Tag: Ashok Gupta

Business, News

Sale of plots picking up pace, likely to breach 2020 mark sooner

Jul 26, 2021 by Rekha Nair 0 Comments #Ajnara India Ltd., #Ashok Gupta, #CMD, #Deputy MD, #Dhiraj Jain, #Director, #Executive Director, #Mahagun Group., #MRG World, #Prateek Mittal, #Sushma Group, #Vikas Garg

According to insider reports, the number of plots sold since 2019 has been declining; however, this year, the progress has been good and plots’ sale is likely to breach the 2020 figures at the end of the second half of 2021. Realty experts say that the in 2020 the sale of plots came down to 50% compared to 2019, but post pandemic the situation has improved with people coming out invest in plots from end-user perspective as well as investors.

“The market is booming, and based on the flow of people, it’s worth noting that having a plot near a financial centre can help you earn a good return. Although prices are now low, they are expected to rise as the economy recovers from a major setback caused by the COVID issue. The flow of people towards places with the best health facilities and work possibilities will increase, and these metros will become goldmines for those who have purchased plots,” says Prateek Mittal, Executive Director, Sushma Group.

Realtors feel that the increased sale of plots attests that post-pandemic people have started looking for independent pieces of land where they can spend a healthy and secure life. The plots launched by reputed developers are the first choice as they add credibility and promise a better lifestyle in gated communities. Throwing light on the trend of plotted developments, Dhiraj Jain, Director, Mahagun Group, says “Many reputable developers are now active in plotted development projects across the country, and demand has always been strong. Builder-planned communities provide the infrastructure needed to begin living and offer a good return on a patient long-term investment.”

Real estate brokers say that more than 11,000 units were launched in the first half of 2021 in top cities compared to around 16,000 in 2020. Maximum units were launched in Chennai, Bengaluru, and Hyderabad; the Delhi NCR market witnessed the launch of more than 600 units in the first half compared to around 1100 in 2019. “Plotted development investment is a time-honoured tradition in India, and COVID-19 has bolstered demand for plotted development as a long-term investment. Buyers are looking for developments like this in gated communities to expand on and utilise as separate residences. Plotted developments by well-known developers are constantly in demand, and they promise a solid return on investment. The value proposition, however, is dependent on the geography and infrastructure,” adds Ashok Gupta, CMD, Ajnara India Ltd.

Buyers have long been torn between living in an apartment or on separate floors; the dilemma is deciding between having your patio and sharing utilities with others. “However, having a yard in a metropolis is a pipe dream due to land scarcity and high prices. As a result, developers are launching a slew of plotted development projects in Metro’s outskirts; these projects prove to be rather popular, especially in the post-pandemic age, when people crave more space. Authorities plots are always safe; if a private developer is launching a planned development project, one should always choose reputable developers,” says Vikas Garg, Deputy MD, MRG World.

Business, News

Realty market remain stable in Noida

Jun 28, 2021 by Rekha Nair 0 Comments #Ajnara India Ltd., #Ashok Gupta, #CEO, #CMD, #Dhiraj Jain, #Director, #Mahagun Group., #MD, #Migsun Group, #Sunworld Group, #Vijay Verma, #Yash Miglani

The market in Noida has been doing extremely well since Unlock 1.0, and it picked up pace in January-March 2021. However, the second wave brought a halt in activities for a shorter duration but the sales figures are encouraging as there is an increase in sales compared to the same period last year.

“The good thing is that the second wave has further cemented the people’s resolution to look for real estate assets. People are now seeking long-term financial security in real estate, which bodes well for the sales season. We expect that the real estate sector will pick up in two or three weeks from where it left after the first wave effects,” says Yash Miglani, MD, Migsun Group.

According to real estate experts, Greater Noida West, Sector 150, and Sector 43 in Noida, both near the commercial hub of Sector 137, remained popular for 2 BHK and 3 BHK flats. One of the key drivers in Greater Noida West was the availability of home units priced between Rs 35 and Rs 50 lakh. In Noida’s Sector 150 and 43, direct connection to the projected Jewar Airport and projects by well-known builders are seen as demand stimulators.

