Tag Real Estate

Mumbai, 1st October 2024: The Indian residential real estate market has hit a historic milestone, with inventory overhang (the estimated time required to sell off unsold stock based on sales velocity) dropping to 22 months in the June quarter, down from 34 months in the corresponding quarter last year. This decline underscores robust demand across the sector. Notably, the inventory overhang varies significantly across regions, with Delhi-NCR recording the highest at 31 months and Kolkata the lowest at 16 months.

In its quarterly report titled ‘Real Insight Residential – April-June 2024’, the Gurugram-headquartered firm highlighted significant improvements in key regions, with NCR’s Gurugram witnessing a substantial decline in inventory overhang from 72 months in Q2 2023 to 31 months in Q2 2024. Ahmedabad also showed strong performance, reducing its inventory overhang from 33 months to 18 months during the same period, reflecting the healthy demand dynamics in these markets.

Regarding unsold inventory, the report noted that despite a moderation in supply and absorption rates, India’s residential real estate market displayed resilience, achieving a 2% year-on-year decline, bringing the total to over 9.26 lakh units as of June 30. This reduction underscores the market’s capacity to adapt to evolving conditions, maintaining overall stability and indicating sustained buyer interest across various regions.

Mr. Vikas Wadhawan, Group CFO -REA India & Business Head, PropTiger.com, said, “The significant reduction in inventory overhang to 22 months from 34 months year-on-year reflects strong and sustained demand in India’s residential real estate market. Cities like Gurugram and Ahmedabad have shown remarkable progress, with NCR – Gurugram overhang dropping from 72 months in Q2 2023 to 31 months in Q2 2024, and Ahmedabad’s from 33 months to 18 months over the same period. This trend, combined with a 2% annual decline in unsold inventory to around 9.26 lakh units, underscores the market’s resilience and effective adjustment to evolving conditions. As we approach the festive season, we anticipate this positive momentum will continue to gain strength, further boosting market activity and buyer engagement across the country.”

Inventory Overhang:

Inventory overhang across key Indian cities has shown notable improvement compared to the same period last year. Ahmedabad and Bangalore saw significant reductions, with Ahmedabad’s inventory overhang decreasing from 33 months to 18 months and Bangalore’s from 36 months to 18 months. Delhi-NCR experienced a substantial drop from 72 months to 31 months, while Kolkata achieved a remarkable reduction from 34 months to just 16 months.

On a pan-India level, the overall inventory overhang decreased to 22 months from 34 months, reflecting a healthier balance between supply and demand in the residential real estate market.

Unsold Inventory:

Ahmedabad led the way in reduction in unsold inventory with the highest reduction, cutting over 12,500 units, followed by the NCR region, which saw a decrease of over 9,400 units. These reductions reflect healthy demand and a positive market outlook in these key cities, indicating that the market is effectively absorbing the available stock.

The Mumbai Metropolitan Region (MMR) and Pune — the two most important real estate markets in Maharashtra — accounted for 54 per cent of the total unsold inventory across top 8 cities at the end of the latest June quarter. The MMR and Pune markets have comparatively high unsold stock because of an increase in the number of new launches by developers as a response to strong consumer demand. In MMR, the unsold housing stock rose 1 per cent to 3,39,362 units in April-June 2024 from 3,35,476 units in the corresponding period of the previous year.

16 August 2024: Nishka Choraria, 29, serves as the Vice President of Marketing at Crest Ventures, a prominent non-banking finance company (NBFC) with significant operations in real estate and financial services and investments. In her pivotal role, Nishka has been instrumental in shaping the company’s brand presence through her new and innovative marketing strategies and consumer-centric engagement initiatives. Her dynamic approach has not only elevated the Crest brand but also strengthened its market position.

Nishka’s leadership extends beyond marketing; she has been a driving force in the company’s corporate social responsibility (CSR) efforts. Her commitment to creating meaningful change is evident in the numerous impactful projects she has spearheaded, demonstrating that age is no barrier to making a substantial difference. Nishka’s blend of resilience and empathy has been crucial in fostering a culture of social responsibility within the organization, underscoring her belief that real change is achieved through persistent effort and a compassionate outlook.

