Indian real estate market is in a constant state of flux
Realty+ in conversation with Alakshendra Singh, Head, Corporate Communications.
What are the reasons for the NCR real estate market seeing such gradually increasing traction?
Various Government incentives to both developers and homebuyers are pushing supply as well as demand within the segment. Government extended benefit of Credit Link Subsidy Scheme (CLSS) on home loans for the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana (Urban) till the end of March 2020 with a subsidy of up to ₹ 2.67 lakh on home loans is an uptick in affordable housing sector both from supply and demand side.
Also going forward with the current market status, commercial real estate especially ‘Grade A’ office properties is definitely the best-performing real estate asset class. The incumbent government’s proactive initiatives such as Make in India and the thriving start-up culture in the country demand and absorption for well-located office properties has been exceptionally high with rental yield is consider as one of the major factor for increasing traction in Delhi NCR market.
The areas in Delhi NCR that are witnessing maximum sales and why?
The Delhi-NCR market witnessed cautious and strategic new launches under the watchful eye of the Real Estate (Regulation and Development) Act, 2016. Greater Noida and Gurugram followed by Ghaziabad emerged as NCR’s better performing markets. Extension of Noida Metro has seen a tremendous demand for affordable housing segment. As expected, ready-to-move or are nearing completion garnered more enquiries from buyers. Buyers were not confident to invest in or risk buying an under-construction project.
How will the sops offered by the government in the Budget further help the market to gain momentum in the near future?
The government’s pre-election bonanza for residential real estate seems to have worked well, resulting in over increase in sales an upswing in new launches. We are also seeing that buyer interest is back in the market. Especially the reduction in GST from 12 per cent (with input tax credit) to five per cent (without ITC) for premium homes is attracting a lot of people and at the same time government is also contemplating various measures to boost the housing sector in the budget, seeing this as a quick way of providing an impetus to the slowing economy and creating more jobs.
Are developers realigning themselves to tap into newer business opportunities?
Currently, developers are now leaving stone unturned to adopt more structured approach of growth. Right from the cash flow management to project planning and scheduling to the final execution, the changes are being made to align with the RERA realities. Definitely it is going to take some time before these changes are noticed in the collective awareness of the buyers in the market.
What are the marketing strategies being adopted by your company and the current growth
Indian real estate market is in a constant state of flux, and a project that appeared feasible earlier may no longer have the same business logic at a later point. We at Eros Group mainly focus on making sure that customers who had bought apartments in our projects get their homes within a reasonable time. With the help of technology and social media in customer relationship management and at the same effective use of the data base to help find out various prospects and re-target them is the key.
Considering the scale of changes that have been introduced in the realty sector, the industry has been extremely resilient. Eros Group is extremely focused on completing their on-going projects. This is more so in states where RERA has been implemented in letter and spirit. If this trend continues we will see consumer confidence return and we will use this to recapitalise it accordingly.
The future expansion plans of the company
We are planning to invest ₹125 crore to develop a new housing project at Greater Noida in Uttar Pradesh and will develop 258 units in the new project called ‘Eros Sampoornam I’. The project will be adjacent to the company’s existing project Eros Sampoornam wherein 1,800 flats have been delivered.
Spreading over 12 acres, the phase will incorporate four towers with 258 two and three BHK units ranging between 835 sq ft and 1560 sq ft. Currently, only four towers have been opened for booking with a completion deadline of December 2023 under UPRERA.