Tag: Indian Real Estate

New demands of buyers: Connectivity, Hospitals

Connectivity plays a major role in the way the real estate market behaves. Infrastructure projects such as highways, distance from airport or railway station, and nearby marketplaces are often seen as the parameters to highlight the positives of a place. However, the importance of proximity to hospitals has increased manifold in the current situation.

“Not just hospitals, people are now more aware of the connectivity and ease of commutation that a project provides. In the current challenging time, people are a bit nervous as they witness the difficulties people face due to the remote location. We have always maintained that proximity to civilization is a must; all our projects are located at locations that provide faster access to most basic and important aspects of a relaxed life,” says Dhiraj Jain, Director, Mahagun Group.

People ask for the time distance against the physical distance; the most crucial aspect is that the project should be in an overcrowded place where travelling a short distance takes time. “Importance of reaching to a place faster has always been on the minds of the buyers. We can say that the kind of emergency people are facing now is unprecedented; it was obvious that the inquiries will now be directed towards this aspect followed by the facilities being given inside the premises,” says Vijay Verma, CEO, Sunworld.

The latest target of the real estate sector Post-Covid is modifying the projects with amenities and services that help provide a healthy lifestyle to the residents. “The projects are being planned with consumers’ needs in mind, who have become concerned about the health quotient of their living spaces. Consider a residential project with a world-class hospital or a housing project with weekly doctor visits for routine check-ups. People’s needs have changed dramatically, which has been affected largely by the global pandemic that has afflicted them. Almost all of them have international experience and have seen some of the most innovative housing schemes in other countries that promote a healthier way of life,” says Ashok Gupta, CMD, Ajnara India Ltd.

The development of infrastructure and connectivity has always been a major factor in attracting buyers and investors. Today’s buyers want not only well-planned developments but also a quick commute, so residential and commercial projects near expressways and link roads are more likely to attract interest. “With consumers finding it hard to invest in a property that is away from city centres, improved connectivity is the only solution that a region to emerge as a great alternative for people pursue their dreams,” says Harvinder Singh Sikka, MD, Sikka Group.

People are concerned about the health facilities offered within the projects, and the availability of medical assistance within a safe perimeter, after learning from the current pandemic. “As a result of the pandemic, there is a greater need to live in areas that will provide you with a safe environment. It also occurred to residents that they are not healthy even inside their homes unless the community takes the necessary health precautions. As people try to move into housing societies, this increased sense of security and safety is contributing to a rise in inquiries,” says Yash Miglani, MD, Migsun Group.

“Developers have realized that including wellness facilities in a community housing project is no longer a luxury; in reality, amenities such as fitness centers, indoor game courts, swimming pools, dedicated rooms for card and board games, and dedicated spaces for indoor table games are now needed to gain acceptance from today’s homebuyers,” adds Kushagr Ansal, Director, Ansal Housing.

Just last year, the trend of searching for projects that meet the connectivity criterion picked up steam. Developers have come up with projects in convenient places with amenities that are in line with the need to combat medical emergencies. As a result, the residential sector gained traction in Q1 2021 (January-March 2021), with more new launches and sales. According to a recent JLL survey, new launches in Delhi NCR more than doubled sequentially in Q1 2021. In terms of demand, revenues increased by 23% as compared to the previous quarter. Residential sales in the top seven cities recovered to more than 90% of the levels seen in Q1 2020 (pre-Covid) in Q1 2021 (Jan-March). Buyers favored projects by developers with demonstrated execution skills.

“People are also looking for projects that allow them to walk or cycle to work to stay active and productive. Buyers will want a home that meets their fitness and health requirements. This healthy lifestyle pattern does not necessarily imply that people will opt for higher-end goods, but it does indicate that they will be more aware of the project’s value proposition. Buyers must be provided with the best possible amenities that will assist them in maintaining their wellbeing. Demand is rising across the board in the residential real estate market,” says Dhiraj Bora, Head Marketing & Communication, Paramount Group.

Realtors seek relaxations and Government support for business continuity

The discontinuation of the stamp duty benefit by the Maharashtra Government has been a dampener on the real estate market which was just beginning to show signs of recovery in the last two quarters. To add to it, the lockdown announced by the State Government on the account of the resurgence in the Covid-19 cases have slowed-down the construction and sales activity across the entire real estate sector. Real estate developers in the city are now seeking certain relaxations in lockdown-like curbs imposed by the State Government till 1st May 2021.