In the realm of real estate, Nishka has significantly contributed to the success of numerous high-profile projects, including Phoenix Marketcity and Palladium in Chennai, One Crest, and Crest Greens in Raipur. Her industry knowledge and commitment to understanding specific markets have been critical in driving these projects to success. Nishka’s marketing strategies also highlight the environmental benefits of Crest Ventures’ developments, such as energy-efficient technologies and green building certifications, while also emphasizing the enhanced quality of life and long-term cost savings for residents.

One particularly noteworthy achievement is the recent launch of Crest Oaks, a landmark development in Marol that has set a new precedent for lush and luxurious living. Nishka has demonstrated that effective multi-faceted marketing goes beyond promoting properties; it involves creating and communicating a vision of a better lifestyle. Crest Oaks has not only met its sales targets but also attracted a discerning clientele that values community, wellness, and an upgraded quality of life, highlighting her belief in not just selling homes but creating communities where residents can flourish and thrive.

Nishka’s impact extends far beyond her professional achievements. Her commitment to social responsibility shines through her leadership in Empowering Villages Everywhere (EVE), an NGO she founded at the young age of 15. EVE’s mission is to uplift rural communities by providing essential resources and opportunities for growth. Under Nishka’s guidance, EVE has distributed over 500,000 solar lamps, study materials, and conducted numerous health camps, profoundly improving the lives of countless individuals.

Additionally, Nishka’s involvement with the Mumbai Center of Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS) underscores her dedication to social impact. BMVSS, India’s largest institution for fitting artificial limbs, has benefitted from her efforts to distribute prosthetic limbs across remote locations in India through the Mumbai Center. Nishka’s work has enabled thousands of disabled individuals to regain their independence and self-worth, significantly enhancing their quality of life.

Nishka seamlessly integrates real estate innovation with social impact, driving transformative change both within Crest Ventures and in the broader community. Her dual focus on advancing sustainable real estate solutions and implementing impactful CSR initiatives underscores her commitment to creating lasting, positive change across all facets of the business.

Reflecting on her journey, Nishka shares, “I am just trying to do my best. Our mission is to leverage effective storytelling to drive transformative change in both the real estate sector and our social impact initiatives. By crafting and communicating compelling narratives, I hope to reach a broader audience while deeply resonating with them, inspiring collective action and fostering a lasting, positive impact on society.”

By Deepak Mehta, Director of Mehta Group

14th August 2024: Mumbai is called the Financial Capital of India, but the two nearby cities, Thane and Kalyan, considered to be the distant suburbs of Mumbai, have undergone a remarkable transformation over the past decade. Thane has evolved as the most perfectly balanced metropolitan city in India, with its rapid industrial as well as infrastructural development. These two markets are becoming the new hub for home buyers and developers to invest. The ease of connectivity, job opportunities, the metro station, Highway Connectivity, and the Mumbai trans-harbor link have made Thane one of the most resilient markets in MMR.

On the other hand, Kalyan, the founding city of MMR, has been shortlisted to develop as a Smart City. The Mumbai Metro Line, Kalyan Ring Road, and the revamp plan of the railway junction have boomed the residential demand. With this tremendous growth, the Thane and Kalyan Market is known for its affordable, sustainable, and high-quality homes. These elements have shaped the market dynamics and attracted both developers and homebuyers to this burgeoning city.

Quality

Redevelopment Projects: Quality housing goes beyond the mere provision of shelter. It includes safe, durable, and energy-efficient structures that improve residents’ quality of life. Many old buildings in Thane and Kalyan are undergoing redevelopment to ensure the quality of well-being.

Premium Amenities: Thane has seen a surge in demand for lifestyle-oriented residential projects. Homebuying has become attractive for middle-income buyers as they get sophisticated living experiences and get to upgrade their living standards. Developers focus on innovative design, functional efficiency, and modern amenities tailored to all age groups. Apart from this, the developers have ensured to meet the safety standards making it a safer living for the home buyers.

Sustainability

Sustainability in housing involves designing and constructing homes that minimize environmental impact and maximize energy efficiency. All the new projects are evolving with sustainability for a better future with a healthy environment.

Eco-Friendly Housing Projects: There is a rising trend of incorporating green features such as rainwater harvesting systems, solar panels, and energy-efficient designs into real estate projects in Thane.

