11 , May , 2022
BY: REALTY DEKHO NEWS DESK
There is no denial to the fact that the real estate sector was drastically impacted by the pandemic, but better days are expected in times to come. Amid growing importance of home ownership among buyers and investors, it is anticipated that the demand for residential real estate would be high in the coming year. In fact, sales numbers were higher in Q1 2022 as compared to Q1 2021. Similarly on the supply front also, there was an YoY growth of 50%. Not only this, after a prolonged period of muted growth, rates of apartments in India’s mega cities have also started to show more intense growth. Therefore, to analyse the realty market, Realty Dekho Team, in a quick interactive session, interacts with the industry veteran, Dr. Ananta S. Rahuvanshi, Founder President Elect, NAREDCO MAHI to know about demand revival scenario, scope of negotiation post lockdown, demand shift anticipated, initiatives for consolidation in key micro markets and other vital details. Excerpts.
Realty Dekho (RD): In terms of affordability, real estate is at all-time high, but Covid has certainly impacted the demand pattern. What kind of demand revival do you anticipate with denouement of Covid?
Ananta S. Raghuvanshi (ASR): Demand for residential apartments, plots, villas and floors is high. In fact, upgrades to ready to move in properties is a trend that was witnessed. Moreover, desire to have a secondary holiday home especially due to work from home culture has certainly opened new avenues.
RD: In a post Covid scenario, do you think ROI of real estate scores over other investment options?
ASR: Yes, of course. Long term and mid-term realty is a great investment opportunity. However, short term expectations must be realistic in new growth and infra development corridors only.
RD: How much is the scope for Negotiation post Lockdown?
ASR: In my opinion, Category A developers give good quality products and will not negotiate as stocks are limited too. Hence, the scope of negotiation post lockdown is minimal.
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?
ASR: Not at all. This was predicted and expected. Loans are still reasonable and so are payment terms. So, the end-customers are aware and prepared and therefore they will not feel the pinch of the minor rise in the cost.
RD: With most of the investors vamoosing from the real estate market, what kind of demand shift do you anticipate in near future?
ASR: If we talk about the demand shift, I will say that plots and properties with ease of tenancy are in demand for this segment.
RD: Going forwards and anticipating the market scenario in near future, in which segments do you think the developers will plan to launch their upcoming projects? Will it be affordable, mid-luxury or luxury?
ASR: The developers have identified their target audience and it’s a result of location and expertise too. So, it’s not just one specific category that will do well, rather all the categories will do well.
RD: Do you think, the developers should consolidate their foothold in key micro markets? If yes, what kind of initiatives are should be undertaken?
ASR: To answer this, I would sum up this in one-liner that each developer must work on their own strategy and strengths. There is no cookie-cutter model in Realty.