With the changing preferences of buyers, there is an increase in luxury housing in Country: Says Mr Prashant Mirkar, GM Marketing, House of Hiranandani
House of Hiranandani, a big name in India which believes in modern cityscapes. They claim to change the way living spaces are designed with a well-acclaimed, fresh perspective to grand living, and transformed the ethos and aesthetics of real estate in India and which is so true. Apart from residences, they have established numerous schools, colleges, institutions and hospitals through affiliates, trusts, clubhouses and community spaces. Their efforts have earned an unmatched, international repute associated as the country’s finest developers. The real estate projects undertaken by the firm over the years across Mumbai, Bengaluru, Chennai and Hyderabad visibly blend aesthetic beauty with practicality and sustenance. Makaan IQ team got an opportunity to have a conversation about current real estate scenario with Mr Prashant Mirkar, General Manager-Marketing, House of Hiranandani. 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?
The formation of a stable government at the centre that has a clear vision and mission had a positive impact on the sector in 2014-15. There were several breakthroughs like incentives for infrastructure financing by the Reserve Bank of India (RBI), lowering of interest rates on home loans, unveiling of the ‘Make-in-India’ campaign, framework for Real Estate Investment Trust (REITs) and the latest entry to the list which is the relaxation of FDI norms in the construction sector that augmented well for real estate. So, the scenario looks bright for the current year as well. At the same time, the future of the industry as a whole will depend on faster implementation of the projects, adherence to delivery schedules, for which faster approvals will have to be granted to the developers.
2. How is real estate in South India different from rest of the regions in the country?
Until recently, the South Indian real estate industry was known to be highly price sensitive. However, with the number of MNCs setting up their base here increasing significantly, there has been exponential job creation for the local population which in turn has led to the rapid economic development of South India. The effect is clearly visible on the real estate market as well. The key growth drivers here has been the growth in IT / ITES sector, some of them also have a rapidly strengthening industrial base which is further augmenting real estate demand.
3. What is your opinion on Luxury or Public Housing? As a developer, which is more sustainable?
With the changing preferences of consumers, there is undoubtedly an increase in the demand for luxury housing in this country. For instance, consumers look for technology that can accommodate their taste and provide convenience and comfort. The trend of smart homes is slowly but surely gaining popularity in India.
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?
The development of cities in South India can be attributed to several factors like the growth in the IT industry, setting up of offices by foreign companies etc. I feel, Chennai, Bangalore and Hyderabad remain among the best cities for property investment. I would also like to highlight that the unsold inventories remained the lowest in Bangalore, when compared to other cities, thus giving an indication of the investors inclination here. We will witness an impressive increase in job creation in South India owing to the expanding industrial base here that will lead to demand in residential units .
5. The number of unsold inventory is increasing in cities like Bangalore, Chennai, Hyderabad etc, what could be the reason behind this? Just the soaring property prices or any other factor attributing to it?
As per industry reports, the South India cities were least effected in terms of slow sales. The sales have been sluggish due to factors like high property prices, lower economic sentiment etc. However, there is a different story to the luxury housing market which is being viewed as one of the most vibrant and dynamic segment in Bangalore.
According to some report, Bengaluru city in 2014 witnessed the launch of around 35 luxury residential projects offering around 6,000 units, as compared with 18 projects offering a total of 4,200 units in 2013. These luxury homes are priced between Rs 10,000 per sq ft to 36,000 per sq ft depending on the location.
6. What policies you look forward to from the Government and RBI that will be a relief to home buyers across India?
We expect the Government to address issues which are imperative to the growth of the real estate industry. The industry needs a boost that could propel and push construction activity, fast track approval process which is one of the prime reasons for rising property prices.