Sustainable Design in Commercial Real Estate: The commercial real estate market also emphasizes sustainability, with developers incorporating green technologies and sustainable design features in new buildings

Affordability in Housing

The sudden surge in demand due to affordable housing projects with world-class amenities has become a dream come true for home aspirants. Thane offers various budget-friendly homes that cater to middle-income families, making it a favorable option for first-time homebuyers. Developers are creating projects that provide affordable luxury, combining quality living with cost-effectiveness.

Government Initiatives and Policies: Various government policies, such as the cluster policy and TDR policy, alongside infrastructure development projects, have made it easier for developers to build affordable housing, thereby attracting more investment in the area.

Quality, sustainability, and affordability are interlinked components of a holistic approach to housing. Thane and Kalyan’s real estate market has prioritized these aspects, to create homes that not only provide shelter but also enhance the well-being of residents, reduce environmental impact, and ensure economic stability. With the real estate sector witnessing this positive shift, these two markets will continue to attract significant investments and maintain their upward trajectory in the coming years. It has underscored Thane and Kalyan’s potential as a real estate hotspot.

By – Akash Pharande, Managing Director – Pharande Spaces

The political atmosphere in India has a big impact on the property market, just like it does in other countries – especially during general election seasons. Election cycles have had a discernible impact on the real estate market over the last twelve years. What should end users and investors expect after the forthcoming general elections? Let’s examine the behavior of the Indian housing market before and after the general elections.

Trends Ahead of the Election

In the past, we have seen that the Indian real estate market tends to slow down in the run-up to general elections. This is because buyers and investors become cautious when there is uncertainty surrounding the results of elections and possible changes to policy. Pre-election data usually shows a trend of lower transaction volumes and reduced rate of property price rises.

For example, the market saw a notable decline in sales and new launches during the 2014 general elections. The top seven cities in India had an almost 30% drop in home sales in the quarters preceding the elections. Similar patterns were seen in 2019, with the primary and secondary markets slowing down as aspiring buyers and investors opted to wait and watch.

Recovery Following Election

The housing market usually rebounds markedly after elections. Clarity on government policy and restored consumer confidence are often the driving forces behind this rebound. Following the 2014 elections that resulted in the arrival of a stable government, there was a notable upturn in the market. Positive consumer sentiment and increased investment caused an almost 50% increase in sales in the following months, according to reports.

These patterns were repeated in the 2019 elections. Again, the reviving market momentum was supported by the guarantee of political stability. Another factor at play was that people now had confidence in the Real Estate (Regulation and Development) Act or RERA. By the end of 2019, new investments were flooding the market, not only in the residential space but also in commercial real estate.

Current Market & Future Outlook

This year, the housing market in India has remained resilient even in the period of uncertainty before the general elections. The current government has taken several measures to increase housing demand, infrastructure development, and economic reforms. A general confidence that this government will continue to remain in power has provided considerable protection from the typical pre-election downturn.

After the election, the Indian housing sector has every reason to remain upbeat. The market will definitely rise if the party in power can maintain the policy and safeguard economic stability. There are also industry expectations that the GST applicable on building supplies may be moderated with upcoming regulations. This would prove to be a big shot in the arm for both developers and their customers, as will help keep property price rises in check.

Apart from that, there are expectations that the availability of financing for the housing sector may improve and that affordable housing once again becomes a priority sector for the government. All this will certainly contribute to steadily improving housing market dynamics.

Implications for Investors

The post-election phase will deliver very attractive opportunities for both buyers and investors of residential real estate. Once the government announces more measures to boost the market and stabilize the economy further, real estate will rise and yield very significant returns due to price appreciation and increased demand. Such measures will dovetail very well with the growing trend of digitization and transparency in real estate transactions.

By –  Anupma Khetan Customer Experience Evangelist, Sunteck Realty on Mira Road’s Rise as a Premium Luxury Real Estate Destination.

Mira Road’s evolution into a prime location for premium luxury homebuyers showcases its advantageous position, serene atmosphere, and expanding infrastructure. Located in the Western Suburbs of the Mumbai Metropolitan Region (MMR), it stands out with its dynamic social amenities and seamless access to commercial centres, redefining residential luxury.

