Interview with Mukund Patel – Managing Director of Rutu Group
Policy Changes to Usher Transparency and Stability in Realty Sector
In an exclusive interaction with Realty Plus, Mukund Patel – Managing Director of Rutu Group talks about the impact of policy changes on real estate business and how they are fairing in the post RERA era. Excerpts…
How was the performance of the Rutu Group amid the policy changes in the real estate sector?
Post demonetization – along with all the changes like GST & RERA – did impact the real estate market. For Rutu Group, it was a blessing in disguise as we adapted to these policy changes in a positive way which in fact has been a catalyst for good results for us. Also, I feel these changes will usher in transparency and stability. The future is poised to be brighter for the overall real estate industry.
Which regions are you more focused on for the business and why?
We are focusing more on the MMR region of the Thane-Kalyan Belt as it provides a much better translucence and attractiveness in terms of infrastructural development & affordability.
The government is stressing more on Affordable housing segment. What impact do you think the affordable housing scheme will have on the realty sector?
More and more developers will go for affordable scheme. Therefore, it will be easier for buyers to buy their dream home within their budget. Turnover will thus increase, which in turn will lead to more sales & demand. Therein, the vision of the government to provide affordable housing by 2020 will be fulfilled at the stipulated timeline resulting in the inclusive benefit of all concerned.
The demands of the real estate sector were not fulfilled in the Budget. According to you what more needs to be done by the government for this sector?
I think there should be more clarity given in the definition of affordable housing along with its practical usage in tax exemption. GST & Stamp Duty Reduction should be done for the affordable housing segment so as to make it more streamlined and ultimately realize its inherent potential for the common good.
How is the demand in luxury segment? What are the growth drivers for luxury segment?
Overall luxury segment is not doing as well due to lower demand. Tax benefits, GST & reduction in stamp duty can provide a boost to the luxury segment and drive growth for it.
What segment are you concentrating on more?
We are focusing more on affordable housing by providing an amalgamation of luxurious amenities and prudent value to our potential customers & buyers, in keeping with our motto of developing and nurturing a ‘A Complete Life.’
What are the expansion plans? Are you looking to explore new cities?
To develop townships with all prominent and desirous amenities as per our principle of timely delivery with quality & elegance. We are currently in the midst of exploring second tier cities and will be providing details as we make a final decision.