The prospects looks brighter for real estate in 2015 for India and more on South India: Says Mr R G Anil, Executive Director, Concorde Group
Riding on the growth wave of real-estate, Concorde group made a strategic shift into constructions of villas and apartments; offering great quality of living spaces at extremely competitive prices. Concorde achieves customer delight by offering unmatched living experience through continued quality consciousness, which is steeped in every aspect and stage of the construction cycle, right from project conception, through execution and delivery.It is a professionally managed group with proven capabilities; it has developed close to 15 million square feet of land into residential layouts and 3 million square feet construction projects. Concorde currently has 2.6 million square feet or 900 crores worth of projects, due for completion in the next three years.
Makaan IQ team got an opportunity to chat with Mr R G Anil, Executive Director, Concorde Group, who is always enthusiastic and is always on a constant learning curve. He is responsible for many of the changes within the Group. Lets see what he has to say::
1. What is your medium term (9-12 months) outlook for the real estate market in India in general and South India in particular?
As long as the industrial growth of India is stable and continual, India will be hotspot for realty. The passing of real estate bill and the lowering of repo rates by government has shed new light on boom of the industry. More and more investors are needed by the country to boost the industry and maintain a steady growth. 2015 is expected to be a year of big potential and growth. Especially a growing demand for tier 2& 3 cities reveal that South India is going to be the real hero on the realty market. Now that the metros are all filled and are overflowing, places like Mysore, Devanahalli, Guntur, thiruvanathapuram, Hubbali, Coimbatore, Mangalore and Old Mahabalipuram Road etc are facing a demand surge. The prospects look bright and better for real estate in 2014 than 2015 for India and more on South India.
2. How is real estate in South India different from rest of the regions in the country?
South India stands as much affordable for real estate compared to spots like Mumbai and Delhi. The attitude of people is also different and the rate of growth in the industry is much faster than North or West India. The development of smart city in Kochi, the demand for investors in Andhra Pradesh followed by the bifurcation and the expense factor has converted South India to a haven for property ownership. The climate of Bangalore is much preferred and even the security in these cities are quoted way better than their North Indian counterparts. All the factors make South India a desirable space to live and thrive.
3. What is your opinion on Luxury or Public Housing? As a developer, which is more sustainable?
Over the years, the rise in luxury house demands has dwindled and now, people are more comfortable with public housing. About 60% of the populations are looking for regular amenities and are not lured by luxury. In the long run, more sustainable business will be public housing. One should have blend of both luxury and Public Housing. Visualizing from the Social perspective Public housing is necessary. However, to sustain and grow in the market luxury housing is the key.
4. Having so many projects completed in South region and if you can specify the cities, 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 Bangalore. What could be the reason behind this? Just the soaring property prices or any other factor attributing to it?
Unlike other cities, Bangalore is not flooded with cries for residential space as much as it is, with space for office and commercial purposes. Number of foreign organizations that come down and industries like IT, Pharma are booming in the city, creating a real crisis for tech parks and offices than sheltering the migrants. This trend has led to many unsold properties in Bangalore in residential industry.
6. What policies you look forward to from the Government and RBI that will be a relief to home buyers across India?
The government has lowered the repo rates and this will create the best time for people to invest in real estate at a high profit level. The new policies have made it beneficial not only to investor but also to the end user. Home buyers sought more reduction in the interest rates.
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?
Tier 2 cities and smaller properties are gaining demand than metro spaces and big plots. Heritage cities and smart cities are the driving in more desires for real estate industry. 2015 will see an unexpected growth in the industry with all the fresh fads. Projecting the growth of IT and pharma, real estate has been meeting the demands for the corporate sector. For the next 3 years Bangalore can witness sustainable and stabilized growth.Upcoming corporate basis - North Bangalore, Pune and Tier 2 cities.
8. What can the home buyer’s expect from Concorde Group over next 1-2 years?
Company is expanding its reach, 6 new launches in all verticals across Bangalore in luxury and affordable. Concorde Group has been bullish and are reaching other markets in India