With a commendable literacy rate of 91%, governed by the Mira-Bhayandar Municipal Corporation, Mira Road is affectionately dubbed ‘The City of Gardens’. The area’s lush landscapes are dotted with nearly 6 lakh trees, alongside 65 gardens and 12 playgrounds, offering residents a verdant lifestyle rare in urban settings. This blend of greenery and urban convenience makes Mira Road a unique proposition for those desiring premium luxury in the lap of nature.

The real estate sector in Mira Road is experiencing a renaissance, buoyed by a robust demand for residential properties. The area’s ability to offer land parcels for greenfield developments, coupled with its strategic connectivity to business districts, has sparked a vibrant growth in the housing market. Mira Road’s real estate palette features a variety of properties, catering to the aspirations of a broad spectrum of buyers, including those seeking premium luxury at relatively competitive prices.

Infrastructure is one of Mira Road’s strongest suits, with exceptional connectivity provided by the Western suburban railway line and the Western & Eastern Express Highways. These transport arteries make it effortlessly accessible, bridging distances to Mumbai’s core and beyond. The locality’s rich social fabric is woven with upscale malls, top-tier healthcare facilities, and reputable educational institutions, further enhancing its attractiveness for premium living.

Adding to Mira Road’s allure are significant investments by the State Government of Maharashtra, earmarked at INR 943 Cr for infrastructural enhancements. The anticipation of metro rail expansions, the coastal road project, MMR Ring Road, and other infrastructural upgrades are poised to revolutionize connectivity, making Mira Road even more desirable by reducing commute times to major employment zones.

The key infrastructure developments in Mira Road are:

1. Metro Rail Projects: Enhancing connectivity with several lines, including Dahisar (E) to Mira Bhayandar, Gaimukh (Thane) to Shivaji Chowk (Mira Road), and a proposed line from Shivaji Chowk (Mira Road) to Virar.

2. Coastal Road: A significant freeway project aimed at improving the connectivity along Mumbai’s western coastline.

3. MMR Ring Road: Includes major connectivity projects like the Mumbai-Trans Harbour Link, Virar-Alibaug Multimodal Corridor, Vasai to Mira-Bhayander Bridge, and the Versova-Virar sea link.

4. Dahisar (W)-Bhayandar (W) Link Road: Planned to ease congestion and enhance connectivity.

5. Other Developments: Including Borivali-Thane tunnel road, a 4-lane Gorai-Mira Bhayandar Road, and the Goregaon-Mulund Link Road.

The local residential market shows a promising trend towards an equilibrium between demand and supply ratio of around 1 (ref ANAROCK report). This shift reflects a broader market evolution, indicating Mira Road’s growing reputation as a premium luxury residential hub. The upward trajectory in property values signals an opportune moment for investors and homebuyers to engage with the market, leveraging the area’s potential for substantial returns.

The strategic investments in infrastructure, coupled with a vibrant real estate market, underline Mira Road’s appeal as a smart choice for discerning investors and homebuyers alike.

Nayan Raheja of Raheja Developers
The inauguration of NCR’s most-awaited connectivity development, Dwarka Expressway, has been a prominent move for us as it has elevated the real estate market of the sectors along the stretch. The development has not only eased commute with the national capital but has also increased investment across projects from both residential and commercial segments. With tremendous price appreciation of properties ever since the construction of the stretch began, the Expressway has brought a boost to the region’s economy as well as its allure, with numerous amenities being developed along the route.

Amit Gupta, Director – Orris Group, stated, “Dwarka Expressway’s opening is a welcome move for Gurugram’s real estate, as the development has made a huge impact on the region’s growth among investors. The convenient access that it has brought to the prospective buyers of the region has increased the flow of both developers and buyers to Gurugram, with numerous sectors along the stretch benefitting from it. The stretch has also elevated connectivity to significant corridors, including the proposed Delhi-Jaipur Super Expressway, IGI Airport, and more, making it a location worth investing in.”

