The realty industry as a whole enjoyed a healthy year in 2022. The real estate market rebounded strongly this year thanks to a number of growth-supporting factors like increased house sales, increased client demand and activity, and a decline in unsold inventory, all of which prompted a subsequent uptick in project launches, said Narayan Bhadana, Managing Director of 4S Developers

Excerpts of the interview…

1) As the New Year draws near, to begin, let's reflect on this year. How did 4S Developers fare in 2022?

2022 was a great year for us. It marked eight glorious years of existence in the real estate market. In this year we also achieved the milestone of delivering more than 1.1 million sq. ft. of residential space to more than 500 families.

The year also marked the successful delivery of Phase 2 of our project Aradhya Homes which was launched in 2020. We had already created a benchmark in delivering the phase 1 of Aradhya Homes in record time in 2021.

2) In what state is India's real estate market at the moment?

The Indian real estate business is predicted to reach $1 trillion in market value by 2030. Without a doubt, this bodes well for the future of the real estate market. We have observed substantial growth in retail, hospitality, and commercial real estate in the current year, therefore providing the essential infrastructure for the nation's expanding demands. With increased demand for both business and residential spaces, the Indian real estate market has also recently experienced rapid expansion. Recent data shows that the Indian real estate sector received $322 million in private equity investment during Q3 2022.

Investors play a critical and pivotal part in this industry. Inflationary pressures are rising, which investors are watching closely since they threaten the global economy's precarious recovery. The global economy is slowing down generally due to the effects of the Russia-Ukraine conflict, tighter monetary conditions globally, and the lingering effects of the epidemic. The residential sector is also showing signs of life, with allocations increasing in response to rising demand and strong sales. 

3) What do you think are the current challenges the real estate industry is facing?

Possibilities and threats are like two sides of the same coin. Even though India's real estate market is expanding, it is not devoid of obstacles. To highlight a few:

• Identifying the perfect location

In today's market, real estate agents must solve the dilemma of guiding their clients to the best possible neighbourhood. A company's infrastructure requirements might cause it to postpone its choice on where to construct or relocate. The real estate market may tank if this decision is delayed indefinitely. Homebuyers heavily weigh conveniences like public transit and proximity to major thoroughfares when deciding where to settle down.

• Effective digital marketing approach for the real estate industry

There is a significant gap between the potential of digital marketing and the actual performance of most real estate businesses. Everything is going online in today's digital world, and as a result, the efficient use of digital marketing channels to establish a client base and generate sales is one of the primary difficulties that the real estate sector confronts.

• Keeping up with advanced technology

The constant development of new technologies is another obstacle that the real estate sector must overcome. This entails both sophisticated technology in the houses and apartments that customers will be looking for as well as in the real estate sector itself. Even though virtual tours have been around for some time, they are only going to get more complicated in the years to come, which will necessitate real estate professionals to adapt. Furthermore, many prospective buyers may choose to examine a home online before making a personal visit, so a real estate company that does not adapt to the changing times will likely lose clients.

4)How did 2022 turn out for the real estate sector?

The housing sector experienced a period of resurgence following nearly two years of declines in revenue and sales due to social distancing regulations and the economic shutdown imposed to limit coronavirus fatalities.

In 2022, the construction industry was shaken by a number of factors that slowed its return to normalcy. These factors included a sharp uptick in housing prices, a rise in input costs, interruptions in the supply chain, and a rise in building material prices. The real estate, building, and infrastructure sectors all felt the effects of the economic downturn brought on by the intensification of the conflict between Russia and Ukraine.

The industry as a whole enjoyed a healthy year in 2022. The real estate market rebounded strongly this year thanks to a number of growth-supporting factors like increased house sales, increased client demand and activity, and a decline in unsold inventory, all of which prompted a subsequent uptick in project launches.

5) Will the increase in demand for luxury housing continue to grow in 2023?

An increasing number of Indians will seek out high-end homes in 2023. More individuals will be in the market for luxury properties as the middle class expands, personal earnings rise, and metropolitan populations grow. As long as demand exceeds supply, this pattern should result in ever-increasing luxury home prices. Developers and real estate agencies will need to offer a variety of high-end properties that appeal to the tastes of modern homebuyers as the market for luxury housing continues to expand.

6) How 4S Developers are preparing for 2023?

We are coming up with two new residential projects at the strategically acquired land parcels in Gurgaon & South of Gurugram, Sohna. These land parcels are in approximately 25 acres of size. In the coming year, we have the plans to develop 2.2 mn sq. ft. of space worth Approx. Rs. 2500 crores at the land parcels mentioned above.