Real Estate Industry: Challenges Of The Real Estate Industry

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In India the real estate sector has come a long way and is becoming the fastest growing markets. It is successful in attracting both domestic and foreign investors. The sector has transformed from unorganised to dynamic and organized in the past decade. The sector consists of four categories: housing, commercial, retail and hospitality. The growth is complemented by the growth in the corporate environment and office space demand. This industry ranks third among the 14 major sectors.

1.1.1 Growth drivers
The factors which are driving the industry are:
• Urbanization
• Growth in Tourism
• Policy Support
• Easier Financing
• Epidemiological Changes
• Growing Economy

1.1.2 Challenges
The Challenges face by the industry are:
• Lack of clear
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This will result in the economic downturn. It will become difficult for the new entrants to get a hold.
• Bargaining power of buyers: Powerful customers will be able to exert pressure to bring down the prices or increase the quality for same price. This will reduce profits of the industry. The bargaining power of the buyers is strong.
• Bargaining power of suppliers: the bargaining power of suppliers is very strong as they have the power to decide whether to fund a project or not and at what rate. They have become highly conservative after the economic downturn.
• Threat of substitute products: In this sector a substitute might be some totally new type of retail space, new location or rehabilitation. This threat and its impact on profitability is ambiguous and difficult to establish.
• Rivalry among existing competitors: Rivalry amongst existing competitors is strong due to the large number of firms operating in India. The services offered cannot be differentiated. In the current economic conditions, there is minimal profitability and only companies with large cash reserves are most likely to
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With the emission of greenhouse gases on a rise, and global temperatures set to rise at a rate of 2-3 degree Celsius, the scenario is likely to seriously affect developing countries like India.
The environmental impact of a building design, construction and operation industry is significant considering the fact that it consumes a major portion of the generated energy in this country.
Keeping this in mind, K.Raheja Corp is one of the first real estate developer in the country who has chosen to be at the forefront of being environmentally responsible albeit voluntarily and go GREEN. In what is considered as a landmark agreement, the company has signed a Memorandum of Understanding with the Confederation of Indian Industries (CII) to facilitate certification of LEED rated GREEN Buildings for all future projects across India. Green Buildings offer a range of economic and environmental benefits:
• 30% to 40% reduction in operation cos.
• Green corporate image
• Health and safety of building occupants
• Enhance occupant

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