“Noida’s well-developed road network allows for speedier commuting, resulting in increased interest in the real estate market. Many homes will appreciate by 10% to 15% depending on their location and demand in that area. Once the Jewar airport is operational, the Yamuna Expressway will be a more popular destination than Noida,” says Ashok Gupta, CMD, Ajnara India Ltd.

The residential market in Noida and Greater Noida is continuing to grow. According to the realtors, Residential sales grew QoQ as a result of low home loan interest rates, new housing supply, and people’s persistent desire to purchase a home. Dhiraj Jain, Director, Mahagun Group, says, “Because nothing is more important than one’s well-being, and people are more aware of this than ever before, there is a tendency toward migrating to larger spaces. Noida’s prosperity is due to the image it has developed among the middle class. In the following months, we expect a tremendous response in the residential market since the momentum is unlikely to wane.”

The upcoming infrastructural developments are expected to stimulate the real estate market even further. Multi-level parking lots in Sector 3 and Sector 16A Filmcity, Shaheed Bhagat Singh Park, Biodiversity Park, a shooting range, and an indoor stadium in Sector 21A are among the infrastructure projects set to be completed this year. Then work on underpasses is underway on the combat front in various Noida sectors to improve traffic flow. The projects aim to improve inhabitants’ living conditions, which will directly influence the real estate market.

Buyers are increasingly lured to plots along the Noida-Greater Noida Expressway and the Yamuna Expressway, with the latter gaining traction due to the planned Film City and Furniture Park. The price of residential plots along the Yamuna Expressway has jumped by 10-15%. Vijay Verma, CEO, Sunworld Group says, “The regions are popular among end-users, particularly among the working class, and sales have been fantastic. Infrastructural upgrades, such as metro, road connectivity, and announcements like Jewar Airport, are also supporting the development.”

News

Mid-segment ruled 2020, will continue the run in 2021

Jan 4, 2021 by Rekha Nair 0 Comments #Ajnara India, #Ashok Gupta, #CEO, #CMD, #Director (Branding and construction), #GBP Group, #Mohit Goel, #Omaxe Ltd., #Raman Gupta, #says, #TDI Infratech Ltd, #Vice President of Sales & Leasing (commercial), #Vimal Monga

Unlike expectations, 2020 turned out to be a fair year for the real estate sector as it negated the highly detrimental predictions. In the end, the year witnessed a sale of around Rs 90,000 crore in the first three quarters in seven major cities as against around Rs 1,50,000 crore in the same period in 2019. The maximum sale was achieved in the mid-segment as the price range below Rs 70 lakh was in maximum demand during the year. The ease-out in home loan interest rates triggered the much-needed revival, which is expected to improve further in the coming year.

Though the year saw a decline in sales by almost 40-45% compared to the previous year, it has to be seen in light of the economic crisis arising from the global pandemic. Mohit Goel, CEO, Omaxe Ltd., says, “The overhang of subdued demand from last quarter of 2019 continued into 2020, and with the COVID-19 pandemic induced lockdown in March, the sector went from bad to worse. The migration of labours and disruption in the supply of raw materials saw a stoppage in construction activities. On the back of government stimulus and RBI’s liquidity measures, there was some uptick in demand post the partial opening of the economy.”

Nevertheless, the positives that have emerged from the COVID-19 crisis will form the cornerstone of the coming decades of growth in the real estate sector and overall Indian economy, Goel adds. Talking about the year ahead, he says, “The increased investment in infrastructure development by governments and businesses in developing tier 2/3 cities as centres of economic activity along with increased consumer spending and activity will write the story of growth, employment and opportunities in the coming decades in India.”

