Is India Ready for a Real Estate Transformation? Potential Impacts of G20 Summit 2023
The 2023 G20 New Delhi summit led by Indian Prime Minister Narendra Modi, will be held on September 9-10 and is set to transform different sectors of India. One of the sectors that stands out is the real estate industry. In the article, we'll examine in depth how the expansive G20 agenda could change the real estate landscape in India.
Table of Contents
1. The G20 New Delhi Summit: A Transformational Event
2. Possible Impacts on Real Estate:
A. Green Development, Climate Finance & LiFE
B. Accelerated, Inclusive & Resilient Growth
C. Technological Transformation & Digital Public Infrastructure
3. Real Estate's Role in India's G20 Presidency
A. Financing Tomorrow's Cities
B. Energy Transition
C. Health Care Infrastructure
4. ADB's Support for India's G20 Presidency and Real Estate
5. A Transformative Era for India's Real Estate
1. The G20 New Delhi Summit: A Transformational Event
In 2023, the G20 New Delhi Summit has an important historical moment as it is the first G20 summit to be held by India as well as South Asia. With India as the leader, the summit has established high-level goals that span across the globe. Although all of these goals are of significance, we will put the spotlight on the most important areas that could affect India's real estate industry dramatically.
2. Possible Impacts on Real Estate
A. Green Development, Climate Finance & Life:
The commitment of India to sustainable development as well as climate financing is directly affecting the real estate market. As the climate change issues grow increasing demand for eco-friendly and energy-efficient constructions is increasing. Real estate developers are increasingly adopting green building practices as well as renewable energy options. The Indian Green Building Council (IGBC) says that Green buildings can conserve potable water up to an extent of 30 to 50%.
B. Accelerated, Inclusive & Resilient Growth:
Inclusive growth, which is a key component of India's G20 agenda, is reflected in solving the housing needs of different income classes. The government's "Housing for All" initiative has already led to affordable housing initiatives. the emphasis on inclusion could increase the growth of the real estate market, especially in the segment of affordable housing. According to a study by ANAROCK, the urban housing shortage in India is expected to be around 38 million by 2030.
C. Technological Transformation & Digital Public Infrastructure:
India's drive for technological advancement coincides with the Proptech (property technology) revolution that is taking place in the real estate market. The use of digital platforms and tools, like virtual tours of properties as well as blockchain for property transactions, as well as AI-driven property management is changing the way that real estate operates. According to an industry expert analysis, the second largest Proptech market within APAC is India which has a Proptech investment of $9.1 billion in 2022.
Also Read: BUILDING VALUE THROUGH DIGITAL TRANSFORMATION: THE NEW LANGUAGE IN THE REAL ESTATE SECTOR
3. Real Estate's Role in India's G20 Presidency
A. Financing Tomorrow's Cities:
As India concentrates on making its cities the engine of economic development, real estate is taking the lead in urban development. The need to upgrade infrastructure, reliable water supply, efficient waste management and affordable housing open the door to possibilities for real estate investments. Based on estimates India will require around $5.5 trillion of urban infrastructure investment in the next 15 years.
B. Energy Transition:
The commitment of India to a fair shift to renewable sources of energy provides an enormous opportunity for real estate. Renewable energy projects that use solar energy, green certifications, and energy-efficient buildings are becoming more important. By 2021 India was the 4th highest installed solar capacity in the world and the capacity of solar power has been estimated at 61.97 GW as of 30th November 2022.
C. Health Care Infrastructure:
The pandemic highlighted the importance of having a strong healthcare infrastructure. Healthcare centers and hospitals are rising and directly impact the real estate market. The medical infrastructure is changing to accommodate the needs of top-quality healthcare, creating opportunities that real estate professionals can develop working in this field.
Also Read: 5 Top Hospitals in Whitefield for Comprehensive Healthcare Services
4. ADB's Support for India's G20 Presidency and Real Estate
The Asian Development Bank (ADB) is actively supporting India's G20 Presidency in areas closely related to real estate. For instance, ADB's assistance in transforming cities into "Cities of Tomorrow" focuses on climate-resilient urban planning, which inherently involves real estate development.
5. A Transformative Era for India's Real Estate
With a focus on sustainability, inclusion, and advancement in technology real estate investors and developers will play a major role in shaping the direction of India's growing urbanization. As these objectives become tangible initiatives, the real estate market in India will transform dramatically, bringing many opportunities for expansion and growth.
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The rental contract is for a standard of 11 months. However, you can choose how long you want to stay.
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Is there any Commitment/Lock in period?
Lock in period is a commitment given by the tenants to us in order to avail free common area maintenance charge. Lock-in period should be a minimum of 6 months to avail free common area maintenance charge.
Can you renew or update only the lock in period?
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What is the difference between contract period and lock-in period?
Both aspects operate independently. Contract period is the 11 month legal term under which tenants will rent the flat with KOTS. Renewal of contracts is possible. On the other hand, the lock-in period refers to the duration for which the tenant commits to remain without terminating the contract, enabling them to take advantage of the free common area maintenance charges offered.
What happens if you terminate the contract (or) vacate the home during the Lock-In period ?
The common area maintenance charges offered will be reversed and you will be charged monthly common area maintenance charges for the entire stay duration.
Is there any notice period to terminate the contract?
Yes, the tenants have to serve 45 days notice period before they terminate the contract.
Are there any painting charges or move out charges?
Move out charges include painting charges to be paid (one time) by the Sub-Lessee in advance or in pre-paid manner at the time of booking the flat. If the rented flat is of Studio / 1BHK flat, painting charges are Rs 14,500 (Fourteen thousand five hundred.) and if the rented flat is a 2BHK flat, painting charges are Rs 19,500 (Nineteen thousand five hundred.).
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