2020: A promising year for the real estate sector

Authored by M Murali, Chairman and Managing Director, Shriram Properties Ltd “I foresee 2020 as a promising year for the real estate sector, with the government’s push for mid-income, affordable housing and infrastructure growth. Any industry that adapts to change grows faster. The regulatory and tax reforms has seen the industry moving towards a consolidation mode with only organised players, with proven track record to be on ground. Sales momentum and volume has already picked up well with respect to the developers with good brand image and this will go up further in the coming year. Execution capabilities and on time delivery will be the future determinants. In 2020, another key trend would be - builders looking for scalable and asset light business models, primarily through ‘development management’ model. I feel that Development Management (DM Model) will emerge as a potential business model, as it generates fee -based income without capital outlay.”