Interview with Ashok Chhajer, Chairman, Arihant Superstructures Ltd

In a conversation with Shubham Singh, Arihant Superstructures Ltd.’s Chairman & Managing Director, Ashok Chhajer speaks about the changing scenario of real estate market. In the current scenario of real estate reforms, what do you think are the challenges for the affordable housing segment? For new projects to come up, land prices needs to be corrected. It would embark the affordable housing to take place in a fast pace. RERA has given confidence to the buyers and a platform where they can have their own say. It has been very positive to the buyers for projects which are still under construction. How has GST affected the realty industry? From developers’ perspective, there has been no additional cost as the input credit has already been granted. However, from the buyers’ perspective, the further cost is not added. Sentimentally, GST has created an impact in the minds of buyers whereas in reality, in terms of pricing, it is not. In the upcoming budget, there would be a reduction in prices and that would instill more confidence in the buyers’ mind. Recently, there was a change in carpet area of the affordable housing sector. How will it help developers and buyers? The carpet area has been increased on different parameters from two tier cities to three tier cities.  For metropolitan cities, 60 sq.mtr is also a decent area for 2BHK flats. But for other cities, it has to be increased. The government of Maharashtra’s expenditure is happening in Navi Mumbai for Rs 1 crore and above. The employment generation has also increased in this area because of NAINA. Adjoining NAINA, it would be the hottest property destinations in the next two decades. What is new sales strategy of the developers post RERA? The market forces already have made projects with the current rates. With the reduction in prices, it is visible that sales had strengthened.