Rohit Mohan, Senior Vice President of BPTP Group said, “The Dwarka Expressway is poised to revolutionize the real estate industry by significantly reducing travel time between Delhi and Gurugram. As a result, property prices are on the rise, fueled by increasing demand for both residential and commercial properties. This presents a lucrative opportunity for investment, with Sector 37D emerging as a particularly promising location. Its strategic positioning along the bustling Dwarka Expressway makes it highly attractive to prospective buyers and investors alike. With improved connectivity and accessibility, coupled with the anticipation of future development projects, Sector 37D is witnessing a surge in interest. As the demand for properties in this area continues to soar, it offers the potential for substantial returns on investment. For individuals seeking to capitalize on the burgeoning real estate market in Gurugram, investing in Sector 37D presents a compelling opportunity for long-term growth and profitability.”

Mr. Sachin Gawri, Founder and CEO, RISE Infraventures
The opening of the Dwarka Expressway by our Hon’ble Prime Minister is one of the most-awaited developments for Gurugram’s real estate, as the expansion has significantly boosted the area’s appeal among investors. Gurugram has witnessed a surge in the number of developers and investors due to the easy access it has provided to potential buyers in the area, inviting investors to different sectors of Gurugram along the way. The section is worth investing in since it offers improved access to significant locations, including IGI Airport while promising a remarkable return on investment.

  By – Akash Pharande, Managing Director – Pharande Spaces

The Indian housing market is in continuous boom mode, with more people that ever aspiring for homeownership and developers vying for their attention. However, one thing that still tends to haunt many buyers’ minds is the lack of clarity when it comes to the prices of homes. While homes by good developers are selling at a fast clip, many buyers still feel that the prices are set arbitrarily.

Let’s explore how real estate developers arrive at the prices for their properties. For this, we first need to understand a concept and process called ‘price discovery’.

What is Price Discovery?

Price discovery is the process by which the market determines the value of a particular product. It applies to almost all products, including smart phones, costlier household items like air conditioners, refrigerators and television sets, and so on.

You have doubtlessly noticed that the prices of some of these items tends to fluctuate according to the demand for them, the state of the economy, time of year, and even the weather. Even gold items, where the price of the basic raw material is determined by its market value, also experience price hikes during the festive season.

But if the economy is in doldrums and disposable income is low, even gold items will sell at a discount because of lower demand.

In the context of real estate, price discovery determines the prices at which properties reasonably sell. In India, the process of price discovery for residential real estate is complex, as it involves several factors. One of the most important factors is the cost of land.

The Cost of Land

Land is a finite resource, and its availability is limited. The cost of land can vary widely depending on its location, the availability of basic infrastructure there, and what kinds of developments the area has already seen. For all intents and purposes, there is no such thing as basic cost of land – while there may be certain basic benchmarks, the prices of different plots even in the same area can vary widely.

Developers do influence the cost of land through development activities. Announcing new projects can increase land demand in nearby areas, especially if the development enhances the area with amenities and infrastructure. Less directly, the demand from developers for land in a certain area tends to drive up the price quoted by the landowners.

More influential developers, such as those who build massive townships and industrial projects, can also influence zoning and land use changes. This increases land value by enabling more profitable developments for other developers. Large-scale developments can bring about broader economic growth, which attracts businesses and residents, thereby increasing demand and therefore land costs.

In markets where some developers hold large land parcels, they control the supply, and this will also influence pricing. And, of course, government policies also play a key role.

But whether they are responsible for the current land prices or not, developers must factor in the cost of this finite resource when setting the price for their properties.

Construction Costs

Another important factor that influences the price of homes is construction costs. The amount of money a developer spends on construction materials, labour, and other expenses can vary widely depending on the city, location, nature of the project, and quality of the materials used.

The third factor will again vary depending on whether the project being developed falls into the luxury, mid-range, or affordable housing category. The cost of relevant labour hinges on its ready availability in the area.

If the project’s location is remote and the developer breaking completely new ground there, construction labour needs to be brought in from far off and be accommodated. In the case of high-density development areas, labour tends to be more readily available.

Demand

The third factor that affects the price of housing is the demand for it. This can vary significantly depending on the location of the project and whether the project addresses the actual requirements of the target clientele. For example, a luxury development in an area largely defined by low-cost housing is unlikely to see much organic demand.

