Interview with Gautam Thapar, Director, Thapar Builders (P)
The current scenario of real estate market
Till now the real estate sector was dominated by a few players especially those with strong links with the Government. Many of them didn’t have technical background or knowledge of construction or management. Till now, the valuation systems didn’t really exist in terms of the cost of the land, the appreciation per year towards the cost of construction etc. So the seller would command the price and buyers, depending on their need had to agree. Now the sector is moving towards the organized pricing linked to the demand and supply rather than just to the builders demand.
Announcements like Smart Cities, RERA, Housing for All and GST will bring Indian real estate at par with the global cities. If you see, major cities like Delhi, Mumbai, Bangalore and Chennai, are where people wish to come for better opportunities and these cities don’t have the requisite infrastructure to cater. With the smart cities coming around these major cities, it will help in providing better infrastructure and more people would get better prospects.
Every sector or industry has a regulatory body, so it’s high time that the real estate sector should also have its regulatory body as provided in RERA. Similarly, Housing for all is a bold move by the Prime Minister considering that major chunk of the population is under poverty line and lives in unorganized sector. But to realize it, the real estate sector should get an industry status to avail cheaper loans, should be provided at lower rates and housing can be built through a PPP (Public-Private-Partnership) model. GST will help in bringing down the cost to the companies as lot of manpower is used in the accounts department and it’s also takes lot of time. Though, the effect of GST will be clear once the notifications and rulings are out.
The biggest challenge today is lack of trust among customers. The consumer is very unsure about the delivery of the project and the intention of the builder behind it. Now, with the new policies coming in, I am sure, things would change and market will move towards stabilization.
The distinct feature of the project Arthah
Arthah has been planned as smart residential project in Vaishali, Ghaziabad. It’s also the tallest tower of 103 meters. The project comprising 103m tower with three bedroom apartments of same size has been planned as an affordable luxury project. There are 84 residential units and 48 serviced apartments.
The serviced apartments will be only available on lease. Residential leasing is a new concept which we are starting with this project and in Delhi. The fully furnished apartments will be available on lease for the minimum of one year. Till now only through a broker one could lease a flat. With Arthah, the company will be the first developer to start residential leasing.