In­dia needs to quickly fa­mil­iarise with the smart cities con­cept

With the fo­cus of the gov­ern­ment on cre­at­ing smart cities across In­dia, de­vel­op­ers have to be pre­pared for rapid trans­for­ma­tion

HT Estates - - HTESTATES - Van­dana Ram­nani Surabhi Arora

Should end-users ex­pect all the projects to be com­pleted on time? How soon a developer is able to de­liver the pro­ject will even­tu­ally de­pend on his (developer’s) fi­nan­cial health. Hav­ing said that, the bro­ker­age mar­ket will get ac­tive in the next few months. “Go­ing for­ward, it will be clear to buy­ers whether de­vel­op­ers were re­ally se­ri­ous about com­plet­ing the projects or were sim­ply us­ing the NGT is­sue as an ex­cuse,” says Anckur Sri­vast­tava of GenReal Ad­vis­ers.

Non-de­liv­ery of projects would also mean a rise in com­plaints pil­ing up in con­sumer courts.

As for new launches, the mar­ket may not see many launches as liq­uid­ity for builders will con­tinue to be avail­able at a pre­mium. “Buy­ers should not ex­pect a run-up in prices.

Now with the risks min­imised and in­ter­est rates com­ing down, this mar­ket will have im­mense po­ten­tial, es­pe­cially among end-users. In the years of im­passe after projects were held up in Noida, real es­tate ac­tiv­ity had shifted to Ghazi­abad, Noida Ex­ten­sion and Ya­muna Ex­press­way where stock is still avail­able in the ₹ 3,000 per sq ft price bracket. Th­ese mar­kets may not be im­pacted by the res­o­lu­tion of the NGT is­sue be­cause the stock is sig­nif­i­cantly ex­pen­sive, avail­able in the price range of ₹ 4,500 per sq ft to ₹ 8,000 per sq ft de­pend­ing on the qual­ity of prod­uct, in­fra­struc­ture and lo­ca­tion,” say realty ex­perts.

New launches may not take off im­me­di­ately but builders who still have land and are plan­ning to launch the last phase of their projects may do so in a year’s time de­pend­ing on how the mar­ket per­forms.

Ac­cord­ing to Sa­man­tak Das, chief econ­o­mist and na­tional director – re­search, Knight Frank In­dia, launches in Noida have come down con­sid­er­ably be­cause of the over­all econ­omy, re­duced sales and ad­min­is­tra­tive issues such as the NGT case. Out of the 10,000 to 15,000 launches in the area ear­lier, new launches had come down to around 4000. Till date, con­sumers were con­fused and de­mand was highly sub­dued. Fol­low­ing the NGT ban, buy­ers de­cided to wait while in­vestors found them­selves stuck with their in­vest­ments.

“Now that there is clar­ity on the is­sue, there will be much­needed ac­tiv­ity in the mar­ket but the over­sup­ply sit­u­a­tion will con­tinue to per­sist. How­ever, trans­ac­tions will start pick­ing up in the com­ing months. Even­tu­ally, new launches will also take place. The fes­tive sea­son may see some knee­jerk re­ac­tion from the mar­ket but the con­sumer will be cau­tious,” Das adds.

At this junc­ture when the gov­ern­ment’s fo­cus is to build smart cities across In­dia, we are en­ter­ing into an ex­cit­ing and crit­i­cal phase in real es­tate de­vel­op­ment where we have to re­design our built en­vi­ron­ment. The smart city has a ca­pa­bil­ity to trans­form the lives of res­i­dents as they are ef­fi­ciently man­aged cities which in­crease the qual­ity of life. Th­ese au­to­mated sys­tems help save time and en­ergy and make life easy and cost-ef­fec­tive for the res­i­dents. For In­dia, the smart city con­cept is rel­a­tively new. It will take time to re­ally cre­ate th­ese cities as this would re­quire a large amount of cap­i­tal, plan­ning and lat­est tech­nol­ogy.

For coun­tries like In­dia, the start­ing point of build­ing smart cities can be de­vel­op­ment of the smart build­ing con­cept in In­dia. Large fund­ing through private in­vestors and those abroad and sup­port­ing gov­ern­ment poli­cies will drive the business case for smart build­ings in In­dia.

Cur­rently, the per­cep­tion is that smart build­ing tech­nol­ogy is ex­pen­sive and unique but mar­kets can trans­form in a very short amount of time, with smart build­ings quickly go­ing from be­ing unique to be­ing stan­dard prac­tice.

The ad­van­tage of fol­low­ing smart build­ing con­cept is that they can be con­sid­ered as fu­ture-proofed as­sets. A smart build­ing is en­ergy- ef­fi­cient and an op­er­a­tionally ef­fec­tive build­ing that in­te­grates ma­jor build­ing sys­tems on a com­mon plat­form and shares in­for­ma­tion and func­tion­al­ity be­tween sys­tems. They use clean en­ergy and emit less car­bon emis­sions and thus can be re­ferred to as ‘fu­ture-proofed’ against changing gov­ern­ment poli­cies and shift­ing ten­ant de­mands as ten­ants in­creas­ingly un­der­stand the ben­e­fits of smart build­ings. Ten­ants who un­der­stand the ben­e­fits of smart build­ings may pre­fer them over com­pet­ing con­ven­tional stock. Good smart build­ing per­for­mance can also be seen as an in­di­ca­tor of build­ing qual­ity, and a com­mit­ment to good man­age­ment prac­tices. Build­ings that are more at­trac­tive to ten­ants can also en­joy stronger ten­ant re­ten­tion and shorter lease up and va­cancy pe­ri­ods.

More­over, re­duced costs, ef­fi­ciency in en­ergy and wa­ter con­sump­tion can re­duce out­go­ings, which can ei­ther be re­tained or used to in­cen­tivise ten­ants. Given that it can be dif­fi­cult to change the de­sign of a new build­ing once de­vel­op­ment is ad­vanced, it is im­por­tant to be pre­pared for a rapidly changing mar­ket.

For de­vel­op­ers i n I ndia, knowl­edge can be money. Gen­er­ally, learn­ing more about in­no­va­tive prod­ucts takes time and developer has to go through a fa­mil­iari­sa­tion process. Those who will in­vest in learn­ing quickly will com­pre­hen­sively find that deal­ing with smart build­ings be­comes easy with time and that they can ac­tu­ally drive down the costs of do­ing so and in­crease their re­turns. The ex­per­tise and depth of ex­pe­ri­ence of their de­sign and de­vel­op­ment team will be in­stru­men­tal in managing costs for de­vel­op­ers. The tech­nolo­gies and de­sign ap­proaches of smart build­ings and their abil­ity to per­form in op­er­a­tion have now been demon­strated in var­i­ous lo­ca­tions around the world.

With the fo­cus of the gov­ern­ment on cre­at­ing smart cities across In­dia, the busi­nesses have to be pre­pared for rapid trans­for­ma­tion. The shift to smart build­ings has only just be­gun, and will now ac­cel­er­ate very quickly with pro- ac­tive gov­ern­ment sup­port. It is the time for for­ward-think­ing de­vel­op­ers and land­lords to pre­pare them­selves to lead, rather than fol­low, the change.

IS­TOCK

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