2021 An Encouraging Year for Real Estate
CN Govindaraju, Managing Director, Vaishnavi Group How is the year 2021 looking for real estate and its various asset classes? The April-June quarter will see a lot more launches. The current trend is favouring completed projects and the current inventory in that category is under good consumption. With the vaccine roll out commencing, the certainty and market sentiments are improving. This will translate into a surge in sales in the last two quarters of 2020-21. On the commercial front, the improving sentiments will have more people working from the office again. I anticipate that September 2021 onwards we will see good upward commercial trend. De-densification by companies will become the norm, leading to a net positive increase in office space requirements. What are some of the realty sector’s issues that need immediate government attention? The government should start addressing the cartelisation of the cement and steel companies. These materials have a direct bearing on the cost of construction and thereby the cost of the finished project. It can be detrimental to the real estate sector if left unaddressed. The government should look at a reduction in levies/taxes until the end of FY 2021-22 to support and revive the industry from the pandemic slow down. Make money available on both fronts - customers and builders/developers. Reducing the rate of interest in home loans on the customer front can boost the industry. Making money available to good developers at reduced interest rates. Aid a speedy bounce back through a waiver in the registration fee waiver for FY 2021-22. What are the major changes Indian real estate will see in the coming years? Firstly, I anticipate that the industry will see a large scale consolidation thereby restricting the industry to a few good builders that deliver quality products on time. Secondly, the construction industry will have to start embracing new technologies like precast that assures timely delivery and exceptional quality. Most importantly, the industry will take up a transparent customer-centric approach to build the confidence levels of the customers to make substantial sales at the project commencement stage as well. What are your expectations from the upcoming budget? I strongly believe that the government will support businesses across industries and sizes that have been impacted adversely by the pandemic. I anticipate that the budget would bring to the forefront the need of economic recovery and achieve this by way of going soft in the imposition of new levies/taxes. What are the growth strategies planned for the company for the near future? Vaishnavi Group has partnered with Katerra that specializes in off-site precast technology, to develop residential and commercial projects of scale. Vaishnavi Serene, India’s first residential project of scale built using off-site precast technology is gearing towards completion thereby offering greater construction quality and delivery way ahead of schedule. We will be scaling up drastically on our tech-driven and sustainable approach towards construction in the coming years. A state-of-the-art integrated development of 2.2 million is in the works in the buzzing corridor of North Bangalore. We are also foraying into plotted developments, offering plots in comfortable and affordable sizes paired with amenities that stand beyond the ordinary. This year will mark our entry into the warehousing sector. Our growth strategy is built on a strong foundation of building from the heart and that will be scaled up to all asset classes of real estate -residential, commercial and beyond!
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