“I don’t believe that the buildings have to be very high and luxurious but they need to have their own lifestyle and give a quality of life”, says, Manju Yagnik – Vice Chairperson, Nahar Group. She shares with Buildotech, her views on the industry trends and the need of having a global lifestyle for the occupants.
The current real-estate scenario in terms of investors and buyers sentiments
It is a mixed situation. Fluctuating currency (Rupee) has put a feeling of fear and uncertainty in the investors’ mind. The main challenges faced by investors this year have been uncertainties in the government policies, issues related to the easy access to funds and liquidity crunch. In such scenario, where there is a dearth of capital or limited avenues to raise funds, a growing trend is witnessed where the investors are looking at joint partnerships to develop the projects, which takes care of capital requirements, reduces the risk involved and helps in quicker development of larger residential projects. The government has begun the process of initiating a number of favorable industry policies like relaxed FDI rules, proposed development plan 2034, State Regulatory bill, Smart Cities, GST etc., which have the potential to improve the market sentiments and propel growth of the realty sector in India.
Correction in real-estate industry
We haven’t experienced a proper market correction yet. The industry is going through a tough time for a long time. Sales are slow for months now, not just our projects but across the country. Some developers are lowering their prices because of their poor fund situations, also the banks are not very supportive in financing and private funding is very expensive. For these reasons few developers are offering price cuts, reduction in interest rates to attract customers. But, I would say the industry would see stability and improvements in the days to come.
How has the real estate regulatory bill impacted developer’s fraternity?
The bill has the potential to improve the market sentiments and propel growth of the realty sector in India. Subject to implementation, it will make home buying an easier process by bringing in maximum transparency in the sector. The developers are mandated to fully disclose all the information like project layout, approval, land status, contractors, schedule and completion of project with the customers. Single-window clearances for projects, digitisation of records and grading of developers will equip home buyers with information which will help their decision making. Well established players get a wider platform to operate, with more clarity. Banks and financial institutions will also not hesitate in advancing loans once industry status is achieved.