Improvement of Indian Residential Real Estate Asset Demand and Delivery for Enhancement of Construction Industry Output

Abstract

In the context of an absence of studies examining the interrelationship between Indian construction industry and residential real estate sector, the study aims to develop and test a conceptual framework aimed at stimulation of construction industry output through optimization of housing market, followed by development of improvement frameworks for demand and supply side forces of housing market. Means of stimulation of construction industry by residential real estate sector were categorized based on the intent behind purchase of residential real estate assets or inflow of capital into housing development entities. Housing market was examined to identify factors constituting consumer-centric delivery and consumer-empowered demand. Supply side of housing market was probed to identify underlying factors stifling the delivery of housing assets. The identified factors were put together to form the conceptual framework. Questionnaires were developed and administered to both demand and delivery-side stakeholders of housing market, along with carrying out of interviews and document analyses. The study demonstrates significant correlations between real estate investment-led construction industry output stimulation and consumer-centric residential real estate asset delivery. The deterrents to consumer-centric housing delivery have been ascertained to be having an impact on time, cost and scope of housing projects. Significant correlations have been ascertained between these deterrents. On the demand-side, skills, awareness and engagement of consumers are strongly correlated with each other. Affordability of housing is rightfully correlated with all the three means of stimulation of construction industry output. Improvement frameworks for the delivery-side of housing market have been identified to be required to be developed to cover the interfaces of interaction between promoters/developers, judicial/quasijudicial bodies, urban local bodies and governments. Improvement frameworks for the demand-side of the housing market were ascertained to be required to be centered around the different phases of asset acquisition. Specific to the Indian context, the study presents and validates a novel conceptual framework aimed at stimulation of construction industry output through interventions in housing market, along with development of improvements frameworks catering to both demand and supply-side forces of housing market.