The single biggest challenge on the demand side is the issue of affordability - Says Mr Rohit Gera, MD, Gera Developments
Gera Developments, are creators of premium residential projects in Pune. They are one of the pioneers of the real estate business, top players in Pune. The best part is that they are a full-service organization with In-house architects, engineers and construction crew. They also have an In-house interior design division that helps design homes as per customer tastes and preferences. Makaan.com editorial team had a chat with Mr Rohit Gera, MD, Gera Developments.
1. What is your medium term (9-12 months) outlook for the real estate market in India in general and West India in particular?
I believe we will see an increasing momentum towards more sales over the next 9 to 12 months. Outstanding inventory will start getting consumed. Strong corporate earnings for this current year should lead to greater salary hikes and this will translate into greater demand for the real estate sector
2. Please tell us about your new projects that you launched?
We have had several project launches in the last 12 months in both the residential as well as commercial segments. Our most recent launch was of Gera’s Imperium Grand. The 4th project in the iconic Imperium series of commercial spaces in Panjim. It is an Intelliplex with smart features like Building Management Systems, optimized lighting etc. thus enhancing efficiency and productivity. Gera’s Imperium Grand has received approvals from the NGPDA as well as the construction license from the CCP and is slated to for ground breaking post the monsoon that is September 2014. The land for the project was acquired from Parsvnath Developers. Prior to that we had 2 consecutive launches in Pune & Bangalore respectively in the residential segments. Gera’s Song of Joy in Pune and Joy on the Banks in Bangalore are part of our innovative concept of Child Centric Homes.
We have also launched Gera’s Isle Royale in Pune which is a blend of super luxury villas and high rise apartment’s nestled in greens with the entire area surrounded by forests on 3 sides. Gera’s Imperium Green which was launched in October last year, is Goa’s first commercial property that is powered by Greentelligence and utilizes numerous green parameters of an eco-friendly building. Imperium Green is a commercial complex with 58 Shop/Office spaces that are environmentally sustainable and responsible and focus on the business needs of its occupants. Its avant-garde elevation is slated to become talk of the town.
3. What is your opinion on Luxury or Public Housing? As a developer, which is more sustainable?
In the Indian context there is demand for housing at airport ends of the pricing spectrum. At the luxury end of the spectrum the demand on the brand, quality, and aesthetics is extremely high whereas at the affordable end of the spectrum efficiency of execution plays an extremely important role.
4. Having so many projects completed in Pune and Bangalore, which of the other cities do you think home buyers should opt for a property purely from Investment purpose?
Buying a home is very different as compared to buying shares in the stock market. Homes are a far less liquid investment and are subject to local level issues including property tax, common area maintenance etc. Further even within a city, different submarkets perform differently depending on a number of factors. It is therefore important for people who wish to invest purely for the sake of investment to put their money into a region which they are familiar with.
5. The number of unsold inventory is increasing, what could be the reason behind this? Just the soaring property prices or any other factor attributing to it?
The supply-side of real estate development is a slow long cycle. The demand-side on the other hand can come to a standstill pretty quickly. As a result sometimes when demand slows down the industry does not have the ability to reduce the supply as fast and this leads to an inventory overhang. Increasing property prices affect the individuals purchasing capacity and this too leads to the reduction in demand from home buyers.
6. What policies you look forward to from the Government and RBI that will be a relief to home buyers across India?
The single biggest challenge on the demand side is the issue of affordability which can be addressed to either reduction in interest rates for homebuyers on an increased deduction for interest payments from the taxable income for homebuyers.On the supply-side faster approvals and greater impetus on the road and transport infrastructure will help boost the supply and this too will make homes more affordable for homebuyers.
7. What can the buyer’s expect from Gera Developments over next 1-2 years?
We have a number of projects on the drawing board currently some of these include developments in Pune as well as Goa and Bangalore in the child centric as well is in the commercial space. Residential real estate development has been our main stay product line and we continue to focus on this going forward.