Real estate developers’ body CREDAI-MCHI had written to the Municipal Corporation of Greater Mumbai to allow engineers and architects to visit construction sites of realtors to which the MCGM has given a nod. CREDAI-MCHI had also demanded that developers should be allowed to transport labourers from labour camps in private buses to construction sites.

Speaking regarding the same, Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Hon. Secretary, CREDAI-MCHI said, “The construction activity requires constant support and guidance of supervisors, architects and engineers at the site. Hence we had requested the Government to allow them at the construction sites with proper safety protocols. We thank the Government for giving the nod to allow supervisors, architects and engineers and also permitting construction activities at sites where labourers are already present. The new curbs won’t affect the large and medium-sized developers as they are already taking the necessary precautions at the sites. Although this will affect the small developers and also the redevelopment projects as they do not have enough space for labour camps. The permission to transport labourers from labour camps to construction sites adhering to safety guidelines will help the smaller developers to complete and deliver the projects on time and thus sustain the demand.”

“We are in talks with local urban bodies for conducting free tests for the labourers. For project sites in the outskirts of the city, we are planning to tie-up with private organizations to conduct the Covid tests. Most of the labourers are in the age groups from 20-40 and as per the GOI directive, the vaccination below the age of 45 has not been initiated yet. Hence we are writing to the Government to grant permission to conduct the vaccination for these labourers on priority and if feasible to conduct the vaccination drive on the construction site itself,” Mr. Chivukula further added.

CREDAI has announced it will provide free vaccination to over 2.5 crore construction workers at the sites of its over 13,000 developer members across 217 Indian cities and towns.

Apex realtors body NAREDCO too have demanded support from the Government for the continuation of the business as the drastic increase in the number of new Covid cases could adversely affect the demand for residential real estate.

Mr. Ashok Mohanani – President, NAREDCO Maharashtra said, “Although both the Central and State Government have taken ample measures to support the real estate sector in the past few months of this pandemic crisis, they need to ensure that the momentum continues as it is the second largest employment generator. The current lockdown has already played a spoiler on the festive spirit as we have witnessed muted sales on the occasion of Gudi Padwa. It would be difficult to sustain the demand if adequate Government support is not provided to the developers. We have requested the Government to allow the vaccination drive for labourers between the age-group of 20-45 years as most of the labourers fall in that age category. We also request to expedite the Covid tests as it is taking long to get the reports. The daily vaccination doses should also be increased to mitigate the risk factor. We are working closely with all the NAREDCO members and are adhering to all the necessary Government guidelines. Labourers are the most vital and integral part of real estate and taking utmost care of them is our paramount responsibility. Addressing the issue of reverse migration, we are ensuring that proper accommodation along with food is provided to the labourers at the sites and regular sanitization of the construction sites are done. We are also conducting regular health check-ups and vaccination awareness programs for the workers. We have made the Antigen test mandatory for all the migrant workers who are coming back from their hometown as per the Government guidelines. We are ensuring that they complete their tests before joining the construction sites,”

“We request the Government to ensure continuous supply of raw materials so that the construction at the sites does not get hampered. The developer community too are chalking out plans to ensure business continuity and sustained sales momentum through various technology and digital mediums,” Mr. Mohanani further added.

Builders are ensuring that the second wave of the pandemic does not spark another wave of reverse migration as this may reverse the gains made during the last two quarters.

Vijay Khetan Group is providing paid leaves to all the eligible workers for vaccination. Mr. Anuj Khetan, Director, Vijay Khetan Group said, “We have always prioritized the health and safety of our workers at all our different construction sites. We have arranged for hygienic boarding and lodging on site for our workers along with distribution of face masks and sanitizers. The Covid 19 pandemic, while draws the world’s attention on the importance of vaccines, we have ensured to give paid leave to all the eligible workers for vaccination. Also, for the workers, we are getting RT PCR tests done as per the government guidelines. We are maintaining thorough sanitization at all our sites for the safety of our workers and stakeholders.”