Real estate trends have undergone a sea change in recent years due to advancements in technology, the changing lifestyle of home-buyers and increasing standards of living of consumers. Although, most trends show a positive impact on the industry, the rising costs and limited availability of resources is marring the image of the real estate industry.
A fallout for the same is that realtors are reshaping the housing sector by incorporating various technologies and construction methods that save time, money and labour.
Our Managing Director, Mr. Ramji Subramanjam, had written an insightful piece on the changing paradigm of the residential real estate sector in The Property Times. Read his in-depth analysis on the same below
Our current homes will not meet our needs of the future. With smarter technologies and construction coming in, it has allowed real estate players to reduce their costs and come out with sensibly-priced homes. With this, buyers are now looking for properties which will not pinch their pockets, thereby allowing them to devote their money for their day-to-day needs.
Realtors look to economies of scale through mass production of homes and reducing the cost of constructing the house. Young workforce and the first-time homebuyers do not prefer luxury homes because of the considerable sum of maintenance charges they need to provide on a regular basis.
Factors affecting the future of cost-effective homes
There are a number of things that are to be considered for sustaining the booming business of cost-effective homes. Here are a few:
Quality of Construction:
Cost-effective homes are considered to be sensibly-priced. Realtors have now moved towards enhancing their construction techniques, while maintaining costs. Technological advancements have allowed realtors to incorporate innovative operational models in their process of construction, for a number of reasons. Modular construction, a popular innovation that has now come to the fore in the real estate sector, helps save a lot of money on labour and time. Such innovations in the operating system would speed up the rate of construction, thereby reducing the time and cost of resources. This will further ensure the timely delivery of the projects in the best possible way.
Use of raw materials:The current real estate sector has taken to using good quality raw materials to ensure a better product. Realtors have also been making use of locally- available raw materials so as to cut down on the transportation costs.
Life Cycle cost is reduced:As a result of using quality construction techniques and raw materials, home-owners save on the lifecycle cost. Thus, the lifecycle of the property gets better with minimum or no expenditure involved.
Mass production:Mass production has benefited cost-effective homes to a great extent through economies of scale. Realtors these days believe in mass production as it is one of the best ways to cut the overall production cost. Real estate developers with multiple projects follow the concept of mass production as a means to avoid underutilization of resources and thereby the costs associated with it and the entire production. This enables them to sell their units at competitive prices to prospective home-buyers.
360-degree in-house approach:Incorporating a 360-degree in-house functional model allows realtors to build in-house teams for the designing, construction, distribution and so on. This doesn’t allow for outsourcing of the work to other agencies, thereby, saving a considerable sum of money. Having a customized team for the entire process, right from the designing, to quality checks, to block work and fabrication. This helps in monitoring and evaluating the progress of projects, right from its construction to delivery.
The future of cost-effective homes will be majorly affected by smart technologies that are evolving with each passing day. These technologies will be beneficial as they help in achieving accuracy in any project. Realtors need to adapt to the changing construction techniques and the emerging technologies. Absorbing these technologies into one’s operational model and simultaneously providing cost-effective homes to the home seekers will be a great challenge for all real estate developers in the near future.
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