Notwithstanding problems over land acquisition and project delays, real estate in NCR has gained pace. Fast improving infrastructure, better connectivity and new developments not only attract end-users but also enhance the investment value in this market. Supertech CMD RK Arora discusses market performance and his expectation from 2013. Excerpts from his interview with The Pioneer Reporter Priyanka Dua
How has been the demand and supply within Delhi NCRIJ What kind of properties have seen demandIJ
There is no problem as far as demand is concerned. We have seen good demand in Noida, Greater Noida and in Yamuna Expressway. luxury segment has received good response which is expected to keep enticing consumers in the coming time.
Which are some of the growth corridors witnessing maximum activityIJ
Growth corridors depend upon the infrastructure development. In terms of region we have seen growth in Noida, Greater Noida and in Yamuna Expressway like Metro, expressway, power station, and other infrastructure activities. Government is also paying attention in these areas and in terms of segments luxury has witnessed active participation.
High interest rates, inflation and slowdown are affecting real estate business. So, how you are coping up with thisIJ
It is a fact that continuous increase in prices of raw materials have affected the cost of construction, which has made things difficult for the builders. As majority of India consists of middle class and lower income group, mid segment and affordable housing is the need of the hour. We always believe in serving as per the current demand of the market.
To deliver mass housing projects in time, we have introduced new technologies such as precast, which helps in lowering down the cost of construction and saving up to 64 per cent time of the total work as well.
Why developers are moving towards smaller cities like Sonipat, Bhiwadi and BahadurgarhIJ
Smaller cities are no longer treated as small cities now. In terms of infrastructure and connectivity these small cities have made remarkable development and very well connected to the neighbouring important cities. There is a huge potential in these cities as now people want to have world class quality living experience. Also, the land costs in comparison to the metros city are lower in these cities. So, it is a win–win situation for both developers and the people of these cities.
How has been the sale in the last fiscalIJ
Sale was not so good because of high interest rates and lack of fund, but this year we are expecting good sales. Interest rates are going down and other benefits we are expecting from the Government to regulate this industry. If it all happen, definitely it will help us.
What are the major infrastructure bottlenecks in the real estate sectorIJ
Frequent fluctuation of major input prices for these industries like cement, steel etc have also contributed to hitches in the growth momentum of this sector. It has been estimated that for the last few years this industry is growing at more than 30 per cent per annum. Yet, it is surprising that this sector has not been accorded industry status and approval related bottlenecks like for one project we require fifty NOCs fifty approvals from different department and it takes more than one and half year so this is directly impacting the cost of fund and affordability of the project.
What is your forecast for the sectorIJ
There is a huge demand in the real estate in India. Still, we are short of more than thirty million houses majorly into the affordable sector so the Government needs to create more policies on affordable housing. The year ahead will also see some technological advancement in the industry, which will further boost the construction process and help change India’s skyline in the future. The ideas that will be the result of closely observing the market and consumers expectations will further decide the future of the industry in year ahead.