Anuj Puri, Chairman of ANAROCK Group, recently shared his expert insights on the dynamic transformation of India’s real estate sector in an exclusive conversation
Words by Neeraj Tiwari
From the role of technology in reshaping the industry to the pressing need for sustainable development, we catch up with Anuj Puri and discuss the challenges and opportunities ahead. This free-ranging conversation also touched upon the future of affordable housing, the rise of hybrid workspaces, and the future landscape of the sector. Here are some edited excerpts from the interview.
How is technology reshaping the real estate sector in India, particularly in property management, sales, and customer engagement?
Anuj Puri: Technology is fundamentally changing the landscape of India’s real estate sector. Online platforms, artificial intelligence, and automation have enhanced the efficiency of property listings, making tasks such as virtual tours and document processing much more streamlined. Automation tools are also key in property management, helping with maintenance, tenant interactions, and other daily tasks.
On the sales front, AI-driven analytics allow for personalized marketing strategies, offering potential buyers and renters a transparent and customized experience. Overall, technology builds trust with customers, enhances engagement, and ultimately makes transactions more convenient.
With the rising demand for affordable housing, what strategies should developers adopt to meet this need?
AP: While the demand for affordable housing is high, we’ve observed that the target audience for this segment is adopting a ‘wait-and-watch’ approach. Interestingly, it’s smaller developers who are more active in this space rather than larger, listed players.
Several factors have driven developers away from affordable housing in recent years. First, the pandemic severely impacted the buying capacity of this target group, leading to reduced demand. Consequently, developers shifted their focus to the more profitable premium and luxury segments.
Second, even before the pandemic, profit margins for affordable housing were razor thin. Post-COVID, rising costs for raw materials like steel and cement, along with increased labour expenses, further squeezed those margins. As a result, many developers opted out.
Lastly, several incentives and interest stimulants for affordable housing developers expired over the past two years. To revitalize this crucial segment, the government needs to introduce high-impact measures such as tax breaks for both developers and buyers to make affordable housing more viable.
How have recent government policies affected the growth of real estate in India? Are there any standout initiatives?
AP: Government policies have had a significant influence on the real estate sector, particularly with the introduction of the Real Estate (Regulation and Development Act), or RERA. RERA has fostered greater transparency and accountability, rebuilding trust between buyers and the industry.
Additionally, initiatives like Pradhan Mantri Awas Yojana (PMAY), which offers homebuyers subsidies, have spurred demand for housing by making homeownership more affordable. Further, tax incentives on home loans and reduced GST rates for under-construction properties have enhanced the appeal of real estate investments.
Alternate Investment Funds (AIFs) have also been vital, as they provide much-needed capital to projects stuck in limbo due to financial constraints. We look forward to more such government interventions that can stimulate growth.
How important is sustainability in real estate today, and what practices are being adopted to promote eco-friendly construction?
AP: Sustainability is no longer optional—it’s essential. With growing environmental concerns and government regulations, developers are increasingly adopting eco-friendly practices.
Many large developers now use sustainable building materials, design for energy efficiency, and implement water conservation techniques. The number of projects obtaining certifications like LEED and IGBC is also rising, reflecting a broader shift toward green development.
Sustainable buildings not only reduce carbon footprints but also cut operational costs, making them attractive to both environmentally conscious buyers and investors. Practices like rainwater harvesting, waste management, and renewable energy use are becoming more common.
What factors are driving foreign investment into India’s real estate market, and how can the country attract even more?
AP: India’s economic growth, burgeoning consumer base, and regulatory improvements, such as RERA, have made the real estate market a magnet for foreign investors. Projects such as Smart Cities and infrastructure development also increase the sector’s attractiveness.
Moreover, the expanding middle class and growing urbanization continue to fuel demand for commercial and residential properties. To further boost foreign investment, India could focus on simplifying land acquisition procedures and ensuring stable, investor-friendly policies. Enhanced infrastructure development would also reassure investors and make the market more accessible.
