Affordable housing will witness a good demand, says, Mr Mohit Goel, CEO, Omaxe
Omaxe, one of the leading real estate developers in India, is focused on developing world-class residential and commercial properties. Having spread its footprints in nine States across 30 cities in India, the company has already delivered more than 90 million sq. ft. and is currently executing 42 real estate projects - 16 Integrated Townships, 2 Hi-Tech Townships, 14 Group Housing projects, 10 Shopping Malls & Commercial Complexes and Hotels.
The man behind all the success of Omaxe has all the genes of an entrepreneur. He is able, young and aggressive. He is a stickler for routine and meticulous in his work. Mr. Mohit Goel, the dynamic and suave Chief Executive Officer (CEO) has made huge systemic changes in Omaxe since the time he took over the comnpany. The challenges were immense and opportunities were huge. But with all this came the responsibility of steering the company to even greater heights than his father Mr. Rohtas Goel - the inspirational first generation entrepreneur.
Makaan.com team had a one-on-one chat with Mr Mohit Goel on the company's future plans.
1. What is your medium term (9-12 months) outlook for the real estate market in India in general and North India in particular?
A host of factors will shape real estate sector and the overall economy in the next 9-12 months subject to inflation and interest rate. The Government’s intent to promote realty and infrastructure growth has been duly emphasized in the Budget. The RBI’s directive on affordable housing, too, is a positive move and a welcome sign for better prospects ahead. These factors will find concurrence even in the North Indian market. However, cities like Bahadurgarh, Rohtak and Vrindavan are low priced and therefore the take off quicker.
2. How is real estate in North India different from rest of the regions in the country?
North Indian market is mostly end-user driven. Besides, there are many regions that are high density and lowly priced yet fulfilling in every aspect of infrastructure – both social and physical.
3. What is your opinion on Luxury or Public Housing? As a developer, which is more sustainable?
Increasing rate of High Net worth Individuals (HNIs), rapid urbanization and spurt in NRI/PIO community has accelerated demand for luxury housing. Rise in demand for luxury housing is mainly guided by location of the project and the facilities on offer. The trend in luxury housing is witnessing an upward trajectory. The upper-middle class is beginning to graduate to luxury living in Western-styled homes with ultra-modern facilities. This demand is not only restricted to metros but also Tier II cities like Ludhiana, New Chandigarh, Lucknow etc.
Public /affordable housing will witness a good demand going forward with new measures of Government and RBI. Public/affordable is more sustainable for us. We deal in volumes and are market leaders in regions we operate in. Even if margins are low quick take offs lead to healthy top lines.
4. Having so many projects completed in Delhi NCR, which of the other cities do you think home buyers should opt for a property purely from Investment purpose?
5. The number of unsold inventory is increasing in NCR, what could be the reason behind this? Just the soaring property prices or any other factor attributing to it?
Soaring prices and rising interest rate have made buyers apprehensive. Last few years have seen not much rise in income levels on account of elevated inflation.
6. What policies you look forward to from the Government and RBI that will be a relief to home buyers across India?
Faster implementation of Budget proposals, RBI directive on affordable housing are the ones needed in short run to spur demand. In the medium-to-long run, measures like region specific online approvals in time bound manner; infrastructure status, tax rationalization etc are required.
7. What is the current trend in the Commercial Real Estate Market? How are developers meeting the increasing demand of the corporate sector? Which are the upcoming corporate bases?
Commercial Real estate continues to remain sluggish but REIT could be the game changer going forward. Developers have been conceptualizing various innovative ways to make the commercial space viable for retailers and corporate; these include entertainment zones. Besides NCR, pockets like Lucknow, Bahadurgarh, New Chandigarh have shown good demand.
8. What can the home buyer’s expect from Omaxe Group over next 1-2 years?
In the next 1-2 years, the company is expected to launch 10-12 projects, most of which shall be in the affordable segment. While existing projects will continue to witness new value additions in projects in terms of newer facilities and amenities.