Interview with Aneri D Patel –Director, GHCL
Ganesh Housing Corporation Limited (GHCL) has a strong presence in and around Ahmedabad and specializes in the residential sector, with a focus on the mid and higher income segment of the market. Aneri D Patel –Director, GHCL gave a lowdown on the Gujarat real-estate.
Gujarat is the hub of economic development with major industries such as textiles, chemicals, diamonds and automobiles. Surge of these industries has brought in significant end-user demand for the realty sector. Demonetization as well as the expectation of major reforms in the Union Budget 2017 had put consumers in a wait and watch mode however, the market is now in steady recovery phase. While the Gujarat market is showing signs of stability, realty markets of other major cities are stagnant and there is also some level of price correction in those markets. Nevertheless, affordable housing development is taking place on a promising note even in other major cities.
The biggest challenge specific to Gujarat real estate is unaccounted transaction on properties. Players have largely been unorganized and therefore gearing up for compliance towards RERA and GST will be a big challengefor such organizations. There is no proven track record of acceptance of premium and luxury properties and a defined trend for the demand of such developments has not yet been observed.
The potential of Smart city development across Gujarat is undeniable. The realty market is likely to see a major boost as a result of this development and the future for consumers as a result of such developments looks promising.
The potential of Gujarat realty market
The Gujarat realty market is stable at the moment and even though there is an overflow of inventory, prices are stable and major infrastructure developments such as GIFT CITY and the Mumbai Delhi Industrial Corridor are likely to bring about the much-needed boost to the market in terms of end user demand. Moreover, developers are enthused after the promising Union Budget was declared. The vision of developers not only in Gujarat but nationally is aligned with that of the government to provide Housing for all by 2020. The Confederation of Real Estate Developers of India recently signed 347 Memorandum of Associations for the development of Affordable Housing projects all over the country, out of which 127 are to be developed in Gujarat.