India is now being eyed as a promising real estate market offering a significant untapped potential to be explored by the sellers and buyers alike. The steep rise in real estate can be attributed largely to the middle class of society. With the greater bulk of deals closed by the middle class, more and more developers are coming up with residential projects targeting this ‘now awaken and sincere buyer’ segment of the country. It thus goes without saying that the growth of the country’s middle class is directly proportional to the country’s growth. It is estimated that by the year 2025, the middle-class ratio of the Indian population will increase to as much as 600 million. In other words, the middle class will comprise more than 40 percent of the total Indian population.
At present, the middle-class count stands at around 170 million. This is an encouraging figure for the realtors as the housing demand for this segment touches a new high. The concept of integrated townships has revolutionized the housing segment and offers an opportunity to benefit from the growth of the rising middle class in India. Real estate can undoubtedly make hay due to advancements in the middle-class lifestyle. The middle-class today has a lot of real estate options to choose from and has become quality conscious with the improved standards of living in the wake of their economic growth. Earlier, when there were limited residential options for the middle class there was no scope for ‘choice’ due to limited economic resources. Even if this particular section wished for the better lifestyle they could not afford it in the past, but today things have looked up. ‘Quality’ and ‘true value for money’ are the foremost criteria for the middle class while purchasing a property.
Realizing this and keeping in mind the predicted housing needs of this particular segment, several developers are coming up with residential townships especially targeting the middle class that suits their taste and as well as their budget. During the global meltdown, the middle class experienced a grave curb on its spending habits as well as purchasing power. However, the same class regained the economic stability with the exit of the economic downturn and is now beaming with confidence in regaining the purchasing power with increased spending limits. The integrated townships in the suburban areas of main cities have got a positive response from the ‘now prosperous’ middle class. Integrated townships have introduced the concept of community living and include long-desired amenities like schools, shopping outlets, business premises, hospitals, and well-built infrastructure.
On-time delivery and successful completion of such large residential townships require an experienced developer with a clean track record. Slowly and gradually as the middle class gets a stronger grip on its finances and keeps advancing in monetary terms, the time is not far when the parameters of ‘luxury’ and ‘international standard’ will sit right beside ‘quality’.
The middle class is going gaga over the integrated townships and not that keen on purchasing a plot of land to construct a house because land ownership is a risky affair. Issues related to Clear title of the land or the rightful seller and the particular zonal regulation of land gives a thumb down to the purchase of land. In the case of integrated townships, the developer has the responsibility to check that everything is in place as per the existing norms. Reputed developers use all their resources and knowledge to build residential townships which an individual real estate investor is likely to lack. Another very important reason for the middle class to switch over from independent homes to integrated residential townships is the lack of proper infrastructure.
Even if a buyer successfully purchases a piece of land crossing all the hurdles of clear title, government approval, and zonal regulations, the infrastructure of the country is something that he cannot change on his own. Many locations remain underdeveloped due to lack of basic utilities (water, electricity, sewage, road network, etc. Integrated townships, on the other hand, are built at such a level that empowers the developer to construct a modern infrastructure meeting international standards right from a scratch. The developer ensures to build the townships in locations having a sound infrastructure or else create a robust infrastructure around the townships.
Nowadays, most of the developers are coming up with eco-friendly designs Rera Validate and practices. Many integrated townships have solar heating systems, rain-water harvesting and increased greener stretch, the need of the hour. These environment-friendly features attract people towards integrated townships. The challenge for the real estate market lies in being able to provide housing for all. As the middle class spearheads the real estate growth due to its increasing count, integrated townships visibly appear to be the best solution offering quality yet stylish lifestyle at affordable prices.