INDIA Trends and Developments Contributed by: Vivek Chandy, Archana Tewary, Brijita Prakash and Utsav Johri, JSA
– having announced a huge slum redevelopment pro - ject in Dharavi, Mumbai. This is perhaps long overdue since such prime locations will inevitably be redevel - oped in all the major cities in India over the next few years. Smart cities The government’s focus on developing smart cities has significantly benefited cities such as Pune, Bhu - baneswar and Indore. Smart city projects transform previously underdeveloped regions into thriving real estate hubs. For instance, Dholera in Gujarat, which is being developed as a smart city from the ground up, is being developed to become a major industrial and residential hub, with state-of-the-art infrastruc - ture and world-class amenities. The appreciation in property values, coupled with the increasing demand for smart and sustainable homes, makes these cit - ies attractive investment destinations. Additionally, the development of infrastructure and connectivity in smart cities reduces the risk associated with real estate investments, ensuring better returns over time. However, the development of such projects in smaller cities continues to face a few challenges, including inconsistent or complicated regulatory regimes, lack of skilled labour impacting timelines and quality of construction, higher cost of materials, etc. In some smaller cities, there already seems to be a saturation in some segments such as residential real estate, leading to stunted growth. Urban residential real estate trends As a reaction to global developments, the demand for luxury real estate will likely continue to increase, reflecting a surge in interest from non-resident Indians in luxury properties that meet global standards. Luxury farmlands and vacation homes Several developers are offering luxury “second home” or “vacation home” projects, including villas in tour - ist destinations and managed farmlands across India. These projects reflect the increased spending ability of Indians but lower the entry barrier for individuals to acquire such real estate assets in India. Such pro - jects are often set up as limited liability partnerships or other structures which allow the owners to share the project. Developers also take care of maintaining and even renting such projects when not occupied by
the owners, making such projects even more attrac - tive to investors. Digitisation of land records Governments across the country have been working towards digitising land and revenue records, which is a key step towards ensuring security of title in India. Such records are being made accessible online, reducing the need for manual intervention and provid - ing an easy means to verify title to some extent. Gov - ernments are also endeavouring to use drone technol - ogy and advanced mapping techniques in boundary verification and to prevent encroachment. A notable development is the implementation of the eKhata system in Karnataka, which is an electronic system to streamline property tax documentation and management. eKhatas are now a compulsory pre - requisite for parties seeking to register documents pertaining to immovable property in Karnataka. This initiative enhances the accuracy and reliability of property-related information, thereby improving the title diligence process. Technology absorption in real estate Technological innovation is also transforming the real estate sector. Property technology (PropTech) compa - nies are introducing solutions such as AI-based prop - erty valuation tools, virtual property tours, automated lease management platforms and digital transaction systems. These technologies help improve efficiency across the real estate value chain – from property discovery and due diligence to asset management and tenant services. Blockchain technology is gain - ing popularity in real estate, aiming to enhance trans - parency, security and efficiency in the sector, with applications including land records management, faster transactions and fractional ownership. There is also a pilot project being undertaken in Maharashtra to integrate blockchain technology into land records to ensure tamper-proof ownership records are cre - ated and maintained. In India, its adoption had been slow due to regulatory issues and lagging digitisa - tion. Despite these obstacles, blockchain’s potential to revolutionise property transactions was significant, promising enhanced security and streamlined pro - cesses as these challenges were addressed.
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