Majorly driven by the mid-segment, major cities’ housing sales value saw a significant jump over pre-COVID-19 levels. Chennai saw almost 3.5 times jump in Q3 2020, NCR recording a jump of more than 150%, Hyderabad went up by 152%, MMR witnessed an increase of 145% over the previous quarter, Pune saw 125% increase, Kolkata witnessed 121% jump, and Bangalore saw an increase of 81%. Throwing light on 2020, Ankit Kansal, Co-Founder & MD, 360 Realtors, says, “As the Black Swain event spread like wildfire, markets started staggering, with a drastic slowdown in sales. The industry showed some limited manoeuvring with embracing the digital medium. The repo rate cuts and liquidity infusion by the government were also helpful as it reduced home loan rates. The developer fraternity also introduced attractive payment plans to arrest any steep decline in sentiments. Once the lockdown was suspended, markets started reviving, despite a slowdown in business activities weighing on the overall economy. Finally, in the last quarter, the previous year’s growth numbers were restored, and the industry reached near normalcy. The euphoria that started with the festive season should lead up to year-end, clocking a 75-85% quarterly growth in sales.”

Though starting with challenging times, 2020 is ending with many positives for the real estate sector. This is the year when home loan interest rates got reduced to a 15-year low, and steps were announced to help stuck projects and liquidity issues, says Vimal Monga, Vice President of Sales & Leasing (commercial), TDI Infratech Ltd, adding that “The year also witnessed the movement of people towards tier II and III cities, thereby increasing the scope of real estate far and wide. The coming year will see an increasing demand owing to the people’s likeness for gated communities post-COVID-19. In 2021, we will also see interest in well-planned commercial developments as the requirement of malls and office spaces will go up.”

Saying that the reverse migration among the working professionals from metros and NRI’s lead to increase in demand of property in Tier II and tier III cities, Raman Gupta, Director (Branding and construction), GBP Group, adds, “When it comes to analyzing the northern region, Tricity and its peripheries witnessed an upsurge laying the foundation for a market that is going to grow exponentially from here. The year 2021 promises favourable returns, as people’s lifestyle will change drastically after overcoming the pandemic effects. Residential spaces that promise holistic living, unique amenities, an ideal location would become the epitome of an ideal home. We will be witnessing a wave of tech-based innovations, apart from the construction technologies which will be evolving the traditional sector of real estate further.”

Drawing conclusion from the renewed interest of buyers in 2020, Ashok Gupta, CMD, Ajnara India, says, “The buyers in NCR are likely to see more number of housing units hitting the market in 2021. Around 6 lakh units were launched in the region from 2013 to 2020, and only 30 per cent have been completed till now. With the focus of developers in NCR on project delivery, many mid-segment units will be up for grab. The market in 2021 definitely looks promising as the measures taken by the Government to boost buyer sentiment will start showing result starting from Q1 2021.”

Business World

Realty sector’s hopes are high from RBI’s MPC

Dec 3, 2020 by Neel Achary 0 Comments #Amit Jain, #Ashok Gupta, #CMD Ajnara India, #Director, #Mahagun Group., #MD Migsun Group, #RBI’s Monetary Policy Meeting, #Yash Miglani

As the RBI’s Monetary Policy Meeting is in progress, the real estate sector is hoping to get some relief that could help them in these challenging times and also measures that can help in sustaining demand, especially after the COVID-19 scenario. Though experts are saying the repo rates might not change, the hopes are high as in recent months the Apex bank has taken steps necessary to uplift the sector.

Last month, the central bank rationalized the risk-weight norms and linked home loans with loan-to-value (LTV) ratios only for all new housing loans sanctioned up to March 31, 2022. Earlier, the risk weight percentage was decided by the size of the loan and the LTV ratio. While acknowledging the criticality of real estate in the economic recovery process, the RBI said home loans have a risk weightage of 35% in case the LTV is of up to 80%. The risk weightage will be 50% if the LTV is over 80%, the banking regulator said.

Talking about the need for further steps, Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com, says, “The RBI has announced several favourable measures this year for the real estate sector; however, more needs to be done such as the decision on Input Tax Credit. The sector will obviously benefit from a further reduction in home loan interest rates but we feel that there is hardly any scope for a further rate cut this year. The sector should try to take advantage of the opportunities arising out of the decisions taken by the RBI over the past few months.”

Maintaining that rationalization of the risk weightage to LTV for all new housing loans was supposed to bring in more credit Yash Miglani, MD Migsun Group says, “The need is that RBI should ensure that the announcement should get immediately. The sector has yet to see the major impact of the announcements. We hope the individual banks will take the necessary steps and keep the real estate sector in their priority lending list. In the last few months, the government and the RBI took decisions intended to move towards the path of economic recovery, and real estate is looking for packages that can help them speed up the pace.”

