B&E: Though on the surface it seems that the real estate market has left the worst of the economic downturn behind, many reports suggest that the sector is still reeling! What’s the reality?
Vijay Kumar Jindal (VKJ) : The Indian real estate market has seen a sharp improvement in the past few years. In today’s unstable financial scenario, real estate has emerged as the safest investment option for the long term when other industries continue to struggle with the downturn. As property prices continue to rise, investing in real estate is one of the smartest choices that one can make. No doubt, like other industries, real estate also has been facing a few difficulties but they can be overcome. Homes will be always be in demand, be it from the new or old users. Rented families are shifting to new homes and old buyers are shifting to big apartments, villas and penthouses.
B&E: Reports suggest that there has been a 13 % fall in home sales in Delhi-NCR in April-June. That means the sector is yet to emerge from the ongoing sluggish business environment.
VKJ: Ups and downs in sales are part of the industry and we have seen sudden changes in the mood of buyers and investors. First quarter results have always shown a slow market. But sales momentum starts picking up from August. It is very difficult to predict but past trends have shown that figures improve over the course of a year.
B&E: But isn’t it true that major property markets have been witnessing a stagnation in recent months and builders are facing a build-up of inventory?
Stagnation is just a matter of discussion. Otherwise the NCR region has never faced such a phase. Developers are offering special schemes, pre-launch services and easy payment options to attract buyers. Many new projects are coming in residential, retail & commercial categories across India. Apart from Delhi/NCR, Mumbai, Bangalore, Kolkata, Ahemdabad, etc., are areas with the maximum potential and can offer good returns to private and institutional investors.
B&E: What are the sector’s expectations from the government?
VKJ: Of course, we are expecting that the government will ease down the process of allotment and approvals. We have been asking for a single window system, which can significantly reduce costs and time frames for projects. Any step that brings down taxes, cost of raw material and machinery will help us as well as our customers.
