Rohit Gera - Executive Director, Gera Developments
From building construction to development, the real estate industry in Pune has changed for the better, opines Rohit Gera

The real estate development industry has seen a tremendous change for the positive in the last decade. Business rules have changed drastically - there was a time where getting land cleared was considered a core competence, when the customer was happy to end up getting his home (regardless of the quality) and getting a home loan was a matter of pride. Today, core competence has changed to the requirement of actual business skills - the kind that are taught in business school - quality construction has become a pre-requisite are employing direct sales agents to visit your house to get your paperwork processed.

Turning pro

The construction industry today is far more like any other industry where production, marketing/ sales, brand equity play a critical role. This change has not only happened in the arena of the customer and the builder. It has encompassed even the landowner. From the days of the landowner selling the land to the builder, or becoming a builder himself, even the land owners are today realizing that the business requires far more than having access to an architect and a contractor.  This is evident from the shift towards joint ventures between landowners and builders. This is recognition that the builder does add value to the process and the business is specialized and requires more than just ownership of the land or construction of a mere structure. The landowners today recognize the value of the name and reputation of the builder, the ability to produce a quality product (which is a prerequisite for today's business environment).

Finance

Another area where a lot of change has been seen is in the area of financing of property purchases. The increase in the housing loan option and a more rational tax regime has led to a virtual demise of the unofficial component that the industry was famous for at one stage. Today, all payments are made officially. This has brought about a lot more transparency and comfort for purchasers in the industry, and it is not more the good fortune of only business people to be able to buy a home.

Lower interest rates have brought a number of persons closer to realizing their dreams of owing their own homes. Ten years ago, a fresh MBA graduate earning Rs. 1 lakh, was entitled to a loan of about Rs. 2.5 lakhs. This same MBA graduate today has a starting salary of about Rs. 3 lakh and more importantly, the lower interest rates have given this individual a loan eligibility of over 10 lakh. This change has happened in all segments and all categories whether engineering, entertainment, retail etc. To cite an example, a decade ago, Pune had a couple of departmental stores. Today, with the retail boom, there are a number of large format retail stores in Pune already. These stores are corporate entities employing managers and paying salaries compared to other industries.

Tech savvy

The IT sector in the city has contributed to a major change in the industry. Apart from constituting a large chunk of the buyer segment, IT has helped in the introduction of new forms of technology, which have changed marketing of real estate with almost all developers providing information on the Internet. Today, not only are websites a platform for sourcing information, but customers can actually check the stage at which construction has progressed at the project they have bought in, use the website to make their payments, post their queries, check the location of a project on sites like googleearth.com, and so much more.

The use of improved, high-tech products as a part of the features as a part of the features and amenities being provided by a technology-savvy, innovative real estate company plays an important part in enhancing the overall customer experience. For example, there are buildings that have automation systems that monitor the generator, elevators, water tanks as well as the natural lighting levels (to automatically switch on the building façade lighting as it gets dark). Today technology has been effectively used for motion sensor lights in the basement that come on when a person drives or walks into the basement, thereby saving electricity.

Endnote

A huge shift in perception has happened over the years, from being viewed as an unorganized building construction sector to being looked at as an organized real estate industry. These changes have led to enhanced customer service, better quality products, more homes being built and far more satisfied customers than before. Let us hope this revolution continues at a fasters pace - it will be in the long-term interest of the entire industry.

Rohit Gera, Honorary Secretary of The Promoters and Builders Association of Poona and Executive Director, Gera developments