30 , December , 2023
"AFFORDABLE HOUSING WILL CONTINUE TO BE A PRIORITY"
Realty Dekho interacts exclusively with Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra to get insights about significant transformations in real estate sector, challenges in affordable housing segment, key trends in 2024 and NAREDCO’s initiative for overall sectoral growth. Here are the excerpts.
Realty Dekho (RD): With real estate sector undergoing significant transformations, what are the most prominent trends driving the industry forward, and how is NAREDCO actively responding to these changes?
Manju Yagnik (MN): In the ever-evolving real estate landscape, transformative trends shape the industry's trajectory. Sustainability is a cornerstone, with eco-friendly designs gaining prominence. NAREDCO, a stalwart in Mumbai's real estate scene, strategically aligns with this trend by integrating green practices into its developments. Technological advancements drive the sector forward, with NAREDCO embracing innovations like virtual reality tours and smart home solutions. Recognizing the growing preference for community-centric living, the company is steering towards mixed-use projects. NAREDCO's proactive stance involves policy advocacy and collaborative efforts, ensuring the industry remains agile amid these transformative changes.
RD: Affordable housing is definitely a critical aspect of India’s real estate landscape. What efforts are being taken by NAREDCO to address the affordable housing challenge and promote housing for all?
MN: Understanding the importance of affordable housing in India's real estate market, NAREDCO is aggressively addressing the issue under the direction of the vice chairman of the Nahar Group. The organization is driving advocacy for policy reforms to create a conducive environment for affordable housing projects. Working with government agencies, NAREDCO plays a key role in creating creative financing schemes that increase homeownership accessibility. His group prioritizes cost-effective and sustainable construction methods, ensuring quality and affordability. NAREDCO is dedicated to promoting inclusive urban planning and developing communities that serve a range of income levels. With these coordinated initiatives, NAREDCO is advancing housing for everybody with significant progress.
RD: Over the last one year, developers’ average cost of construction has risen 10-12%. Don’t you think that the end-customer will feel the pinch of rising cost?
MN: The real estate industry has had to contend with a 10-12% increase in developers' average construction costs over the last year. There is little doubt that this growing tendency raises questions about how it will affect the final consumer. The increased expenses present a possible problem impacting buyer affordability and home values. However, it highlights the necessity for creative approaches within the sector to balance affordability and quality. Developers, especially those connected to Nahar Group, must tread carefully in this terrain, looking for sustainable practices and affordable solutions to lessen the impact on the final user and strike a healthy balance between affordability and growing expenses.
RD: With most of the investors vamoosing from the real estate market, what kind of demand shift do you anticipate in near future?
MN: There is a noticeable change in investor mood due to the dynamic nature of the real estate market. The withdrawal of investors causes a shift in the dynamics of demand. We anticipate a subtle change and a rise in end-user demand. Sincere buyers are looking for homes for their use rather than as investments are expected to dominate the market as investors get out. This change might encourage a spike in the demand for reasonably priced homes, forcing developers to reevaluate their plans. Furthermore, there may be an increased emphasis on technologically advanced and environmentally friendly developments, which would align with the discriminating homeowner's changing tastes. Our dedication to providing value to our consumers and adjusting to these changing market conditions remains strong.
RD: For sectoral growth, real estate investment, both domestic and foreign, certainly holds the key. What measures have NAREDCO taken to facilitate investment, provide a conducive investment climate, and attract foreign investors to India’s real estate market?
MN: In fostering sectoral growth, NAREDCO has undertaken strategic initiatives to enhance the investment climate in India's real estate market. Collaborating with stakeholders, the organization advocates for policy reforms and regulatory measures to streamline processes and boost investor confidence. NAREDCO is pivotal in engaging with the government to address industry concerns, promote transparency, and ensure a conducive environment. NAREDCO actively promotes India's real estate potential to attract foreign investors through conferences, roadshows, and international forums. The organization continually works towards creating a robust ecosystem, combining regulatory support and promotional efforts to stimulate domestic and foreign real estate investment in the country.
RD: Do you think the developers should consolidate their foothold in key micro markets? If yes, what kind of measures should be undertaken by them and how do you plan to extend your support in this regard?
MN: Consolidating a foothold in key micro markets is imperative for developers in optimizing growth. Strategic measures involve meticulous market research, identifying high-potential micro markets, and customizing offerings to local demands. Developers should focus on building sustainable, community-centric projects, enhancing infrastructure, and adhering to regulatory compliances. Collaboration with local authorities for streamlined approvals and infrastructural development is crucial. At Nahar Group, our commitment extends to supporting such endeavors by aligning our projects with the specific needs of the micro market, ensuring sustainable development, and actively participating in local initiatives for community welfare and infrastructure enhancement.
RD: Can you please enumerate key trends that will take center stage in real estate sector in 2024?
MN: In 2024, pivotal trends will shape the real estate sector. Sustainable development will dominate, with a surge in eco-friendly and energy-efficient projects. Technology integration, such as smart home features, virtual property tours, and blockchain transactions, will redefine industry standards. Emphasis on wellness-centric designs, reflecting the post-pandemic paradigm, will be prominent. Affordable housing will continue to be a priority, spurred by government incentives. Co-living and flexible spaces to accommodate evolving work-from-home dynamics will gain momentum. Furthermore, data-driven decision-making and a heightened focus on community-centric developments will be instrumental in meeting the evolving preferences of homebuyers.