By Mr. RamjiSubramaniam,Managing Director at Sowparnika Projects and Infrastructure Pvt. Ltd.
New Delhi, July 14, 2018: To a common man, buying a house amounts to investing in the future. With advancements in technology, home-buyers’ perception of the housing sector has changed significantly. Along with this, the requirements of home-buyers are changing with every passing day. The reason behind this is the change in the standards of living of the consumers. Till recently, the real estate sector was marred by a negative image due to the rising costs and a limited availability of resources. However, having realised the changing requirements of the consumers, realtors are now incorporating various technologies and construction methods which could shape the future of housing by saving time, money and labour.
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.
Corporate Comm India(CCI Newswire)