting a 25% increase in their green portfolio by 2025-2030. With Indian cities projected to add 416 million urban dwellers by 2050, urban development is expected to impact carbon emissions significantly. Sustainable cities are the key to achieving the circular economy model for the real estate sector, facilitating the efficient use of resources, and minimising waste.  

Speaking at the event, Saket Dalmia, President, PDHCCI, said, “The growth of this sector depends on a culmination of regulatory, corporate and sustainability initiatives. As a growing economy with a massive population, the focus needs to shift to making use of alternate sources of energy for building a new India. Carbon neutrality is now a reality, and a juxtaposition of affordable and sustainable housing is the only way forward.” 

From an evolving regulatory landscape, emphasis was laid on implementing a single-window clearance mechanism for projects to streamline the flow of supply and demand, promote ease of doing business, and further attract investments. Moreover, the real estate sector in India is waiting to be granted industry status. This status would enable state and central government agencies to recognize the real estate sector as a distinct industry, allowing for the implementation of special programs and subsidies. 

Embracing technological changes in the real estate industry was the topic of a thought-provoking panel at the summit. Virtual tours, using AI and VR have revolutionised the way clients experience tours. AI has helped agents and brokers better predict the future rent and value of a property in a specific market. The tokenisation of properties using blockchain technology has also made buying and selling properties more transparent and efficient. Technology has improved the RE industry, empowering businesses to stay competitive and provide better experiences for clients.