Also, demand will depend on the developer’s brand value and the amenities offered in the project. Even with good brand backing, the right location and appropriateness of the project, a developer must set the ticket sizes of his homes reasonably so as not to be ‘priced out of the market’ – meaning that prices must be in line with similar projects by other developers in the area.

To summarize

Given the complexity of these factors, it is not surprising that the process of price discovery in the Indian housing sector can often seem arbitrary and opaque. Developers must consider multiple factors to set the price for their properties.

One common strategy used by many – but no means all – developers is to set a base price for their properties but be open to negotiate on it with individual buyers. There is usually more scope for negotiation in the case of projects which are not seeing much sales volumes.

Finally, developers often provide discounts or incentives to buyers who purchase earlier in the project’s development cycle. This encourages buyers to commit to purchasing homes before construction is complete, helping developers to improve cash flows and reduce their financial risk.

Each developer must consider the unique factors that affect the price of their properties and come up with a pricing strategy that is appropriate for that particular project. But conveying these various factors to every single customer is not feasible – finally, home buyers are interested in buying a home and not in the challenges that the developer faces.

It is also pertinent to note that the market also tends to be self-correcting. If developers set excessively high prices, the demand for their properties will be lower than they expected. On the other hand, if a developer sets the prices too low, he may miss out on a good profit margin.

But few home buyers today are willing to be patient to see if prices in a particular project will correct. In fact, most buyers are looking for ready-to-move homes precisely because they’re not willing to wait. This means that the developer must come up with the right pricing strategy right off the bat.

If you’ve found a good home option in the right location, in the right project by the right developer, and the price corresponds to your budget, it is safe to assume that the developer has done his homework and that ‘the price is right’.

Akash Pharande, Managing Director – Pharande Spaces

As India gears up for its upcoming general elections, optimism and anticipation are evident across various sectors, and the real estate market is no exception. Historically, India’s general elections have been a time for positivity – after all, every political party in the fray pledges to boost economic growth and improve infrastructure. These commitments invariably lead to a positive sentiment in the housing market.

How will the upcoming elections impact India’s housing market, and why this be the perfect time to make a home purchase? Let’s examine.

Surging Investment Optimism

Election periods in India are typically marked by increased public spending and promises of economic reforms, which tend to boost consumer confidence and spending. A stable government and the implementation of favourable policies create an environment ripe for investment – especially in the real estate sector. To capitalize on this optimism, developers often launch new projects or offer attractive deals and discounts to homebuyers.

Policy Reforms and Infrastructure Development

Today, election manifestos emphasize infrastructure development and pledges to usher in structural reforms. The result of such measures is enhanced connectivity and improved urban infrastructure, which directly benefit the housing market by making homeownership more accessible and appealing.

The development of roads, public transport, and utilities boosts the value of residential areas, turning even peripheral areas into attractive investment options. In short, they will see price growth.

Improved Liquidity and Financing Options

In the run-up to elections, there is typically an increased focus on financial inclusivity and easing of credit conditions to stimulate economic growth. Banks and financial institutions often roll out special home loan offers, reduced interest rates, or more favourable terms to encourage home buying.

This increased liquidity and the availability of financing options make it easier for aspiring homeowners to take the plunge.

Favourable Regulatory Changes

The government’s focus on housing and real estate development often leads to regulatory changes aimed at protecting buyers’ interests and boosting the sector’s growth. For example, the Real Estate (Regulation and Development) Act in 2016 was delivered by a new government elected in 2014, and it bought considerable transparency and accountability to the real estate sector.

Such policy reforms create a better environment for homebuyers and encourage investment in real estate. When such confidence-boosting reforms are implemented, we invariably see a rise in housing prices. Likewise, post-elections economic growth results in increased demand, which results in price growth.

However, in the period leading up to the elections, developers may often look to draw buyers with attractive prices, offers and discounts. This period can present a unique window of opportunity for investors and homebuyers to negotiate better deals before the anticipated post-election boom.

In short…

The period between now and the general elections is a strategic window for of opportunity to buy a home before prices rise. Moreover, the potential for property value appreciation post-elections signals significant returns on housing investment in the future.

Buying a home now, amidst the anticipatory positive trends, can not only secure a valuable asset but also leverage the market’s upward trajectory post-elections. Historically, the real estate market’s positive response to the general elections represents a strong connection between political milestones and economic growth.