The sector is already optimistic because of the increased buyer interest in real estate assets. “The developer community is all charged up to contribute towards the economic growth of the country. We hope the RBI will take more steps to ease out the burden on the real estate sector, which will further improve the economic condition,” says Ashish Bhutani, MD, Bhutani Infra.

Developers also feel that the RBI should announce some measures that can help attract buyers towards the real estate sector. “Steps are needed that will bring in positivity to the sector. The buyers should get more loan, especially the ones interested in high-value purchases that will help in revival of some segments,” says Amit Jain, Director, Mahagun Group.

One of the measures applauded by the realtors was the decision of the RBI to consider loan restructuring based on the projects and not on the company. “We are looking for steps that will further improve optimism in the market, which is already upbeat with buyers and investors flocking the project sites to book a real estate asset. In recent past, multiple decisions were taken by the RBI to improve the health of the real estate sector, and as a developer, we welcome it wholeheartedly and expect that more is in the pipeline,” says Dhiraj Bora, Marketing Head, Paramount Group.

Saying that loan restructuring will help many of the stuck projects and commenting on the impact of RBI’s steps, Ashok Gupta, CMD Ajnara India says, “The demand is already potent, and with road laid out for more projects to come up, the buyers will have more options to choose from. Not only developers but buyers also got gifts from the RBI in the form of low home loan interest rates and loans being linked to loan to value only. All these measures are going to have a positive impact on the overall health of the sector. Now, we feel that a call needs to be taken on Input Tax Credit and bringing down the cost of raw material apart from helping the sector get more liquidity.”

In conclusion, Rajat Goel, JMD MRG World says, “Real estate has been going through a challenging phase. Last financial year too, the situation was not good for the first nine months, and it got worse with the onslaught of the global pandemic. It has become difficult for many developers to manage cash flow to meet the requirements of construction, salaries, vendor payment, and then at the same time, they have the loan obligations. The overall sentiment needs a boost, and with adequate steps from the RBI, the confidence in the sector will be back.”

Business World

Master Green Park in Sector 117 will provide boost to real estate

Dec 1, 2020 by Neel Achary 0 Comments #Ajnara India Ltd., #Ashok Gupta, #CMD, #Dhiraj Bora, #Head, #Marketing & Communication, #Paramount Group

Noida: Real estate in sectors around Noida sector 117 got a fresh boost when Noida Authority announced that it would develop an 18-acre park with a butterfly design theme. To be ready by next year, the Master Green Park will have a cricket pitch, amphitheater, cafeteria, parking space, and convenience shops. The residents of sector 73, 75, 76, 77, 78, 116 and 115, 118, 120 will benefit from the development and the properties here are going to witness good appreciation in the short term.

Talking about the lifestyle change that this park will bring for this sector and adjoining sectors, Harvinder Singh Sikka, MD, Sikka Group, says, “Any infrastructural development in an area uplifts the real estate in and around the adjoining sectors. The park will bring in a healthy environment for the residents, and this will make others move to this sector. The nearby areas will also witness an appreciation in prices. We welcome the step taken by the Noida Authority for the betterment of Noida’s environment.”

In post COVID times, people are concerned about health and wellness; this park is going to provide an option for them to lead a healthy life as the park is going to have a play area with yoga, jogging, and an open gym. “People will be ready to spend an extra buck if they get facilities that help them value their lives. The worldwide pandemic has made everyone take notice of the fresh environment. The development of this park is going to have a positive effect on the real estate in the area,” says Ashok Gupta, CMD, Ajnara India Ltd.

The upcoming park will have parking for 200 vehicles, and toilets. According to the officials, 90% of the work is complete, and the park will be ready next year. Dhiraj Bora, Head, Marketing & Communication, Paramount Group, says, “This park will provide a boost for newer projects coming around sector 117. After the pandemic, people are looking for wellness amenities in the projects, and a park developed by the authority is an added advantage.”