The scale of public housing is much larger than luxury housing, says Mr Aman Nagar, Director, Paras Buildtech
Paras Group is operating in residential, retail and commercial. They have six residential projects (Paras Panorama, Paras Tierra and Paras Seasons, Paras Irene, Paras Dew's and Paras Quartier); one retail project (Paras Downtown Square mall, Zirakpur, Punjab) and four commercial projects (Paras Twin Towers and Paras Downtown Centre, Paras Trade Centre and Paras Trinity in Gurgaon).
They are currently doing projects in NCR – Noida & Gurgaon and have already delivered projects in Gurgaon, Zirakpur and Mohali (Punjab). Poised as one of the most iconic names in real estate, Paras Buildtech India Pvt. Ltd. or simply ‘Paras Buildtech’ is set to revolutionize the Indian infrastructural market with its inherent future-focused nature.
Makaan IQ team got an opportunity to chat with Mr Aman Nagar, Director, Paras Buildtech.
1. What is your medium term (9-12 months) outlook for the real estate market in India in general and North India in particular?
The Indian real estate market has been stagnant from quite some time due to prevailing economic slowdown and pending policy decisions, but after the new and stable government has taken the helm at centre, the economy has started showing signs of recovery. Going forward in the next 9 to 12 months, it is expected that the real estate market too, along with other sectors of economy will definitely bounce back and resume high growth trajectory as earlier. As far as North Indian real estate market is concerned, we are seeing positive signs and it will be in green zone few months down the line.
2. How is real estate in North India different from rest of the regions in the country?
The real estate market in various parts of India is representative of diversity of our country. As far as North Indian real estate market is concerned, it is so diversified that one can find a property fit to every pocket and taste. Northern real estate market has a variety of offerings from affordable to mid-range to luxury.
3. What is your opinion on Luxury or Public Housing? As a developer, which is more sustainable?
The scale of public housing is much larger than luxury housing. The former is for masses and represent need, while the later is about taste and class. As a developer, we find both sustainable. Our bouquet of projects has both kinds of projects. The margins, off course, are higher in luxury housing than public housing.
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?
Delhi NCR itself is a very big region where one can explore different locations for investment purposes depending on the targeted investment tenure. Other than this reason, Punjab, particularly Zirakpur, has been on the radar of property buyers and still has potential for growth. The parts of Western and Southern India too are doing well.
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?
See, property prices are market driven and with the kind of competition the developers face, it does not leave any space at all for increase in property prices beyond necessary. The piling of inventory was direct outcome of continuous high inflation rate over the last couple of years which drenched out savings in the hand of common people. The saving rate dropped from as high as 36 per cent in 2008 to about 30 per cent last year. That speaks for itself why inventory piling up happened. With ample sign of turnaround of economy, it will gradually come down to comfortable level of 24 months.
6. What policies you look forward to from the Government and RBI that will be a relief to home buyers across India?
The government should immediately come up with its final decision on various pending legislations for policy improvement such as single window clearance, among others to prevent regulatory delays in approvals to project which is the prime reason behind soaring property prices in India. Once activated, this mechanism will provide a huge relief to the home buyers as well as the developers. Second, RBI has ample room for bringing down policy rate (incidentally they cut the repo rate by 25 basis points today) rates to 3-4 per cent which is currently at 7.5 per cent after latest cut. This will translate into effective interest rate on home loan reduced to 8 per cent.
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?
With the relaxed FDI norms in commercial sector and REITs system in place, the commercial real estate market is here to take a giant leap forward. Off course, currently there is a huge gap in supply vis-à-vis the demand for quality commercial development. Offering personalized business spaces is the new buzzword in the commercial markets and the developers are busy in making most out of this opportunity in the regions like Dwarka Expressway and Golf course extension road in Delhi NCR, Wadala, Chembur, Ulwe in Mumbai, and Ravet and Hinjewadi in Pune etc. Alll these destinations are the corporate bases of the future in the country.
8. What can the home buyer’s expect from Paras Buildtech over next 1-2 years?
In next two years, we are likely to complete handover of at least three projects – Paras Tierea and Paras Seasons at Noida Expressway and Paras Irene in Gurgaon. On growth front, after registering our strong presence in Delhi/NCR region, we are in the process of expanding our footprints across new and emerging growth corridors in the tier-II and III cities of the county. We will be launching a slew of state-of-the-art residential and commercial projects in these cities. We are already present in Zirakpur, Punjab and in the upcoming 1-2 years, we would be expending ourselves heavily in the key real estate markets of the country, but our focus will remain intact over developing only quality real estate projects and that too on affordable price for our valued customers.