New Delhi, 5th February 2024: The Real Estate Regulatory Authority (RERA) of Himachal Pradesh has conceptualized the time limit of sanctioned drawings for Real Estate Projects, for which the earlier time limit for constructing such projects was 3 years. Henceforth, the State Government holds that once drawings sanctioned for Real Estate in housing projects in the state are obtained, their renewal is not mandatory.

The above disclosure was made by the Chairman of RERA Himachal Pradesh, Dr. Shrikant Baldi, at the second day of the 16th Naredco National Convention, “Fostering Trust with Transparency; Pathway 2047,” held on Saturday. He added that the government of Himachal had already extended such a deadline from the earlier period of 3 years to 5 years some time back.

Given the tempo and enthusiasm with which the real estate sector has begun to grow at a rate of approximately 10 percent per annum in the recent past, the RERA of Himachal Pradesh approached its government and succeeded in persuading it to make the validity of once sanctioned drawings for real estate and housing projects an endless period of time, said Dr. Baldi.

Dr. Baldi, who is also the President of the All India forum of RERA, further informed that this was the demand of developers in general and other stakeholders, and the sustainability limit for sanctioned drawings was extended for a great deal of period for a win-win situation. The government of the state permitted its RERA to undertake the proposed move incorporating necessary changes in the state’s town planning statutes.

The Chairman also informed that the RERA of the state does not accept physical documents for registering any housing and real estate projects, nor does it entertain any requests for complaint lodging by any stakeholders in Real Estate. Instead, it entertains compliments and complaints online to ensure that transparency is strictly observed in every format through which real estate activities are permitted in the state.

According to him, the aforementioned steps are mooted at the All India level because real estate, in general, has started looking up from the level of 7 percent last year to that of 7.3 percent presently. Similarly, investors in this sector are upbeat given its growth, with bank credit showing an upward trend for the sector from 7.3 percent of the national GDP in the last year to that of 8.7 percent.

In his welcome remarks, President Naredco Mr. G Hari Babu pointed out that real estate and construction activities have to be given preferential treatment across the country because they contribute massively to the national GDP and national growth, with a particular focus on employment.

Mr. Babu, however, pointed out that approximately Rs 1 lakh 50 thousand Crores have been deposited with various governments by real estate developers throughout the country as labor cess. The objective of creating such a fund was to be utilized for the benefit of their labor and their wards, as each developer is required to contribute 1 percent of the project cost to the respective state government. However, the fund is hardly serving the stated objective, and the money is languishing. Therefore, steps are needed to utilize this fund.

In conversation with, Pankaj Narang, Founder & Director, Blitzkrieg Co.

In this insightful discussion, we delve into the core values shaping the company’s growth, its impactful contributions to community development, innovative marketing, adept handling of industry challenges, and the strategic foresight guiding its trajectory in the ever-evolving real estate landscape.

Can you provide insights into the founding principles of Blitzkrieg Co. and how they have guided the company’s growth and development over the years?

Values, transparency, and trust are the 3 core principles on which Blitzkrieg Co started. These core principles define us and guide us, transparency with our developer partners and customers a trusted relationship, and delivering values for both our developer partners and customers we have been very particular in timing up with developers who have the vision to deliver a quality product and similarly we help our customers to find their right home in our developer partner projects r association which developer is not a short term we are involved from concept to possession hand holding the developer and customer along the way. These principles have helped us to get the entire portfolio of our developer partners and drive 30% plus referral business.

In what ways has Blitzkrieg Co. contributed to the local community or urban development through its real estate projects?

We work with developers who are focused towards the development of community and improvement of micro-markets. However, the values that we bring into our undertakings are tangible and persistent. Like for instance, in Samarth Aura in Bhandup, the sales value we generated was huge. To ensure a good quality concrete road was established around the project (our developer partner made sure this), thereby creating a beneficial impact on our development and the general surrounding infrastructure as well.

Our resources recruiting policies encouraged to achieve their full potential has been a consistent action on our part. Our vision is clear: We grow when our team members grow. This is our collective desire and we must attain it.

Could you share an example of a real estate project where innovative marketing and sales strategies played a crucial role in achieving success?

