Real estate faces scalability test, KPMG finds solutions

The real estate sector has been one that writes the Indian growth story. Though the general consensus says the growth in this sector will continue to be robust due to inherent demand, a recent KPMG report indicates businesses are reeling under pressure.

A recent KPMG report highlights that the ability to manage scalability and leverage opportunities is the only differentiating factor between new conglomerates entering the sector and the existing ones that are driving towards sustainable growth. The sector sees pressure in managing internal and external stakeholder expectations while balancing the growth imperatives. Developers are now posed with challenges of paucity of land, increased governance requirements and severe shortage of development capacity. These challenges have been compounded by inflationary pressures and rising finance costs, the report underlines. Apart from external factors the report suggests that the root causes is in the capability gaps. The report highlights few key pointers to assess capability gaps and potential scalability hurdles, some of them include: