India

L&T and Tata Realty lead India's shift towards prefab and precast construction

Synopsis

India's real estate and construction sector is evolving with Larsen & Toubro and Tata Realty & Infrastructure spearheading the adoption of advanced building methods, particularly prefabrication and precast technology. Despite challenges like design limitations and high logistics costs, clients favour prefab construction for its speed and efficiency. Government initiatives like 'Housing for All' utilize precast technology for residential units. While only a small percentage of the over USD 100-billion real estate market in India currently employs prefab methods, the sector is gaining traction, especially with an evolving homebuyer perception. Challenges, including initial investments and the demand for skilled labour, persist, but experts believe experience will overcome these hurdles, fostering widespread prefab acceptance.

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The real estate and construction industry in India is changing with the adoption of advanced building methods, particularly prefabrication and precast technology. Key players like Larsen & Toubro and Tata Realty & Infrastructure are leading this transformation, focusing on quicker, more efficient and sustainable construction processes. However, experts note that certain challenges, including design limitations, high logistic costs and potential damages during transit, need to be addressed for widespread acceptance of prefab technology.



M V Satish, the whole-time director and senior executive vice president at L&T, mentions that clients are embracing prefab construction due to its faster pace and timely project delivery. The shortage of skilled labour further supports this shift towards offsite modular construction methods. L&T has demonstrated the effectiveness of integrated hybrid modular construction technology by completing a seven-storey flight control system integration facility for the Defence Research and Development Organisation (DRDO) in just 45 days. Additionally, the company delivered 96 precast apartments for the City and Industrial Development Corporation of Maharashtra (Cidco) in 96 days.



Tata Realty & Infrastructure has also been a pioneer in using 2D and 3D precast technology in residential projects over a decade ago. However, Harleen Oberoi, senior vice president at Tata Realty & Infrastructure, acknowledges that despite gradual acceptance, there is industry-wide hesitancy to invest in modular approaches.



Vipul Gupta from JLL India notes that some government projects, like 'Housing for All' under the Pradhan Mantri Awas Yojana, are utilizing precast technology for residential housing units. While there is an increasing trend in commercial buildings and infrastructure projects adopting precast systems for faster construction, only a small percentage (1-2%) of the over USD 100-billion real estate market in India currently comprises prefabricated buildings.



According to Gupta, the perception of homebuyers in India is evolving regarding properties constructed using prefabrication methods, as people become more aware of the benefits and advancements in prefab technology. Oberoi emphasizes the need to bridge the information gap and dispel misconceptions, highlighting the importance of educating homebuyers about the advantages, including cost savings and faster construction timelines.



The future of prefabrication in the Indian real estate sector appears promising, especially with the government's focus on affordable housing and sustainable development. This aligns well with the benefits offered by prefab technology, such as reduced construction time, minimized waste, enhanced quality control, and improved environmental sustainability.



Despite the rise in adoption, challenges like the initial investment in facilities and the demand for skilled labour persist. However, experts believe that these challenges will diminish as the industry gains more experience with prefab technology. Homebuyers are expected to play a crucial role in driving the widespread acceptance of prefabrication across the country, recognizing the advantages of this modern construction approach.

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