ON A ROLL!

Barring current market sentiments on the back of global economic adversities, Indian economic dynamics seem to be strong and resilient in the long run. The recently released real estate performance survey by a leading firm also indicates that the real estate sector is slowly getting back on track. While the road to recovery might be a bit subdued, the sector is sure to offer a boost to the India’s GDP armed with technological enablement and new age innovations. Prefab construction is here to stay, with innovative offerings and the limitless promise that it holds in transforming the real estate landscape.  

Consultancy firm CIRIL recently said in a report that the Indian real estate (RE) market is poised to touch Rs. 65,000 crore by 2024 and by 2025, this sector is expected to contribute to 13% of the country’s GDP. In 2019, the size of the RE market was Rs 12,000 crore, according to the report. Despite the fear of multiple waves of Covid-19 pandemic, the real estate market has been looking bullish with the accelerated demand across all categories, the report added.

Regarding commercial RE, the report mentions that offices with enhanced technology driven ecosystems in the workplace will be in demand and developers are investing in technology and digital channels to reach out to the consumers. Co-working space has emerged as a sustainable business model for corporates who want to remain flexible on cost components in the face of a possible resurgence of COVID caseloads.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflow stood at US$547.2 billion between April 2000 and June 2021, indicating that the government’s efforts to improve ease of doing business and relaxing FDI norms have yielded results. Foreign portfolio investment (FPI) has been one of the largest drivers of India’s financial markets, while institutional investors are expected to continue investing in the Indian RE with more fundsd.

India’s retail industry is projected to grow at a slower pace of 9% during the period 2021 to 2030 and is likely to touch US$1400 billion by 2026. CIRIL said that Indians are taking to online retail in a big way, and by 2024, the country’s e-commerce industry is likely to touch US$111 billion, driven by mobile shopping. The warehousing RE sector will continue to grow with e-commerce gaining traction, and the transactions in this sector are projected to grow at a CAGR of 20% in FY 2023. The e-commerce part in the total warehousing transactions will increase to 36% in FY 2023.

Such promising avenues have only accentuated the opportunities that prefab construction holds. With its inherent advantages that promise no time and cost overruns, prefab construction is fast gaining a stronghold in the Indian real estate market. This research has further escalated its growing popularity and that comes along with several benefits for all the stakeholders. By capturing the market sentiments and envisioning to transform the prefab landscape, Steelion not only creates innovative prefab products but is also introducing technology enabled industry ecosystem that helps to harness the benefits of design led manufacturing and project implementation, benefiting all stakeholders including clients, building end users, partners, workers, and its investors.

In fact, another research pointed out that there is a dearth of Grade A warehouses and logistics parks in India with 64% skew towards grade B warehouses. It is more pronounced in South India with not a single Grade A logistics park in Kerala. This is one area where Steelion has been currently focusing on. Post pandemic, there has also been an increase in demand for co-working spaces, elderly homes and commercial office spaces. Floor extensions for hospitals and educational institutions are also in demand. At Steelion, its resources, technology and expertise are geared towards meeting the increasing demand for commercial offices, hospitals, factories, luxury apartments, logistics parks, educational institutions, or any other critical construction projects.

Keeping the business model asset-light, Steelion’s internal resources are focused on core engineering activities such as design, project management, manufacturing of critical components while they leverage external resources like manufacturers, installers, and channel partners for non-core activities. With HCT, Steelion brings innovative solutions, which results in building standout projects for the benefit of the clients, especially considering their long-term investment returns. Steelion believes its clients’ time is money and hence it doesn’t waste time in superficial, laborious, time-consuming business decisions. The company’s end-to-end service ensures Efficient Coordination, Zero Blame Game and Zero Time & Cost Overruns. As a turnkey building solution provider, Steelion offers end-to-end solutions to its clients on the back of the specialized design, fabrication, erection, procurement, and project management teams.

By introducing and adapting to newer technologies and innovation in prefab, it is just a matter of time before Steelion becomes synonymous with the concept of “Manufactured Building” in India.