As the world emerged from the pandemic, we took the opportunity to plan projects tailored to the changing lifestyles of our customers. Adapting to their evolving needs, we implemented the concept of ‘blissful living’ in one of our projects, Samarth Aura in Bhandup. The project features 60 amenities, and our marketing campaign highlighted ’60 Reasons for Blissful Living.’

In another project, our marketing strategy, ‘Rise Above the Ordinary,’ resonated well with the aspirations of the current middle class, proving successful in our Vikhroli project.

We also observed that while customers appreciate the projects, their financial understanding of home buying is still at an early stage in India. To address this, we created extensive and innovative financial offerings to assist customers in realizing their dream homes. These sales strategies have been instrumental in the success of all our projects.

Our sales approach follows a simple strategy, contributing to strong performance in the current market. From pre-sales to sales and post-sales, providing exceptional customer service has been the cornerstone of our strategy. This approach has not only helped us achieve impressive sales numbers but has also generated remarkable referral business, as customers appreciate our assistance in realizing their dream homes

Can you discuss any challenges or obstacles Blitzkrieg co. has encountered in the real estate market and how the company has overcome them?

The most significant challenge facing the real estate industry right now is acquiring the right resources for projects, which is crucial for project success. We have successfully overcome this challenge through our employee-friendly policies, placing people at the core of our business. By providing immense opportunities and assisting our employees in reaching their aspirations, we have seen individuals progress from starting as telecallers to becoming sales champions and closing managers. Our core principle is centered around employee-friendly policies, giving our team the space and trust to grow, and guiding them along the way, aligning with the core values we mentioned above.

What advice would you give to individuals or businesses looking to invest in real estate, considering the current market dynamics and trends?

Real Estate Hi Real Hai – real estate is a tangible asset that you can touch and feel. It has delivered amazing year-on-year returns, making it a continuously growing sector and a key driver for India’s journey to achieving its 5 trillion-dollar economy status.

For individuals or businesses looking to invest in real estate, here are a few crucial points to consider:

1. Due Diligence of Paperwork: With the advent of RERA, due diligence, including approvals and agreements, has become more streamlined. We also conduct our due diligence when partnering with developers.

2. Developer Legacy: Consider the developer’s past projects, delivery timelines, and the quality of construction. Investigate what existing customers say about them.

3. Micro Market Understanding: With evolving technology, one can analyze the transactions in a specific micro-market to make informed decisions about pricing for their dream home.

4. Engage a Reliable Broker: Find a good broker who can help you secure the right deal for your real estate investment.

Can you share your perspective on the importance of branding and brand identity in the real estate industry.

In real estate, having a strong brand and identity is like making a great first impression. It helps your business stand out, builds trust, and makes people remember you in a sea of options. Brand identity includes everything from your logo and colour scheme to the way you communicate and the values you emphasize. it’s about crafting a cohesive and appealing package that makes potential clients remember and choose you over others. In a competitive industry like real estate, a strong brand can be a game-changer, it’s about creating a consistent and positive image that sets you apart.

A positive brand has helped garner higher sale price in same micro market vis a vis competition, hence focussing on building brand should be taken very seriously by developers.

How does Blitzkrieg co. foster a culture of innovation and continuous improvement within the organization to stay competitive in the real estate market?

Blitzkrieg Co fosters innovation and continuous improvement by having sales and marketing advisors operate from project sites, gaining real insights from customer interactions. With a focus on being product-driven, the company emphasizes adapting to evolving needs and changing lifestyles. Flexibility is the key, demonstrated by the swift adoption of virtual tools during the pandemic. Continuous learning is a priority, as sales and marketing advisors stay agile, tech-savvy, and committed to ongoing improvement to remain relevant in the dynamic real estate industry. Every employee has the freedom to provide their inputs. These inputs are welcomed, assessed, and used to drive better business processes.

Looking ahead, what is the vision and long-term goal for Blitzkrieg co. in the evolving real estate landscape.

Our vision is to meet the short-term needs of developers, i.e., the sales of inventories, while concurrently working towards the long-term goal of creating a better brand for our developer partners committed to delivering quality products. We aim to be a one-stop solution for our developer partners and customers, all while staying rooted in our values.